If you thought that the great run so far in 2013 was over for Biogen Idec Inc. (NASDAQ:BIIB), think again. Shares soared more than 40% year to date before beginning to pull back somewhat over the last few days. However, the biotech’s just-announced first-quarter results should keep the stock rolling. Shares were up 3% in midday trading. Here are the highlights.
By the numbers
Biogen Idec Inc. (NASDAQ:BIIB) reported first quarter non-GAAP diluted earnings per share of $1.97, up 41% compared to the first quarter of 2012. That result easily topped the average analyst estimate of $1.61. Non-GAAP net income was $469 million, 39% higher than the figure from first quarter of 2012.
GAAP diluted earnings per share for the quarter came in at $1.79, an increase of 43% year over year. The company reported GAAP net income of $427 million, a gain of 41% compared to the same quarter last year.
Total revenue for the last quarter increased 10% year over year to $1.4 billion. This result was roughly in line with the average analyst revenue estimate of $1.42 billion.
The biotech boasted a nice cash stockpile as of the end of the first quarter. Biogen Idec Inc. (NASDAQ:BIIB) reported over $3.6 billion in cash, cash equivalents, reverse repurchase agreements, and marketable securities as of March 31. However, that amount was reduced just a few days later with the $3.25 billion acquisition of full rights for Tysabri from Elan Corporation, plc (ADR) (NYSE:ELN).
Behind the numbers
These solid results stemmed primarily from Biogen’s top two products — Avonex and Tysabri. Avonex sales during the first quarter totaled $746 million. That’s up 13% from the same quarter in 2012.
Tysabri wasn’t far behind, with 9% year-over-year growth. Sales of the biotech’s second-highest grossing multiple sclerosis drug came in at $312 million for the quarter.
Combined sales of Fampyra and Fumaderm during the first quarter totaled $38 million. This result was 35% higher than the $28 million recorded in the same quarter of 2012.
The only negative news came from Rituxan. Sales for the drug declined 7% from the first quarter of 2012, to $265 million. This drop reflected a $42 million hit that Biogen Idec Inc. (NASDAQ:BIIB) took related to damages assessed against its partner Genentech from arbitration with Hoechst GmbH.
Biogen upped its full-year earnings guidance to a range of $7.80 to $7.90 per share, from $7.15 to $7.25 per share given earlier. The company also announced 2013 revenue growth expectations of 16% to 18%, significantly higher than the 10% figure provided previously.
There are a several factors that I think portend a continued bright future for Biogen. First, I like that the company bought full rights to Tysabri from Elan. It will split profits with Elan through April 30, and then pay royalties going forward.