(Reuters) – Biogen Idec Inc on Monday reported $286 million in third-quarter sales of its high-profile new multiple sclerosis drug Tecfidera, providing fresh evidence that the medicine is off to an impressive launch and exceeding expectations.
The company also reported higher-than-expected third quarter earnings and raised its full year profit and revenue forecasts, and its shares rose more than 3 percent.
In just its second quarter on the market, Tecfidera sales easily topped Wall Street analysts’ increased forecasts of between $205 million and $235 million. It had chalked up sales of $192 million in its first quarter on the market, blowing past initial Wall Street estimates of about $66 million.
“Tecfidera crushed (expectations),” ISI Group analyst Mark Schoenebaum said of the drug in a research note. “This is really, truly incredible.”
Tecfidera is the third oral MS drug to market after Gilenya from Novartis and Sanofi’s Aubagio, but is widely expected to dominate the class. According to IMS, which provides data on prescription medicines, it has already laid claim to being the leading oral drug for multiple sclerosis after just six months, Biogen said.
Analysts consider the drug to be Biogen’s most important future growth driver and forecast eventual peak annual sales in excess of $3 billion.
The U.S. biotechnology company said net profit for the quarter rose to $488 million, or $2.05 per share, from $398 million, or $1.67 per share, a year before.
Excluding items, Biogen had adjusted earnings of $2.35 per share, topping analysts’ average expectations by 25 cents, according to Thomson Reuters I/B/E/S.
Biogen said it now expects 2013 earnings, excluding items, of $8.65 to $8.85, up from its prior forecast of $8.25 to $8.50 per share. Wall Street is forecasting earnings of $8.62 per share for the year.
Biogen now sees full-year revenue growth of 23 percent to 25 percent. It had previously projected growth of 22 percent to 23 percent.
Revenue for the quarter rose 32 percent to $1.8 billion, edging past Wall Street estimates of $1.78 billion.
Sales of Biogen’s older injectable MS drug Avonex decreased slightly to $733.4 million from $736.2 million a year ago, as the drug likely lost some sales to the company’s own new medicine.
Biogen reported a 46 percent increase in sales of its other injectable MS drug Tysabri to $401 million, largely due to the company’s acquisition of the portion of the medicine held by Irish drugmaker Elan Corp earlier this year. Biogen now owns full rights to Tysabri.
The company also recorded $303 million from its portion of sales of Rituxan, the blood cancer drug it shares with Roche Holding AG.
Biogen Idec shares rose to $2.61 in premarket trading after closing at $252.26 on Nasdaq on Friday. The company’s shares were already up about 70 percent this year, largely due to Tecfidera enthusiasm.
(Reporting by Bill Berkrot- Editing by Gerald E. McCormick, Chizu Nomiyama and Krista Hughes)
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