(By Nitika) Biogen Idec Inc., Massachusetts' largest biotech, is scheduled to report December 2009 quarter (Q4 2009 & Full Year 2009) results on Tuesday, February 9, 2010. In the last four quarters ending September 2009, the company's earnings bettered analysts' estimates comfortably.
Biogen Idec is a biopharmaceutical company engaged in the process of discovering, developing, manufacturing, and commercializing the therapies in the areas of oncology, neurology and immunology. The company's key products include TYSABRI (natalizumab), AVONEX (Interferon beta-1a), and RITUXAN (rituximab). The company primarily operates in the US and Europe. The company operates in one reportable segment. It has four marketing products: Avonex (interferon beta-1a), Rituxan (rituximab), Tysabri (natalizumab) and Fumaderm (dimethylfumarate and monoethylfumarate salts).
In the previous quarter, the company reported EPS of $0.95 on revenue of $1,120 million compared to EPS of $0.71 on revenue of $1,092 million in the same quarter previous year. The increase in revenue and earnings is attributable to AVONEX performance in the international markets where it continued to gain market share. However, AVONEX performance in the US is disappointing with market share losses. In addition to AVONEX, the company's strong performance is also attributable to increasing TYSABRI (a promising new drug to treat relapsing multiple sclerosis) global end market net sales performance. However, the company has acknowledged 28 cases of Tysabri patients contracting a rare brain infection known as progressive multifocal leukoencephalopathy, or PML, with disclosure of the latest four cases coming last month.
Analysts' estimates for the quarter ending December 2009 range from a low of $0.96 to a high of $1.1, compared to a consensus estimate of $1.048. The consensus EPS forecast has decreased over the past week from $1.050 to $1.048 (-0.19%) and decreased over the past month from $1.057 to $1.048 (-0.85%). Of the 20 analysts making quarterly forecasts, 1 raised and 4 lowered their forecast. Consequently, for the fiscal year ending December 2009, the consensus EPS forecast has decreased over the past week from $3.975 to $3.945 (-0.75%) and decreased over the past month from $3.986 to $3.945 (-1.03%). Of the 20 analysts making yearly forecasts, 1 raised and 3 lowered their forecast. .
Since 2001, the company's revenues and earnings show both sequential quarter and same quarter previous year increases. BIIB is a relatively small and fast growing company and can sustain high growth for some more considerable time.
In December, the company increased its offer to purchase all of the outstanding shares of Facet Biotech Corporation (NASDAQ: FACT) to $17.50 per share in cash, representing an increase of $3.00 per share, or 21%, over its previous offer. Biogen described this as the best and final offer. But the offer was rejected. It is time for Biogen to either acquire a similar company or be split into two.
The stock closed Monday at $53.91, compared to the 52 week range of $41.75 and $55.37. In the last one year the share price has gained more than 10.8%. The stock is trading at a reasonable PE of 18.03 which is likely to go down to 14 by end 2010. The company's earnings may not support a price in excess of $52 in the next two quarters.
