Biogen Gains After Fourth-Quarter Sales Top Estimates

Biogen Idec Inc. (BIIB) reported fourth- quarter profit that exceeded analysts’ estimates after adjusting for a correction in tax accounting related to a Denmark facility, as sales of its multiple sclerosis drugs rose.

Earnings excluding one-time items were $1.40 a share, Weston, Massachusetts-based Biogen said today in a statement. Without the 12-cent tax expense, adjusted profit beat by 6 cents the average of 25 analysts’ estimates compiled by Bloomberg. The accounting correction added $29 million in expenses.

Revenue rose 6.9 percent to $1.42 billion, topping analysts’ $1.39 billion average estimate. The company forecast 2013 earnings, adjusted for one-time items, of $7.15 to $7.25 a share. Analysts had estimated $7.25 a share, on average.

“Revenue and EPS guidance is in-line with the street,” Mark Schoenebaum, an analyst with ISI Group, wrote in a note to clients today. Fourth-quarter “revenue results look generally strong.”

Biogen gained 2.6 percent to $149.99 at the close in New York, the biggest one-day increase since Nov. 20. The shares has increased 27 percent in the past 12 months.

Net income declined 2.7 percent to $292.1 million, or $1.23 a share, from $300.2 million, or $1.22, a year earlier, the company said.

Sales of Biogen’s top-seller, the multiple sclerosis drug Avonex, increased 7.1 percent to $753.2 million, while those for Tysabri, another drug for MS, increased 9.6 percent to $295.2 million.

Biogen said it is prepared to begin selling a pill for MS, BG-12, in the second quarter under the brand name Tecfidera, and is expecting to start selling two hemophilia medicines late this year.

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.