Alexion Pharmaceuticals, Inc. (ALXN), Celgene Corporation (CELG): Biotech Favorites With Noteworthy Drug Data

Closely Watched Drug Launch Delivers

For its second quarter, sales totaled $1.7 billion, representing growth of 21% year-over-year. While there are many important drugs to Biogen Idec Inc (NASDAQ:BIIB), investors were most interested in its new multiple sclerosis drug Tecfidera.

Tecfidera is expected to produce peak global sales in excess of $4 billion annually by 2018, and Biogen Idec Inc (NASDAQ:BIIB)’s second quarter was our first glance at the drug’s performance. Analysts’ consensus for Tecfidera’s first quarter of launch predicted $90 million in sales, but Biogen Idec Inc (NASDAQ:BIIB) doubled that number with $192 million.

Tecfidera’s peak sales alone will double Biogen Idec Inc (NASDAQ:BIIB)’s last 12 months of revenue. Therefore, the drug’s performance is very encouraging, and suggests faster-than-expected fundamental growth for Biogen Idec Inc (NASDAQ:BIIB) in the future.

Conclusion

Of these three biotech favorites to already report earnings, sales for Tecfidera are without question the biggest headline thus far.

Tecfidera has the most upside and is the most important to its company’s future fundamental growth. However, all the drugs mentioned above are important. Celgene Corporation (NASDAQ:CELG)’s Pomalyst is a dark horse to produce growth, and Revlimid’s sales suggest continued investor confidence.

Lastly, Soliris’ deceleration of growth is a reason to worry. Celgene Corporation (NASDAQ:CELG) and Biogen have other marketed products; Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) relies solely on Soliris’ growth to support its valuation.

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) trades with the greatest premium to sales among these three biotechs. Therefore, I view Alexion as too expensive, and wouldn’t touch it. However, both Celgene and Biogen’s top-line growth is looking very attractive after earnings.

Sherrie Stone has no position in any stocks mentioned. The Motley Fool recommends Celgene. Sherrie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Biotech Favorites With Noteworthy Drug Data originally appeared on Fool.com is written by Sherrie Stone.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.