Biogen lifts full-year profit forecast as Tecfidera boosts quarter
Reuters
Published Jul 22, 2020 07:16AM ET
Updated Jul 22, 2020 08:25AM ET
(Reuters) - Biogen Inc (O:BIIB) raised its 2020 earnings forecast after better-than-expected sales of its multiple sclerosis treatment Tecfidera helped the drugmaker beat second-quarter profit estimates.
The company's shares rose 2.8% before the opening bell as the results allayed investor apprehensions over rising competition to Tecfidera.
Tecfidera, Biogen's best-selling treatment, generated sales of $1.18 billion in the quarter, ahead of Wall Street estimates of $1.11 billion.
The drug faces increasing competition from newer treatments, including Roche Holding AG's (S:ROG) Ocrevus, and Biogen in June lost a patent dispute with Mylan NV (O:MYL) over Tecfidera. Analysts have said the ruling opens the threat of cheaper rivals in the United States.
Biogen said on Tuesday the raised forecast does not include any impact from the potential entry of generic versions of Tecfidera in the United States in 2020.
The company, which named a new chief financial officer on Tuesday, now expects 2020 full-year adjusted profit to be between $34 and $36 per share, up from its prior forecast of between $31.50 and $33.50.
The results come as investors await U.S. regulatory action on Biogen's application seeking approval of its closely watched Alzheimer's drug, as well as the company's COVID-19 treatment program with Vir Biotechnology (O:VIR).
However, overall sales of Biogen's multiple sclerosis treatments fell 2% in the quarter. Analysts had said sales of the treatments could be hurt by physician offices staying shut due to the COVID-19 pandemic.
Net income attributable to the company rose to $1.54 billion, or $9.59 per share, in the three months ended June 30 from $1.49 billion, or $7.85 per share, a year earlier. (https://
Excluding items, Biogen earned $10.26 per share, above Refinitiv IBES estimates of $8.03.
Total revenue rose 1.8% to $3.68 billion, beating expectations of $3.43 billion.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.