Biogen (BIIB) Q1 Earnings & Sales Top, Spinraza Sales Strong

Biogen Inc. (NASDAQ:BIIB) reported better-than-expected results in the first-quarter of 2017. The company surpassed expectations both for earnings and sales.

Shares of Biogen rose more almost 5% in pre-market trading in response to the strong results. However, we note that Biogen’s shares declined 2.3% so far this year, which compares unfavorably with the Zacks classified Medical-Biomed/Genetics industry’s increase of 3.2%.



Coming back to the results, Biogen reported first-quarter 2017 earnings per share of $5.20, which beat the Zacks Consensus Estimate of $4.97 by 4.6%. The bottom line also improved 9% year over year.

Sales came in at $2.81 billion, up 3% from the year-ago period. Sales also surpassed the Zacks Consensus Estimate of $2.73 billion by 2.9%. The top line, excluding hemophilia revenues, grew 8%. The company spun off its hemophilia business in Feb 2017.

Quarter in Detail

Sales of oral multiple sclerosis (MS) drug Tecfidera rose 1% from the year-ago period to $958 million. However, the drug recorded a 4.4% sequential decline in revenues. This included U.S. sales of $751.1 million and ex-U.S. sales of $207.1 million.

First-quarter Tysabri revenues increased 14% year over year and 15% sequentially to $545 million (U.S. $305.5 million, ex-U.S. $239.5 million).

Combined interferon revenues (Avonex and Plegridy) in the first quarter were $648.3 million (U.S. $464.8 million, ex-U.S. $183.5 million), down 3.3% from the year-ago period and 5.8% sequentially. Avonex revenues declined 5% from the year-ago period to $537 million.

Plegridy contributed $112 million to first-quarter 2017 revenues, up 5% year over year but down 10% sequentially.

Zinbryta, which was launched in collaboration with AbbVie Inc. (NYSE:ABBV) in August last year, contributed $10.7 million to revenues in the quarter compared with $5.9 million in fourth-quarter 2016.

In the quarter, Biogen recorded biosimilar revenues of $66 million compared with $53 million in fourth-quarter 2016. Biogen markets Flixabi, a biosimilar referencing Johnson & Johnson’s (NYSE:JNJ) blockbuster drug Remicade. The company also markets Benepali, a biosimilar referencing Amgen Inc.’s (NASDAQ:AMGN) Enbrel in Europe.

Revenues from Anti-CD20 therapeutic programs, which include Biogen’s share of Rituxan and Gazyva operating profits, increased 3.4% from the year-ago period to $340.6 million in the first quarter.

Newly launched Spinraza brought revenues of $47.4 million in the first quarter compared with $4.6 million in fourth-quarter 2016. The company said that Spinraza, approved for the treatment of patients with spinal muscular atrophy, is off to a strong start. Sales in the quarter were much better than market expectations.

In April, Biogen announced that the Committee for Medicinal Products for Human Use (CHMP) adopted a positive opinion recommending marketing approval for Spinraza in the EU.

Research and development expenses rose 4% in the reported quarter to $421 million, SG&A spend increased 3% year over year to $483 million.

In the quarter, the company repurchased shares worth $584 million.

Zacks Rank & Key Picks

Biogen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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