Biogen shares rose 3% to $182.83 following the FDA's announcement that it had approved the drug, which will be sold under the brand name Tecfidera.
Tecfidera is the third MS pill to be approved in the U.S. following Novartis' (NVS) Gilenya and Sanofi's (SNY) Aubagio, but Tecfidera sales are expected to top them all and even compete against the long-approved injectable therapies.
Analysts, on average, are forecasting Tecfidera sales to reach $3.25 billion in 2017, according to Bloomberg."Looking forward, based on physician feedback... and our prior survey work, we expect a solid launch of Tecfidera and our sense is that there is a bolus of patients in the queue ready to transition to therapy at high volume MS centers. However, we believe that Street expectations likely already account for this and then some," said J.P. Morgan biotech analyst Geoff Meacham, in a note to clients Wednesday afternoon. ISI Group analyst Mark Schoenebaum says investors are expecting Biogen to price Tecfidera at $51,000 and generate $291 million in 2013 U.S. sales. Last Friday, Tecfidera also won a recommendation for approval from European regulators. -- Reported by Adam Feuerstein in Boston. Follow @AdamFeuerstein
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV