Biogen Idec today reported higher-than-expected first quarter profit, helped by low taxes and sales growth of its injectable multiple sclerosis treatments.
The US biotechnology company also raised its full-year forecast.
Biogen said it now expects earnings, excluding items, of $7.80 to $7.90 per share, up from its prior view of $7.15 to $7.25 per share.
The company now sees full-year revenue growth of 16-18%. It had previously projected 10% growth. Analysts are estimating adjusted earnings of $7.81 per share on revenue of $6.44 billion.
Biogen said it earned $426.8m, or $1.79 per share, in the first quarter, up from $302.7m, or $1.25 per share, the same time last year.
Elan sold its 50% interest in MS drug Tysabri for $3.25 billion plus royalty rights to Biogen Idec in February. Under the deal, Elan's royalty payments will be 12% of sales in the first year, 18% after that, and 25% when annual sales rise above $2 billion.
Today's results mark the last quarter before Biogen results will include sales of its new oral multiple sclerosis drug Tecfidera, which won US approval in late March and is expected to be Biogen's most important future growth driver; analysts estimate eventual peak sales in excess of $3 billion.
The drug is expected to gain European approval during the current quarter, the company said.
The quarterly results were helped by a $33m tax benefit and other tax credits that added 16 cents a share to net profit. Its tax rate for the quarter was 13.2%.
Total revenue for the three month period grew 10% to $1.42 billion, matching Wall Street expectations.
