Biogen Idec, Inc. (BIIB: Quote) on Tuesday lifted its fiscal 2012 adjusted earnings forecast, reflecting significantly higher earnings and revenues for the second quarter that surpassed analysts' estimates. At the same time, the company trimmed its full-year earnings forecast including items, and maintained revenue growth view.
In the second quarter, revenues from multiple sclerosis drug Avonex and cancer drug Rituxan climbed from last year, while contribution from its key multiple sclerosis drug Tysabri remained flat.
In pre-market activity, the biotechnology firm's shares increased $3.77 or 2.71 percent, and is currently trading at $143.
Chief Executive Officer George Scangos said, "At the midpoint of a pivotal year, we continue to succeed in the marketplace and track against our goals. We have a busy nine months ahead of us preparing for the BG-12 launch and four pivotal trial data readouts..."
For the second quarter, net income attributable to the company climbed 34 percent to $386.85 million and earnings per share grew 36 percent to $1.61.
Adjusted net income increased 32 percent to $439 million and earnings per share climbed 34 percent to $1.82 from $1.36 in the year ago quarter.
On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $1.56 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter rose 18 percent to $1.42 billion from $1.21 billion, beating Wall Street analysts' consensus estimate of $1.33 billion.
Revenues of Avonex, used in patients with relapsing forms of multiple sclerosis, increased 16 percent year-over-year to $762 million. Revenues for cancer drug Rituxan climbed 31 percent to $285 million. During the quarter, Biogen Idec's share of Rituxan revenues from unconsolidated joint business was reduced to reflect its share of damages and interest that might be awarded in relation to an intermediate decision in Genentech, Inc.'s ongoing arbitration with Hoechst GmbH.
Biogen Idec's key product Tysabri, manufactured and distributed jointly with Elan Corp. plc (ELN), generated revenues of $280 million, flat with last year. The drug's global in-market sales edged up 2 percent to $395 million, comprising $211 million in U.S. sales and $184 million in sales outside the U.S.
Based upon data from the Touch prescribing program and other third-party sources, approximately 69,100 patients were on commercial and clinical Tysabri therapy worldwide as of the end of June. The drug is approved in more than 65 countries.
Biogen Idec said it is preparing for the potential of multiple product launches in the coming years.
Looking ahead for fiscal 2012, the company now expects net earnings to be above $5.44 per share, lower than previous forecast of $5.54 per share. However, adjusted earnings is now projected to be above $6.20, higher than the $6.15 per share expected earlier.
The company continues to expect revenue growth in the mid-single digits versus 2011. Analysts expect the company to report earnings of $6.22 per share on revenues of $5.39 billion for fiscal 2012.
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by RTT Staff Writer
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