Biotech company Biogen Inc.’s (BIIB - Free Report) shares were up more than 2% in pre-market trading, with the company surpassing earnings as well as sales expectations.
The company reported third-quarter 2016 earnings per share of $5.19, beating the Zacks Consensus Estimate of $4.99 by 4% and 16% higher than the year-ago earnings.
Sales came in at $2.96 billion, increasing 6% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.90 billion by 2.1%. Currency negatively impacted revenues by $54 million. Top-line growth was driven by the solid performance of Biogen’s multiple sclerosis business.
Quarter in Detail
Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. This included U.S. sales of $845.1 million and ex-U.S. sales of $188.6 million.
Revenues reflected a $40 million to $50 million benefit from an inventory rebalancing in the channel. However, outside U.S. sales decreased sequentially primarily due to parallel trade dynamics.
Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. Tysabri’s sales also grew 4% sequentially
Combined interferon revenues (Avonex and Plegridy), in the third quarter, were $708 million (U.S. $505.7 million, ex-U.S. $202.6 million), down 10% from the year-ago period and 3% sequentially. Avonex revenues declined 15% from the year-ago period to $580 million.
Plegridy contributed $128 million to third-quarter 2016 revenues, up 28% year over year and 4% sequentially.
Zinbryta, launched in collaboration with AbbVie Inc. (ABBV - Free Report) in August, contributed $2 million to revenues in the quarter.
Alprolix and Eloctate, Biogen’s hemophilia treatments, recorded revenues of $132 million and $85 million, respectively, both showing sequential growth of 6%.
In the quarter, Biogen recorded biosimilar revenues of $31 million compared with $15 million in the second quarter. It launched biosimilar versions of Johnson & Johnson (JNJ - Free Report) and Amgen Inc.’s (AMGN - Free Report) blockbuster drugs, Remicade and Enbrel, respectively, in Europe.
Anti-CD20 revenues declined 6% from the year-ago period to $318 million in the third quarter.
R&D spend declined 2% in the reported quarter to $529 million while SG&A spend came in at $461 million, 4% higher year over year.
In the quarter, the company repurchased shares worth $349 million.
2016 Outlook
The company did not provide any update regarding its previously issued full-year outlook. At the second quarter conference call, Biogen said it expects earnings of $19.70 to $20.00 per share on revenues of $11.2 billion to $11.4 billion in 2016. Guidance includes contribution from the hemophilia business, which Biogen expects to spin-off in early 2017.
Our Take
Biogen’s third-quarter results were impressive with the company surpassing earnings expectations by a fairly decent 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 key MS drugs Tecfidera and Tysabrirecording a sequential improvement. Investors should be cheered by this. The hemophilia franchise also performed well.
Biogen carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Biotech company Biogen Inc.’s (BIIB - Free Report) shares were up more than 2% in pre-market trading, with the company surpassing earnings as well as sales expectations.
The company reported third-quarter 2016 earnings per share of $5.19, beating the Zacks Consensus Estimate of $4.99 by 4% and 16% higher than the year-ago earnings.
Sales came in at $2.96 billion, increasing 6% from the year-ago period and surpassing the Zacks Consensus Estimate of $2.90 billion by 2.1%. Currency negatively impacted revenues by $54 million. Top-line growth was driven by the solid performance of Biogen’s multiple sclerosis business.
Quarter in Detail
Oral multiple sclerosis (MS) drug Tecfidera, which grew 10% from the year-ago period to $1.03 billion, recorded a 5% sequential improvement in revenues. This included U.S. sales of $845.1 million and ex-U.S. sales of $188.6 million.
Revenues reflected a $40 million to $50 million benefit from an inventory rebalancing in the channel. However, outside U.S. sales decreased sequentially primarily due to parallel trade dynamics.
Third-quarter Tysabri revenues increased 7% to $515 million (U.S. $301.1 million, ex-U.S. $214.4 million) from the year-ago period. Tysabri’s sales also grew 4% sequentially
Combined interferon revenues (Avonex and Plegridy), in the third quarter, were $708 million (U.S. $505.7 million, ex-U.S. $202.6 million), down 10% from the year-ago period and 3% sequentially. Avonex revenues declined 15% from the year-ago period to $580 million.
Plegridy contributed $128 million to third-quarter 2016 revenues, up 28% year over year and 4% sequentially.
Zinbryta, launched in collaboration with AbbVie Inc. (ABBV - Free Report) in August, contributed $2 million to revenues in the quarter.
Alprolix and Eloctate, Biogen’s hemophilia treatments, recorded revenues of $132 million and $85 million, respectively, both showing sequential growth of 6%.
In the quarter, Biogen recorded biosimilar revenues of $31 million compared with $15 million in the second quarter. It launched biosimilar versions of Johnson & Johnson (JNJ - Free Report) and Amgen Inc.’s (AMGN - Free Report) blockbuster drugs, Remicade and Enbrel, respectively, in Europe.
Anti-CD20 revenues declined 6% from the year-ago period to $318 million in the third quarter.
R&D spend declined 2% in the reported quarter to $529 million while SG&A spend came in at $461 million, 4% higher year over year.
In the quarter, the company repurchased shares worth $349 million.
2016 Outlook
The company did not provide any update regarding its previously issued full-year outlook. At the second quarter conference call, Biogen said it expects earnings of $19.70 to $20.00 per share on revenues of $11.2 billion to $11.4 billion in 2016. Guidance includes contribution from the hemophilia business, which Biogen expects to spin-off in early 2017.
Our Take
Biogen’s third-quarter results were impressive with the company surpassing earnings expectations by a fairly decent 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 key MS drugs Tecfidera and Tysabrirecording a sequential improvement. Investors should be cheered by this. The hemophilia franchise also performed well.
Biogen carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BIIB - FREE
Get the latest research report on JNJ - FREE
Get the latest research report on AMGN - FREE
Get the latest research report on ABBV - FREE