(By Balaseshan) Biogen Idec Inc. (NASDAQ:BIIB) reported a 34% jump in quarterly earnings helped by double-digit sales growth from its main products Avonex and Rituxan. Results exceeded Street's expectations, sending its shares up 2.65% in premarket.
Profit jumped 34% to $386.85 million for the second quarter, while earnings per share (EPS) climbed 36% to $1.61. Adjusted earnings rose to $439.1 million or $1.82 per share from $332.3 million or $1.36 per share.
Revenue grew 18% to $1.42 billion.
Analysts, on average, had expected EPS of $1.56 per share on revenue of $1.33 billion for the second quarter.
Revenue from products increased 12.6% to $1.08 billion. Avonex revenue grew 15.6% to $762.07 million, while Tysabri revenue marginally declined 0.3% to $280.42 million. Rituxan revenue from unconsolidated joint business arrangement climbed 31% to $284.63 million.
The company generates almost all of its earnings from sales of three products: Avonex and Tysabri for the treatment of multiple sclerosis and Rituxan for non-Hodgkin's lymphoma.
Looking ahead into the fiscal 2012, the company now expects adjusted EPS to be above $6.20, while Street predicts EPS of $6.22. Previously, the company had projected adjusted EPS to exceed $6.15.
Biogen still anticipates 2012 revenue growth in the mid-single digits range, while Street predicts 6.70% growth. Capital expenditures are still expected to be $230 million to $250 million.
The company still anticipates 2012 cost of sales of about 9% to 10% of total revenue, R&D expense of about 24% to 25% of total revenue, and SG&A expense of about 22% to 23% of total revenue.
BIIB closed Monday's regular session at $139.23. The stock has been trading between $83.83 and $147.49 for the past 52 weeks.