Biogen Idec Inc. (BIIB): A Strong Growth Opportunity In Multiple Sclerosis

Biogen’s MS drugs account for about 30% of the roughly $12 billion global MS market. In addition to increased revenue generated by full ownership of Tysabri, Biogen hopes to expand the number of patients who can use the drug.  It is currently approved to treat patients with relapsing remitting multiple sclerosis, which accounts for about 75% of the patient population. Biogen is also testing the drug in patients with secondary progressive MS, which typically follows the relapsing-remitting form, the company said.

The Competition

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is a unique company thriving on generics on one hand and yet benefiting from its own proprietary drugs on the other. Teva is best known for its generic versions of off-patent drugs but, despite a perception that this stifles innovation, Teva is also working on developing branded drugs. Its blockbuster drug is Copaxone, which is a treatment for multiple sclerosis. In order to ward off potential competition Teva has filed a citizen’s petition with the FDA to try and delay approval of Biogen BG-12 treatment for MS, which, if approved, will compete directly against Copaxone.

French drug maker Sanofi SA (ADR) (NYSE:SNY) has said that the FDA will review Lemtrada, which is its experimental multiple sclerosis treatment. Genzyme, it’s U.S. biotech arm, said that the FDA will conduct a standard 10-month review and make a decision on the drug in late 2013. European Union regulators are also reviewing the drug. The early feedback on Aubagio, an MS drug approved in September 2012 released by the company, indicates that more than 8 out of every 10 U.S. multiple sclerosis specialists have prescribed the drug.

XenoPort, Inc. (NASDAQ:XNPT) is developing a pipeline candidate, XP23829, for the treatment of multiple sclerosis. It shares similarities with the Biogen BG-12 product, but it is believed that XP23829 could have better dosing and tolerability profiles.

Biogen is moving decisively to protect its multiple sclerosis franchise, and the Tysabri deal has the potential to generate profits on a long-term basis. The company has a strong drug pipeline on top of profitable already-approved drugs, and should continue to show strong growth. I recommend Biogen for its strong growth potential.

The article A Strong Growth Opportunity In Multiple Sclerosis originally appeared on Fool.com and is written by Jordo Bivona.

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