Biogen Idec 1Q profit up 24 percent, helped by MS drug

Sales of a new multiple sclerosis drug helped lift Biogen Idec Inc.'s first-quarter profit by 24 percent to beat Wall Street expectations, and the biotechnology firm raised its full-year earnings forecast.

The Cambridge, Mass.-based company said Wednesday it earned $163.1 million, or 54 cents per share in the three months ended March 31, compared with a profit of $131.5 million, or 38 cents per share, in last year's first quarter.

Excluding several one-time charges, Biogen Idec's profit was $250 million, or 83 cents per share. That result beat the 79 cents-per-share consensus estimate of analysts surveyed by Thomson Financial.

First-quarter revenue rose 32 percent to $942.2 million — soundly beating analysts' consensus forecast of $890.1 million — from $715.9 million a year ago.

Biogen Idec raised its financial forecast, with expectations for a full-year profit of $3.25 to $3.45 per share. That range is up from previous per-share guidance for $3.20 to $3.35, and slightly above analysts' $3.30 estimate. Biogen Idec expects full-year revenue to increase at the top end of its previously estimated range of 15 percent to 20 percent.

After rising as high as $66.12 in Wednesday trading, the shares reversed course and fell 11 cents to close at $64.51.

RBC Capital Markets analyst Jason Kantor said investors may have shrugged off Biogen Idec's stronger-than-expected quarterly performance and improved outlook after recent gains for the stock. Shares have risen nearly 18 percent over the past month and a half.

"Perhaps this was already anticipated by many," Kantor said.

Tysabri, an MS treatment, brought in $114.7 million in revenue for Biogen Idec. That was more than triple the $29.7 million in last year's first quarter, shortly after the drug was reintroduced to the market with distribution restrictions to address safety concerns involving a rare brain disorder.

Biogen Idec shares rights to the drug with Ireland-based partner Elan Corp. About 26,000 patients were taking Tysabri at the quarter's end, up from 21,000 at the end of last year.

Paul Clancy, Biogen Idec's chief financial officer, said in an interview that Tysabri's first-quarter growth puts the drug on track to exit this year with an annual sales rate of $1 billion.

Clancy attributed the company's increased financial guidance to "a strong first quarter, and a growing feeling of confidence in Tysabri's sales curve."

Sales of Avonex, a 12-year-old MS treatment, rose 19 percent in the latest quarter to $536 million.

Biogen Idec's share of revenue for Rituxan, a treatment for non-Hodgkins lymphoma and rheumatoid arthritis, rose 19 percent to $247 million. Biogen Idec co-promotes Rituxan in the U.S. with Genentech Inc.

Biogen Idec's earnings report came before an expected proxy battle at the company's annual meeting, which has not been scheduled.

Activist investor Carl Icahn, who became a major Biogen shareholder last year, has proposed a slate of three nominees to the company's board. Last week, the company rejected Icahn's nominees.

Icahn triggered a two-month effort by Biogen last fall to seek a buyer for the company. The search ended without any definitive bids, and Icahn accused the firm of rigging the search to fail. The company has said it expects to remain independent.

Icahn's campaign and prospects of a buyout didn't come up in the company's earnings conference call with analysts on Wednesday.