Biotechnology giant Biogen (BIIB) reported second-quarter results that exceeded analysts’ estimates, pushing the shares up more than 5% during pre-market trading. Total revenue came in at $3.4 billion, up 9% year-over-year, driven mainly by growth in the company’s SPINRAZA revenue. Analysts had expected revenue to come in at $3.26 billion for the quarter.
Profit for the quarter attributable to the company, on a reported basis, was $867 million, increasing marginally by 0.4%, while on a per share basis, Biogen reported EPS of $4.18, up 2.7% year-over-year.
Adjusting for special items, EPS attributable to Biogen was $5.80, jumping 15% from a year ago. Analysts had expected adjusted earnings to come in at $5.26 per share.
On the business development side, the Massachusetts-based biotech company said that today it acquired ALG-801 (Phase 1a) and ALG-802 (preclinical) from AliveGen, Inc. The acquisition includes an upfront payment of $27.5 million, and the company may pay up to $535 million in additional potential development and commercialization milestones across both assets and multiple indications.
Also in July, Biogen completed enrollment in the Phase 3 studies of aducanumab, Biogen’s antibody candidate for Alzheimer’s disease.
“We saw an increase of over 20% in the number of adult Spinraza patients in the US versus last quarter, as we work to increase access and adoption in older patients. In addition, we have made advancements in Alzheimer’s disease, with the completed enrollment in the aducanumab Phase 3 studies and encouraging topline data for BAN2401,” said Michel Vounatsos, CEO.
Backing the strong results, Biogen updated its fiscal 2018 financial guidance with revenue now expected in the range of $13 billion to $13.2 billion, up from the earlier guidance of $12.7 billion to $13.0 billion.
GAAP EPS expectation was also raised to the range of $21.80 to $22.40, compared to the prior expectation of $22.20 to $23.20. On an adjusted basis, diluted EPS is now expected in the range of $24.90 and $25.50, up from the prior guidance of $24.20 to $25.20.
For the 52-week period, Biogen stock soared more than 25%, while since January the stock increased 7%, especially riding on the success of the company’s experimental Alzheimer’s drug in July. This news had lifted the shares more than 19%.