Biogen Idec Inc. (BIIB): Will This Company Dominate the Multiple Sclerosis Market?

Bayer’s Betaseron is used to treat reduction of relapses in multiple sclerosis patients. During the first quarter of 2013, Betaseron /Betaferon reported sales of $335 million, a decrease of 8% year over year; resulting from lower volumes mostly in the US and Brazil and the effect of exchange rate variation. In first quarter 2013, Bayer as a group reported sales of $13.6 billion, an increase of 2% compared to same period in 2012. Adjusted (Core) EPS was $2.25 compared to $2.12 during same period in 2012.

Performance

In addition to encouraging clinical results for Plegridy, Biogen has also performed well in the first quarter of 2013. The company reported total revenues of $1.4 billion; up by 10% compared to the first quarter of last year, due to a 12% rise in revenue from product sales. The gain in product sales was primarily due to 13% year-over-year increase in Avonex sales as well as 9% increase in sales of Tysabri from both domestic and international markets.

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Furthermore, the company reported a significant upward movement in adjusted EPS during the first quarter of 2013. In the same period, non-GAAP diluted EPS were $1.97, up by 41% compared to the same period of 2012.

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Conclusion

Biogen Idec Inc. (NASDAQ:BIIB) gained top-line growth driven by the performance of marketed products including Avonex and Tysabri; and the continued positive clinical data from their late-stage pipeline products is expected to provide growth in future. Overall, Biogen will have a strong portfolio going forward to sustain long-term treatment options for multiple sclerosis, from earliest stages through later stages. This bottom-up approach in a well-differentiated segment is what makes Biogen so interesting to investors.

The article Will This Company Dominate the Multiple Sclerosis Market? originally appeared on Fool.com and is written by Kanak Kanti.

Dr. Kanak Kanti De has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Kanak is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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