BioWorld Today Contributing Writer

Biogen Idec's revenues for 2010 exceeded the prior year by 8 percent, coming in at $4.7 billion. Tysabri drove much of the growth, with $900 million in revenues, and solid returns for Avonex and Rituxan. Throughout 2010, the company has pursued a strategy of whittling down nonperforming programs, in-licensing products in its areas of strength and expanding labeling and indications for its approved products, and shows every indication of continuing strong in 2011.

"2010 was a very good finish to a very good year," said George Scangos, CEO of Biogen Idec in a conference call Tuesday morning.

Sales of Tysabri (natalizumab) for multiple sclerosis (MS) increased 16 percent compared to 2009. Global in-market net sales were $1.2 billion, with $593 million in the U.S., and $637 million in the rest of the world. The company estimated that 56,000 patients are now taking Tysabri worldwide, and that cumulatively 78,800 patients have been treated with Tysabri.

Sales of Avonex (interferon beta-1a), for MS, increased 8 percent to $2.5 billion. Francesco Granata, vice president of global commercial operations said that the performance of the Avonex franchise in the U.S. has improved "tremendously." It increased for three consecutive quarters with sales around the 70,000 unit mark after four years of unit sales declines.

"This is thanks to our strong commercial leadership," he said. "Our 2011 goal now is to put our Avonex franchise back on a . . . growth trajectory."

Sales of Rituxan (rituximab), for non-Hodgkin's lymphoma decreased 2 percent to $1.1 billion due to expiration of royalties on sales outside the U.S.

Biogen Idec earnings per share increased 18 percent over 2009, to $3.94 and GAAP net income was $1 billion, which is a 4 percent improvement over 2009. The company reported non-GAAP diluted EPS of $5.15, which represents an increase of 25 percent over 2009.

The fourth quarter of 2010 also ended strong. Biogen Idec's Q4 revenues were $1.2 billion, which was 8 percent more than the company earned in the fourth quarter of 2009. The increase was, again, attributable mostly to growth of Tysabric revenues, which were $242 million in that quarter. Avonex contributed $654 million and Rituxan $258 million.

Biogen Idec reported cash of $2 billion as of Dec. 31. "Our strong 2010 performance was a result of a new way of working combined with exquisite execution," Granata said.

The company is tightening its R&D focus, discontinuing programs that don't seem to be leading to clear patient benefit. It is terminating its cardiovascular program and seeking to outlicense its oncology program. Meanwhile, it is increasing investment in neurology and has acquired rights (with Neuroimmune Holding AG) to three preclinical immunotherapy programs in neurodegenerative diseases including Parkinson's, Alzheimer's and amyotrophic lateral sclerosis. The relevant targets are alpha-synuclein, tau and TDP-43.

Biogen Idec's fourth quarter earnings beat consensus estimates by a modest margin. Consensus on non-GAAP EPS was $1.23 on revenues of $1.22 billion, and Biogen Idec made $1.42 on $1.17 billion.

Cowen and Co. analyst Eric Schmidt called it "another fine quarter" for the company, and said that its guidance for 2011 was "beatable." That guidance includes non-GAAP diluted EPS above $5.70 and capital expenditures in the range of $200 million to $220 million.

Schmidt said, "2011 guidance assumes no price increases, no share repurchases, and seemingly little contribution from Benlysta." Biogen Idec is entitled to a low single-digit royalty from Benlysta (belimumab), a lupus therapy, which has a PDUFA date coming March 10 and got a green light from its advisory panel in November. (See BioWorld Today, Nov. 17, 2010.)

Piper Jaffray is cautious on Biogen Idec's earnings. Analyst Ian Somaiya said that the group was remaining neutral on Biogen Idec stock, citing "poor" earnings with "upside largely driven by price increases and cost cutting."

"Major data points for drugs which we believe could be meaningful contributors to future growth (i.e., Peg-Avonex and hemophilia) are not expected for 9-12 months," Somaiya noted.

Leerink Swann, on the other hand, liked Biogen's earnings quite a lot. Joshua Schimmer wrote, "We see a strong pipeline, a strong management blending both operational execution experience and scientific expertise, a strong R&D engine and particular Phase III programs that could drive meaningful upside vs. our current assumptions."