Biogen Idec Inc.'s third quarter earnings fell short of analyst expectations, though the firm assured investors that it was on track to meet its overall guidance for 2007.

The Cambridge, Mass.-based company reported total revenues of $789 million for the quarter, a 12 percent increase over the prior year, driven primarily by sales of Avonex (interferon beta-1a), Rituxan (rituximab) and Tysabri (natalizumab). Analysts, however, had predicted revenues of $803 million for the three-month period, and Biogen CEO James Mullen said the "major disappointment" was Avonex, which posted weak sales in late summer, though "it rebounded nicely in September."

Overall, Avonex sales grew 2 percent to $455 million. Sales of Rituxan totaled $235 million, while Tysabri sales increased to $93 million. Based on its collaboration with Irish firm Elan Corp., Biogen recognized Tysabri revenue of $63 million.

During the conference call, Mullen also commented briefly on Biogen's recent announcement that it was seeking a potential buyer, but declined to provide any specifics on the company's progress or timetable. But analyst Joel Sendek, of New York-based Lazard Capital Markets, who maintained a "hold" rating on the firm's stock, said he anticipates an acquisition decision "by early 2008." (See BioWorld Today, Oct. 16, 2007.)

Biogen's non-GAAP net income, which excludes such items as purchase accounting and merger-related account impacts and stock option expenses, totaled $170 million, or 58 cents per share, below analyst estimates of 65 cents per share. On a GAAP basis, Biogen reported net income of $119 million, or 41 cents per share.

The company, which ended the quarter with a cash position of $671.3 million, reiterated its guidance for the year, including total revenue growth of 16 percent to 18 percent over 2006 and projections of non-GAAP earnings per share in the range of $2.60 to $2.70. Biogen anticipates that the 2007 capital expenditures will be in the range of $250 million to $300 million.

Shares of Biogen (NASDAQ:BIIB) dropped $1.18 Tuesday to close at $78.93.