(By Balaseshan) Biogen Idec Inc. (NASDAQ: BIIB) reported a 17% 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 2.77% in premarket.
Earnings per share (EPS) grew 17% to $1.67. Adjusted earnings rose to $454.7 million or $1.91 per share from $394.5 million or $1.61 per share.
Revenue increased 6% to $1.39 billion.
Analysts, on average, had expected EPS of $1.59 per share on revenue of $1.38 billion for the third quarter.
Revenue from products increased 6.5% to $1.04 billion. Avonex revenue grew 8% to $736 million, while Tysabri revenue declined 1% to $275 million. Rituxan revenue from unconsolidated joint business arrangement climbed 8% to $288 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 of $6.40 to $6.50, while Street predicts EPS of $6.43. Previously, the company had projected adjusted EPS to exceed $6.20.
Biogen now anticipates 2012 revenue growth to be in the mid to high-single digits, while Street predicts 8.80% growth. Previously, the company had projected revenue growth in the mid-single digits range. 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%, R&D expense of about 24% to 25%, and SG&A expense of about 22% to 23% of total revenue.
BIIB closed Wednesday's regular session at $142.06. The stock has been trading between $106.31 and $157.18 for the past 52 weeks.