Biogen 1Q profit rises 35 percent on Tysabri sales

Associated Press

Biogen Idec Inc., a Weston biotechnology company, said today that its net income rose 35 percent in the first quarter as sales of its multiple sclerosis drug Tysabri grew and one-time charges decreased.

Shares of the company soared in premarket trading.

Biogen reported a profit of $294.3 million, or $1.20 per share, up from a total of $217.4 million, or 80 cents per share, in the first quarter of 2010. Excluding a $16.6 million restructuring charge and other one-time costs and gains, its income grew to $1.43 per share from $1.08 per share.

In the first quarter of 2010, Biogen Idec reported a $14 million charge related to an investment in AVEO Pharmaceuticals, and a $13 million charge connected to provisions of the health care overhaul law.

Revenue grew 9 percent, to $1.2 billion from $1.11 billion.

Analysts expected a profit of $1.41 per share and $1.18 billion, according to FactSet. Analyst estimates usually leave out one-time items.

The company said its product sales increased 10 percent to $907.1 million. Its revenue from Tysabri, which is used to treat MS and Crohn's disease, grew 15 percent to $251 million. Sales of the company's older multiple sclerosis treatment Avonex rose 8 percent to $642 million. Revenue from the cancer drug Rituxan dipped to $256 million from $257 million.

Biogen markets Tysabri through a partnership with Elan Corp. PLC of Ireland, and sells Rituxan through a partnership with Genentech, a unit of Roche AG. The company said worldwide sales of Tysabri grew 20 percent to $349 million. Biogen estimated that 58,400 patients were using Tysabri at the end of the quarter.

Shares of Biogen Idec leaped $17.54, or 20 percent, to $104.11 in premarket trading. The stock closed at an annual high of $86.57 on Wednesday and has nearly doubled in value over the last nine months.