Biogen Idec Inc. soundly beat earnings estimates for the quarter by more than 16 percent. The company reported adjusted net income of $1.82 per share and Wall Street was looking for $1.56 per share.

Driving that solid performance in the second quarter was strong global sales of Avonex (interferon beta-1a) whose revenues increased 16 percent year-over-year to $762 million. Revenues from Tysabri (natalizumab) were in line with the second quarter of 2011.

Shares of Biogen (NASDAQ:BIIB) gained 25 cents Tuesday, to close at $139.48.

"We had an excellent second quarter, and the company is on track to achieve its financial, business and research and development goals for the year," Biogen CEO George Scangos said on the company's earnings call.

According to Robyn Karnauskas, analyst at Deutsche Bank, the Avonex sales were much "stronger than expected" beating the consensus estimates of $698 million.

Scangos attributed the increased sales of Avonex to renewed interest by physicians in the therapy following the launch of their Avonex Pen and dose titration regimen, designed to improve the administration of weekly Avonex in relapsing forms of MS.

Avonex Pen is the first intramuscular autoinjector approved for MS, incorporating a smaller needle and easier administration. The dose titration regimen gradually escalates the dose of Avonex at treatment initiation, reducing the incidence and severity of flu-like symptoms that can occur at the beginning of therapy. (See BioWorld Today, Feb. 29, 2012.)

The global sales of Tysabri were $395 million, below the Street's consensus estimates of $417 million. Although the U.S. sales were in line with the estimates, Biogen reported that ex-U.S. Tysabri sales were negatively impacted due to $16 million in deferred revenues that were accounted for at its Italian affiliate.

Based on prescribing data, Biogen estimated that at the end of June approximately 69, 100 patients were on commercial and clinical Tysabri therapy worldwide, and that cumulatively approximately 104,300 patients have ever been treated with the drug in the postmarketing setting.

For the second quarter, the company reported that total revenue increased 18 percent to $1.4 billion beating analyst estimates of $1.33 billion. Second quarter 2012 GAAP diluted EPS were $1.61, an increase of 36 percent over the second quarter of 2011. Non-GAAP diluted EPS for the second quarter of 2012 were $1.82, an increase of 34 percent over the second quarter of 2011. As of June 30, the company had approximately $2.9 billion in cash. The company also completed its $500 million share repurchase program for the purpose of retiring shares and returning capital to shareholders.

In addition to its multiple sclerosis franchise, RBC Capital Markets analyst Michael J. Yee wrote that Biogen has the "best long-term pipeline in large-cap biotech" as the company gears up for a busy second half of the year preparing for its oral MS candidate BG-12 (dimethyl fumarate) launch and pivotal trial data readouts. Biogen has filed for marketing approval for BG-12 both in the U.S. and Europe. In addition to filings in the U.S. and EU, the company filed in Canada, Switzerland and Australia in the second quarter for regulatory approval for BG-12.

In collaboration with Swedish Orphan Biovitrum AB, of Stockholm, Sweden, the company has started two global pediatric studies for their long-lasting recombinant Factor VIII (rFVIIIFc) and Factor IX (rFIXFc) Fc fusion proteins in hemophilia A and B. Both studies are designed to evaluate the safety, pharmacokinetics and efficacy of the drugs in previously treated children younger than 12. (See BioWorld Today, July 6, 2012.)

The company also said it is on schedule for Phase III data readout for dexpramipexole for amyotrophic lateral sclerosis (ALS). Based on those expectations Yee said Biogen Idec's shares will trade higher toward $150 in the second half of the year.

Biogen increased its 2012 non-GAAP EPS estimates to above $6.20 from its previous expectation of above $6.15. That compares to a consensus of $6.21. The company held firm on its full-year revenue guidance, with growth expected to be in the mid-single digits compared to 2011.