Post Earnings Coverage as Biogen Post 23% growth in EPS

LONDON, UK / ACCESSWIRE / July 22, 2016 / Active Wall St. announces its post-earnings coverage on Biogen Inc. (NASDAQ: BIIB). The company announced its Q2 FY16 financial results before the opening bell on Thursday, July 21, 2016. The biotech giant disclosed better-than-expected growth in its profits and revenues as sales were up on growth in its core multiple sclerosis (MS) drugs. The company also announced that Chief Executive George Scangos is stepping down. Additionally, the biopharmaceutical company upgraded its guidance for FY16 and unveiled a $5 billion share buyback program. Register with us now for your free membership at: http://www.activewallst.com/register/.

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Earnings Reviewed

For the period ending on June 30, 2016, Biogen posted GAAP net income of $1.05 billion, or $4.79 per share. On Non- GAAP basis, the company reported net income of $1.14 billion, or $5.21 per share. For Q2 FY16, Biogen’s Non- GAAP net income advanced 15%, while Non- GAAP EPS grew 23% on y-o-y basis. Non-GAAP EPS came in much ahead of the analysts’ consensus estimates of $4.71.

Biogen reported revenues worth $2.89 billion for Q2 FY16 a 12 rise % on y-o-y basis in comparison to revenues of $2.59 billion reported in Q2 FY15, surpassing analyst’ estimates of $2.79 billion.

The strong revenue growth was primarily attributed to the core franchise comprising MS drugs. Revenue from Tecifedra in MS unit, Biogen’s top selling drug, grew 12% on y-o-y basis to $987 million, while Total Interferon sales climbed 6% on y-o-y basis to $728 million in the latest quarter. Additionally, the company also posted strong growth in its Hemophilia division with sales of ELOCTATE® surging 68% to $125 million in Q2 FY16.

The company also stated that it has made important progress with the U.S. and E.U. approvals of ZINBRYTATM and the E.U. approval of FLIXABI®. The company has continued to enrol two Phase 3 clinical trials for aducanumab in early Alzheimer’s disease. Furthermore, its collaboration partner Ionis Pharmaceuticals has completed enrolment in two Phase 3 studies of nusinersen in infants and children with spinal muscular atrophy.

CEO Departs

In another major announcement, the biotech giant revealed that Mr. George Scangos is leaving the helm of the company in the coming months. Biogen will start the search for his successor immediately, and until then he will remain a part of the company. Mr. Scangos became Biogen CEO in 2010, when the company was called Biogen Idec, and presided over the introduction of Tecfidera.

“The board and I recognize that this is an excellent time for a transition,” Scangos said on a call with analysts on Thursday, July 21, 2016.

Guidance and Share Repurchase

Biogen also revised its FY16 outlook as the biopharma company now expects to generate annual revenue in the $11.2 billion to $11.4 billion range compared to the prior guidance of $11.10 to $11.30. The company expects Non-GAAP EPS to come in the range of $19.70 and $20.00, significantly above the prior one of $18.30 and $18.60. Analysts were expecting Non-GAAP EPS of $18.96 on revenues of $11.28 billion.

Furthermore, Biogen’s Board approved a new share buyback program worth up to $5 billion, which is to be executed in the coming three years.

Stock Performance

Biogen’s shares surged 7.64% to close Thursday’s trading session at $282.45, with a total of 5.54 million shares changing hands. The company’s stock has surged 21.22% in the past one month.

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