- Biogen jumped about 2% in early trading on Tuesday after beating estimates and raising guidance for the rest of 2019.
- The company’s multiple sclerosis therapy led the company’s 72% revenue growth in the second quarter. The treatment brought in $US100 million more than analysts’ consensus estimate.
- The earnings beat comes as shares are down about 35% over the last 12 months. Biogen plummeted on March 21 after it announced its Alzheimer drug would be discontinued after failing late-stage trials.
- Watch Biogen trade live here.
The company’s improved outlook follows a 72% quarterly profit jump, led by its multiple sclerosis therapy product. The therapy, Tecfidera, brought in $US1.15 billion in sales, beating the $US1.05 billion estimate.
The Tuesday morning report also announced adjusted earnings per share of $US9.15, blowing past Wall Street’s $US7.53 estimate.
The positive news follows a drop of about 35% in the shares’ value over the last 12 months, representing a loss of about $US30 billion in market cap. Biogen shares fell more than 29% on March 21 after the company announced its Alzheimer drug failed late-stage trials and would be discontinued.
Biogen said it expects yearly revenue to land between $US14 billion and $US14.2 billion, up from previous estimates ranging from $US13.6 billion to $US13.8 billion.
Biogen shares closed at $US232.48 Monday. The company has 6 “buy” ratings, 25 “hold” ratings, and 2 “sell” ratings from analysts and a 12-month price target of $US254.52 per share, according to Bloomberg data.
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