Biogen Idec Inc. reported second-quarter revenues of $773 million and earnings of 70 cents per share, both beating analyst estimates.
The Cambridge, Mass.-based company also increased guidance numbers for the year, saying that it now expects non-GAPP earnings of $2.60 to $2.70 per share and revenue growth of 16 percent to 18 percent over the 2006 total. Biogen Idec's stock (NASDAQ:BIIB) bucked a down day on Wall Street Tuesday, closing up $1.49 at $56.24.
The $773 million in revenues was a 17 percent increase from the $660 million reported in the second quarter last year. Most of the total came from $462 million in sales of Avonex (interferon beta-1a) for multiple sclerosis, up 8 percent from last year; revenues of $231 million from Rituxan (rituximab) sales, up 12 percent; and $48 million in revenues from the $72 million total second-quarter sales of the MS drug Tysabri.
Revenues on Rituxan, sold for treating certain lymphomas and rheumatoid arthritis, came from Biogen's share of profits under a co-promotion deal with Genentech Inc., which recognizes product sales. U.S. net sales of Rituxan were $582 million in the second quarter, up from $526 million a year earlier.
The Tysabri revenue consisted of $25.2 million in European sales and $22.3 million related to product sold through partner Elan Corp. plc in the U.S. (based on $46.8 million of U.S. sales). As of mid-July, Biogen said, about 13,000 patients worldwide were on Tysabri therapy, with another 1,000 taking the drug in clinical trials.
Second-quarter 2007 non-GAAP diluted earnings per share were 70 cents, an increase of 23 percent over the comparable 2006 number. Non-GAAP net income for the second quarter was $240 million, an increase of 22 percent over $197 million last year. On a GAAP basis, second-quarter earnings were 54 cents per share while net income was $186 million.
"We are quite pleased with our second-quarter performance," James Mullen, Biogen Idec's CEO, said in a news release. "Fueled by the strong uptake of Tysabri, we hit a new corporate milestone as our MS franchise exceeded $500 million in quarterly revenue for the first time. We successfully completed our $3 billion share repurchase while continuing to advance and strengthen our pipeline, particularly with the anticipated addition of the late-stage lixivaptan compound."
Biogen Idec recently licensed rights to lixivaptan from Cardiokine Inc. in a potential $220 million deal that had a $50 million up-front component.
The oral vasopressin receptor antagonist is expected to enter Phase III trials later this year for treating the electrolyte disorder hyponatremia in patients with congestive heart failure and other conditions. (See BioWorld Today, July 3, 2007.)
The company reported about 343 million shares outstanding for the first half of the year. As part of a completed share repurchase program of $3 billion in stock at $53 per share, that figure is expected to drop to 290 million to 296 million shares out for the second half of the year. Biogen Idec had about $1.8 billion in cash and equivalents as of June 30.
In other earnings news:
• Amylin Pharmaceuticals Inc., of San Diego, reported revenues of $197 million for the second quarter, including net product sales of $167.3 million for its diabetes drugs. Its net loss was $45 million, or 34 cents per share, for the quarter. The total included $152.1 million in sales of Byetta (exenatide) injection and $15.2 million in sales of Symlin (pramlintide acetate) injection. Those figures compare to sales of $98.6 million for Byetta and $10.2 million for Symlin in the year-ago period. As of June 30, Amylin had cash and short-term investments of about $1.1 billion. Its stock (NASDAQ:AMLN) gained $1.85 Tuesday to close at $44.93.