Biogen Idec Inc. (BIIB) Bounces Higher

Another big driver of Biogen Idec Inc. (NASDAQ:BIIB)’s success comes from its new multiple sclerosis tablet, Tecfidera. The FDA approved Tecfidera on March 27, so there wasn’t any revenue to report in the first quarter. However, I expect we’ll begin seeing nice initial sales numbers beginning in the second quarter, and things should really take off from there.

I’ll be quite surprised if Tecfidera doesn’t top sales of rival multiple sclerosis pills from Novartis AG (ADR) (NYSE:NVS) and Sanofi SA (ADR) (NYSE:SNY). Analysts expect Novartis’ Gilenya to reach sales of $2.3 billion by 2016. Credit Suisse thinks that Sanofi’s Aubagio will hit peak annual sales of $1.2 billion. However, Tecfidera’s safety profile gives it a leg up in my view.

Biogen’s pipeline also looks very promising. The company recently submitted Biologic License Applications, or BLAs, to the FDA for two biologics, one treating hemophilia A and the other for hemophilia B. I think both have strong chances for ultimate approval.

All in all, things look very good for Biogen Idec Inc. (NASDAQ:BIIB) right now. My suspicion is that the terrific run this biotech has had thus far in 2013 has a long way to go.

The article Biogen Bounces Higher on Q1 Results originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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