Biogen Inc. (BIIB) beat market expectations on revenue and earnings for the third quarter of 2018. Total revenues grew 12% to $3.4 billion from the prior-year period, helped by strength in SPINRAZA and biosimilars, as well as OCREVUS royalties.
On a GAAP basis, net income grew 18% to $1.44 billion and EPS grew 24% to $7.15 year-over-year. Adjusted net income grew 12% to $1.49 billion and adjusted EPS grew 17% to $7.40. Earnings in the quarter benefited from a lower tax rate and a lower share count.
Total product revenues grew 6% to $2.78 billion. The company’s core multiple sclerosis (MS) business remained stable during the quarter while SPINRAZA benefited from higher patient demand both within and outside the US. Biogen is trying to expand its pipeline beyond its MS and Alzheimer’s portfolios and made progress in stroke, progressive supranuclear palsy and ALS during the third quarter.
In multiple sclerosis, TECFIDERA revenues improved 2% year-over-year. In spinal muscular atrophy, SPINRAZA revenues rose 73% while in biosimilars, revenues grew 33%. Revenues declined for all the other products on a year-over-year basis. During the quarter, channel inventory levels in the US remained stable for TECFIDERA, AVONEX and PLEGRIDY combined.
Biogen recorded SPINRAZA revenues in over 30 countries during the third quarter. On a sequential basis, the number of commercial patients receiving SPINRAZA grew around 11% in the US and around 29% internationally.
In the third quarter, the company’s board authorized a program to repurchase up to $3.5 billion of its common stock. As of September 30, Biogen had cash, cash equivalents and marketable securities totaling approx. $5.7 billion and around $5.9 billion in notes payable.
Biogen’s shares were up 2.5% in early trading hours on Tuesday. The stock is up 2% thus far this year.