Biogen Inc. (NASDAQ: BIIB) reported its fourth quarter financial results for fiscal year 2017. The U.S. drug-maker fell short on earnings estimates, but topped revenue estimates, sending shares 3 percent higher during Thursday’s pre-market hours.
For the fourth quarter, Biogen reported revenue of $3.3 billion, increasing 15 percent year over year, and beating analysts’ estimates by $230 million. Biogen reported an EPS of $5.26, increasing 4 percent year over year, but falling short of analysts’ estimates of $5.07.
Strong sales growth in Spinraza significantly contributed to Biogen’s net sales, as Spinraza sales increased 34 percent quarter over quarter to $363 million. Tecfidera sales increased 7 percent year over year to $1.07 billion.
Biogen says it faces competition in its multiple sclerosis field, but still expects growth throughout 2018.
Its MS portfolio grew 4 percent year over year to $9.1 billion, but overall sales of Avonex and Tysabri fell in year over year fourth quarter sales. But Tysabri sales remained flat for the full year at $2 billion, while Avonex fell 7 percent.
Biogen also reported a charge of $1.6 billion due to the U.S. tax reform that cut corporate tax rates.
“2017 was a year of strong execution at Biogen,” said Michel Vounatsos, Biogen’s Chief Executive Officer. “With a renewed focus on our strategic priorities, we delivered record full year revenues, solid earnings, and significant progress in strengthening the foundation for our future with seven additions to our neuroscience pipeline in 2017.”
“Our core MS business demonstrated resilience in an increasingly competitive market, and SPINRAZA has had one of the most successful rare disease launches of all time, bringing new hope to patients and their families. We are also proud of our achievements in business development, with 2017 being one of the most productive years in Biogen’s history.” added Vounatsos.
Biogen also acquired Karyopharm’s phase 1 ready KPT-350 on Thursday, a treatment for neurological conditions for $10 million and up to $207 million in milestones, and additional payments of royalty and sales.
For fiscal year 2018, Biogen forecasts revenue to be in the range of $12.7 billion and $13 billion. The company expects an EPS between $24.20 and $25.20. Thomson Reuters analysts’ forecast revenue of $12.7 billion and an EPS of $24.16.