Biogen Inc. on Friday slashed its full-year revenue and earnings outlook as sales growth for its key multiple-sclerosis drug continues to weaken.
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Biogen (NASDAQ:BIIB) released its earnings data on Friday. The consensus estimates were for EPS of $4.10 and revenues of $2.71 billion.
In the second quarter, the Cambridge, Massachusetts-based company posted revenue of $2.59 billion, which missed Wall Street forecasts. The company lowered its guidance from an expected $15.45 a share to $15.85 a share in earnings. Analysts at Leerink Swann reiterated a “buy” rating and set a $512.00 price target on shares of Biogen in a research note on Thursday.
Overall, for the quarter ended June 30, Biogen reported a profit of $927.3 million, or $3.93 a share, up from $714.5 million, or $3.01 a share, a year earlier. The stock was sold at an average price of $410.00, for a total value of $1,574,810.00. Revenue growth is now expected to be in the range of 6% to 8% above 2014 revenues of $9.7 billion. Analysts at Bank of America upgraded shares of Biogen from a “neutral” rating to a “buy” rating and raised their price target for the stock from $391.23 to $466.00 in a research note on Tuesday, July 14th. Thomson Reuters had a consensus analyst price target of $471.75 before the report. Out of the 24 analysts covering the stock, 14 rate it a Buy, while rest suggest a Hold. The company’s revenue for the quarter was up 7.0% on a year-over-year basis.
“Our U.S. market research indicates a moderation in physician intent to prescribe, though in Q2 Tecfidera continued to gain patients in the U.S.”, Biogen chief commercial officer Tony Kingsley said on the call.
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Looking ahead to full year estimates, analysts have placed the consensus earnings per share estimate for the current year at $17.3. The Company discovers, develops, manufactures and markets therapies for the treatment of neurodegenerative diseases, hemophilia and autoimmune disorders. The Company’s marketed products include AVONEX, PLEGRIDY, TECFIDERA, TYSABRI, FAMPYRA for multiple sclerosis (MS), ALPROLIX for hemophilia B, and ELOCTATE for hemophilia A, among others.
