Biogen Inc. (BIIB, Financial), a Cambridge, Massachusetts-based biotech company, reported continued success in its long-term company strategies during the quarter ending June 30.
The company reported consolidated revenues of $3.1 billion and diluted earnings of $4.07 per share for the quarter, with revenue growth of 6% driven by strength in multiple sclerosis (MS).
Brief summary of earnings report
CEO Michel Vounatsos said Biogen’s “market-leading MS portfolio continues to perform as [the company] anticipated at the beginning of the year.” Tecfidera revenues increased 13% year over year, with domestic and international revenues of $875 million and $236 million. U.S. Tecfidera revenues benefitted from seasonal recovery in unit volumes, discounts and allowances.
Biogen also reported $203 million in sales for its spinal muscular atrophy product Spinraza, an increase of over $150 million from prior-year quarter Spinraza sales. While international sales only account for less than 4% of total sales, Biogen’s spinal muscular atrophy product expanded to Europe, Canada and Japan, allowing patients to receive treatments for a disease that “previously had no approved therapies.”
According to Vounatsos, Biogen’s mission is to become “the world’s leader in neuroscience.” During the quarter, the company completed two transactions that align with the company’s mission: an asset purchase of Remedy Pharmaceuticals’s CiraraTM for $120 million and an exclusive license agreement with Bristol-Myers Squibb Co. (BMY, Financial) for BMS-986168, an anti-tau antibody with potential to find cures for Alzheimer’s. CiraraTM, branded as BIIB093, expects to treat hemispheric infarction, “a severe form of ischemic stroke.”
Company offers good growth potential
Biogen increased its full-year earnings guidance as the company delivered strong second-quarter results. The company has a profitability rank of 9 and a business predictability rank of five stars, driven by high margins and returns. Biogen’s operating margin and ROE outperform 96% of global biotech companies.
Disclosure: The author has no positions in the companies mentioned.
