(Reuters) - Biogen Inc (BIIB.O) reported far better-than-expected second quarter profit on Tuesday, driven by strong demand of its Spinraza muscle disease treatment, and the U.S. biotech company raised its full-year profit forecast.
FILE PHOTO: A sign marks a Biogen facility in Cambridge, Massachusetts, U.S. January 26, 2017. REUTERS/Brian Snyder/File Photo
The company also expressed renewed confidence in its experimental Alzheimer’s disease programs, and its shares opened at a more than three-year high. They were up 5.2 percent at $376.71.
The results come a day ahead of presentation at an Alzheimer’s meeting of details of a study of BAN2401 by partner Eisai Co Ltd (4523.T) after the companies said it slowed disease progression at the highest dose. Eisai told Reuters a Phase III planning was underway.
“General positive commentary on Alzheimer’s BAN2401 keeps investors optimistic about data tomorrow,” Jefferies analyst Michael Yee said.
Spinraza sales more than doubled to $423 million, putting it on track to become a bona fide blockbuster. That comfortably exceeded analysts’ estimates of $393.8 million, according to Thomson Reuters data.
Biogen said it is working to add adult patients and expand international sales of Spinraza, which has a list price of $750,000 in the first year of treatment.
Excluding items, Biogen earned $5.80 per share, sailing past average analysts’ estimates of $5.21. Revenue rose 9 percent to of $3.4 billion, also topping Wall Street estimates.
Biogen raised its full-year adjusted profit forecast to $24.90 to $25.50 per share from $24.20 to $25.20. It now sees 2018 revenue of $13 billion to $13.2 billion, up from its prior view of $12.7 billion to $13.0 billion.
“Biogen’s increase on top-line guidance conveys confidence that its product portfolio will continue to perform throughout the year,” Cowen analyst
