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Biogen (BIIB) Stock Up on Q2 Earnings Beat, Raised Outlook
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Biotech company, Biogen Inc.’s (BIIB - Free Report) shares were up more than 5% in pre-market trading with the company surpassing earnings expectations by a wide margin. Revenues also surpassed expectations.
The company reported second-quarter 2016 earnings per share of $5.21, well above the Zacks Consensus Estimate of $4.69 and 23% above the year-ago earnings.
Sales came in at $2.9 billion, increasing 12% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.8 billion. Currency negatively impacted revenues by $44 million.
MS Franchise and Hemophilia Business Drive Revenues
Oral multiple sclerosis (MS) drug Tecfidera, which grew 12% from the year-ago period to $987 million, recorded a 4% sequential improvement in revenues. This included U.S. sales of $780.3 million and ex-U.S. sales of $206.2 million.
Second-quarter Tysabri revenues increased 7% to $497 million (U.S. $304.9 million, ex-U.S. $192.5 million) from the year-ago period.
Combined interferon revenues (Avonex and Plegridy), in the second quarter, were $728 million (U.S. $519 million, ex-U.S. $209.3 million), up 6% from the year-ago period and 9% sequentially. Avonex revenues declined 2% from the year-ago period to $606 million.
Plegridy contributed $123 million to second-quarter 2016 revenues, up 16% sequentially.
Anti-CD20 revenues grew 3% from the year-ago period to $349 million in the second quarter.
Alprolix and Eloctate, Biogen’s hemophilia treatments, recorded revenues of $80 million and $125 million, respectively, showing sequential growth of 7% and 16%, respectively.
R&D spend declined 3.7% in the reported quarter to $473 million while SG&A spend came in at $489 million, down 0.6%.
Raises 2016 Outlook
Biogen raised its outlook for 2016 and now expects earnings of $19.70 - $20.00 per share on revenues of $11.2 - $11.4 billion. Earlier this year, the company had guided towards 2016 earnings of $18.30 - $18.60 per share on revenues of $11.1 - $11.3 billion. The Zacks Consensus estimate for revenues and earnings is currently $11.3 billion and $19.04 per share, respectively.
Guidance includes contribution from the hemophilia business with the spin-off expected in early 2017.
The Board also authorized a share buyback program worth up to $5 billion. Biogen expects to execute the program over the next three years. Biogen still has about 1.3 million shares left under its Feb 2011 share repurchase program.
CEO to Step Down
Biogen also announced that its Chief Executive Officer, George A. Scangos, will step down in the coming months after a successor is identified.
Biogen’s second-quarter results were impressive with the company surpassing earnings expectations by a huge margin. The stock, which has been under pressure on concerns regarding a slowdown in Tecfidera’s growth rate as well as overall concerns regarding pricing in the biotech sector, saw its MS franchise recording a sequential improvement in performance. Investors should be cheered by this in addition to the raised outlook. The hemophilia franchise also performed well.
Biogen is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include ANI Pharmaceuticals Inc. (ANIP - Free Report) , Innoviva, Inc. (INVA - Free Report) and Gilead Sciences Inc. (GILD - Free Report) . While ANI and Innoviva are Zacks Rank #1 (Strong Buy) stocks, Gilead is a Zacks Rank #2 (Buy) stock.
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Biogen (BIIB) Stock Up on Q2 Earnings Beat, Raised Outlook
Biotech company, Biogen Inc.’s (BIIB - Free Report) shares were up more than 5% in pre-market trading with the company surpassing earnings expectations by a wide margin. Revenues also surpassed expectations.
The company reported second-quarter 2016 earnings per share of $5.21, well above the Zacks Consensus Estimate of $4.69 and 23% above the year-ago earnings.
Sales came in at $2.9 billion, increasing 12% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.8 billion. Currency negatively impacted revenues by $44 million.
MS Franchise and Hemophilia Business Drive Revenues
Oral multiple sclerosis (MS) drug Tecfidera, which grew 12% from the year-ago period to $987 million, recorded a 4% sequential improvement in revenues. This included U.S. sales of $780.3 million and ex-U.S. sales of $206.2 million.
Second-quarter Tysabri revenues increased 7% to $497 million (U.S. $304.9 million, ex-U.S. $192.5 million) from the year-ago period.
Combined interferon revenues (Avonex and Plegridy), in the second quarter, were $728 million (U.S. $519 million, ex-U.S. $209.3 million), up 6% from the year-ago period and 9% sequentially. Avonex revenues declined 2% from the year-ago period to $606 million.
Plegridy contributed $123 million to second-quarter 2016 revenues, up 16% sequentially.
Anti-CD20 revenues grew 3% from the year-ago period to $349 million in the second quarter.
Alprolix and Eloctate, Biogen’s hemophilia treatments, recorded revenues of $80 million and $125 million, respectively, showing sequential growth of 7% and 16%, respectively.
R&D spend declined 3.7% in the reported quarter to $473 million while SG&A spend came in at $489 million, down 0.6%.
Raises 2016 Outlook
Biogen raised its outlook for 2016 and now expects earnings of $19.70 - $20.00 per share on revenues of $11.2 - $11.4 billion. Earlier this year, the company had guided towards 2016 earnings of $18.30 - $18.60 per share on revenues of $11.1 - $11.3 billion. The Zacks Consensus estimate for revenues and earnings is currently $11.3 billion and $19.04 per share, respectively.
Guidance includes contribution from the hemophilia business with the spin-off expected in early 2017.
The Board also authorized a share buyback program worth up to $5 billion. Biogen expects to execute the program over the next three years. Biogen still has about 1.3 million shares left under its Feb 2011 share repurchase program.
CEO to Step Down
Biogen also announced that its Chief Executive Officer, George A. Scangos, will step down in the coming months after a successor is identified.
BIOGEN INC Price
BIOGEN INC Price | BIOGEN INC Quote
Our Take
Biogen’s second-quarter results were impressive with the company surpassing earnings expectations by a huge margin. The stock, which has been under pressure on concerns regarding a slowdown in Tecfidera’s growth rate as well as overall concerns regarding pricing in the biotech sector, saw its MS franchise recording a sequential improvement in performance. Investors should be cheered by this in addition to the raised outlook. The hemophilia franchise also performed well.
Biogen is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the health care sector include ANI Pharmaceuticals Inc. (ANIP - Free Report) , Innoviva, Inc. (INVA - Free Report) and Gilead Sciences Inc. (GILD - Free Report) . While ANI and Innoviva are Zacks Rank #1 (Strong Buy) stocks, Gilead is a Zacks Rank #2 (Buy) stock.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>