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 Some of those sales were due to U.S. inventory stocking ahead of a
10 percent Tecfidera price increase in December. Biogen said
underlying patient demand for the drug represented about $348
million of the U.S. sales, still ahead of analysts' consensus
expectations of about $335 million.
Biogen provided forecasts for 2014 that were likely to be viewed as
a mixed bag, with revenue growth projections ahead of Wall Street
expectations but an earnings outlook that fell short of the current
analysts' view.
The company forecast revenue growth of about 22 percent to 25
percent and earnings of $11 to $11.20 per share, excluding items.
Analysts, on average, were looking for revenue growth of about 20
percent and earnings of $11.63 per share, according to Thomson
Reuters I/B/E/S.
"The guidance was very robust on the top line," said Cowen and Co
analyst Eric Schmidt. "A conservative management team like Biogen
starting the year off with guidance that's significantly above
consensus, that's a strong signal."
The earnings forecast shortfall was likely due to $200 million in
the research and development budget that the company has earmarked
for future business development, Schmidt said.
"The EPS guidance appears conservative in light of revenue growth
expectations," Sanford Bernstein analyst Geoffrey Porges said in a
note. "Historically, Biogen has been able to beat initial guidance
by 7 percent in the top line and 12 percent in the bottom line."
Investors gave Biogen management the benefit of the doubt, sending
shares up nearly 2 percent on a down day for the broader markets.
Biogen was one of the best performers of 2013, with the stock
soaring more than 90 percent.
Investor focus has been squarely on the performance of Tecfidera,
which has become the top-selling oral MS treatment in the United
States despite being third to market. The company expects European
approval in the coming days or weeks, which would be another major
catalyst for sales.
Biogen said it was set to begin selling the drug in Germany as soon
as European Union approval comes through with subsequent launches on
a country-by-country basis as reimbursement is secured. The drug is
already approved in Australia and Canada.
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Biogen said more than 6,000 doctors have prescribed Tecfidera so
far, and that more than 30 percent of new patients in the fourth
quarter had not been on prior therapies, such as Biogen's injectable
MS drugs Avonex and Tysabri.
Biogen said its fourth-quarter profit jumped 57 percent, fueled by
Tecfidera. The net profit rose to $457.3 million, or $1.92 per
share, from $292.1 million, or $1.23 per share, a year earlier.
Excluding special items, Biogen earned $2.34 per share, topping
analysts' average expectations by 6 cents, according to Thomson
Reuters I/B/E/S.
Total revenue rose 39 percent to $1.97 billion, edging past the
average analyst estimate of $1.93 billion.
Avonex sales were flat at $751 million, but were about 3 percent
ahead of analysts' expectations.
Tysabri sales of $427 million fell well short of Wall Street
estimates of about $470 million, in part due to an Italian
reimbursement dispute that was expected to be settled in the quarter
but carried over to 2014.
Biogen said Tysabri discontinuation rates improved in the quarter,
but that it remained under pressure in Europe due to competition
from oral medicines sold by Novartis and Sanofi.
The company said it continued to expect approvals this year for
hemophilia drugs Eloctate and Alprolix, putting Biogen into that
market for the first time. It sees a mid-year launch of Plegridy, a
new interferon drug for relapsing MS.
Biogen Idec shares rose $5.79 to $311.44 in afternoon trading on
Nasdaq.
(Reporting by Bill Berkrot in New York
and Esha Dey in Bangalore; editing by Savio D'Souza and Jeffrey
Benkoe)
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