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Shares of the company were marginally up in volatile early
trade, having given up their early gains as investors worried
over the long-term prospects of Biogen's most closely watched
growth driver Spinraza.
Spinraza is the first approved treatment for spinal muscular
atrophy (SMA) and has been a major focus for investors. Sales
from the drug rose 15.4% to $488 million in the second quarter,
but missed estimates of $535.1 million, according to IBES data
from Refinitiv.
The company said overseas sales of Spinraza came under pressure
from pricing adjustment in France and as patients moved to a
lower-priced maintenance dose from an induction dose in some
mature markets.
The recent launch of Zolgensma, Novartis AG's <NOVN.S> one-time
gene therapy for SMA, is expected to further eat into Spinraza
sales.
Zolgensma may take time to cannibalize Spinraza given its narrow
initial label said RBC analyst Brian Abrahams, but noted that
the Q2 sales miss could prompt the Street to become more
conservative on expectations for out-year sales of Spinraza.
Biogen said it has not seen a meaningful impact from Zolgensma
till date.
The company raised its 2019 adjusted earnings forecast to
between $31.50 and $32.30 per share from the prior range of $28
to $29. Analysts were expecting $29.70 per share.
Tecfidera brought in $1.15 billion in second-quarter sales,
beating estimates of $1.05 billion. The drug, however, faces
patent challenges and is losing market share to newer treatments
such as Roche Holding AG's <ROG.S> Ocrevus.
Net income attributable to the company rose 72% to $1.49 billion
in the quarter ended June 30. (https://bit.ly/2LDqLL6)
Excluding items, Biogen earned $9.15 per share, breezing past
consensus estimate of $7.53.
Total revenue rose to $3.62 billion from $3.36 billion.
(Reporting by Saumya Sibi Joseph and Manas Mishra in Bengaluru;
Editing by Shinjini Ganguli)
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