Biogen 1Q profit climbs 3 pct, Tysabri sales rise
WESTON, Mass.—Biogen Idec Inc.'s first-quarter net income rose 3 percent, as sales of the multiple sclerosis treatment Tysabri helped fuel the drugmaker's growth.
But results missed Wall Street expectations and shares fell 2.9 percent in morning trading.
The Weston, Mass., company said Tuesday it earned $302.7 million, or $1.25 per share, in the three months that ended March 31. That compares with earnings of $294.3 million, or $1.20 per share, in last year's quarter.
Excluding costs for restructuring, paying employees with stock and other items, earnings were $1.40 per share. Analysts surveyed by FactSet expected, on average, earnings of $1.48 per share
Revenue rose 7 percent to $1.29 billion. Analysts expected $1.31 billion.
Biogen focuses on treatments for neurodegenerative diseases, hemophilia and autoimmune disorders.
Global sales of Tysabri climbed 14 percent to $399 million. Sales of another multiple sclerosis treatment, Avonex, rose 3 percent to $662 million.
Multiple sclerosis is a disease in which the immune system attacks healthy nerves. It can cause pain, numbness, slurred speech, impaired vision, muscle weakness, and neurological problems.
While revenue climbed, costs and expenses rose 17 percent to $922.6 million, as research and development and selling, general and administrative expenses rose.
Biogen now expects 2012 adjusted earnings, which exclude one-time costs, above $6.15 per share. In January, it forecasted an earnings range of $6.10 to $6.20 per share.
Analysts expect, on average, earnings of $6.20 per share.
Shares fell $3.88 to $130.13. They have ranged from $83.83 to $134.50 in the past 12 months.