Biogen Profit Easily Tops Views

Biogen Inc., which has been working to reinvigorate growth, said its profit rose and easily topped Wall Street's expectations in the latest quarter as sales of its largest multiple sclerosis drug drove higher sales.

Shares, which have climbed 4.2% in the past 12 months, rose 2.1% to $292 in premarket trading.

The vast majority of Biogen's revenue comes from multiple sclerosis drugs that some analysts see as growing relatively slowly. Cambridge, Mass.-based Biogen has focused its research-and-development efforts on new treatments for multiple sclerosis and other neurodegenerative conditions, such as Alzheimer's disease and Parkinson's disease. The firm is spinning off its hemophilia drug business, where sales have been rising at a faster clip but make up a smaller chunk of total revenue.

Sales of its biggest drug, Tecfidera, grew 10% its latest quarter and drove growth. Tecfidera brought in $1.03 billion during the period, representing roughly 41% of product revenue. The company said the MS drug was helped by inventory build.

Meanwhile, the company's two hemophilia drugs grew at a much faster pace, and brought in a combined $217 million.

Chief Executive George Scangos announced in July he would be leaving the company, allowing a new chief to lead the company as it works to reignite growth. The biotechnology giant has also drawn takeover interest from drug companies such as Merck Co. and Allergan PLC, The Wall Street Journal reported in August.

Overall for the third quarter, Biogen reported a profit of $1.03 billion, or $4.71 a share, up from $965.6 million, or $4.15 a share, a year earlier. Excluding the restructuring charges, among other items, per-share earnings rose to $5.19 from $4.48.

Total revenue rose 6% to $2.96 billion. Analysts had projected adjusted earnings of $4.97 a share on sales of $2.91 billion, according to Thomson Reuters.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

October 26, 2016 08:15 ET (12:15 GMT)

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