“Through the first three quarters of 2012, Biogen Idec is on track to accomplish what we set out to do at the beginning of the year,” said George A. Scangos, Ph.D., chief executive officer. “We have enhanced our leadership position in the multiple sclerosis market with strong results from AVONEX and TYSABRI; we have advanced our late-stage pipeline, with positive results from the registrational study for factor IX in hemophilia B; and we continue preparations for the potential launch of BG-12 next year. We look forward to data readouts for factor VIII in hemophilia A soon, followed by dexpramipexole in ALS and PEGylated interferon in relapsing MS in the coming months. Our hard work is reflected in this quarter’s results.”
TYSABRI Patient Growth
Based upon data available to us through the TOUCH ® prescribing program and other third party sources, as of the end of September 2012, we estimate that approximately 71,100 patients are on commercial and clinical TYSABRI therapy worldwide, and that cumulatively, approximately 108,300 patients have been treated with TYSABRI in the post-marketing setting.
Other Products and Royalty RevenuesRevenues from other products in the third quarter of 2012 were $28 million, compared to $17 million in the third quarter of 2011. Table 4 provides individual product revenues. Royalty revenues were $47 million in the third quarter of 2012, compared to $52 million in the third quarter of 2011. For the third quarter of 2012, corporate partner revenues were $12 million, compared to $16 million in the third quarter of 2011. Updated 2012 Financial Guidance Biogen Idec also updated its full year 2012 financial guidance. This guidance consists of the following components:
- Revenue growth is expected to be in the mid to high-single digits versus 2011.
- Cost of Sales is expected to be approximately 9 percent to 10 percent of total revenue.
- R&D expense is expected to be approximately 24 percent to 25 percent of total revenue. R&D expense is inclusive of approximately $20 to $30 million of a potential upfront payment in the fourth quarter earmarked for a discovery collaboration which we are in the process of negotiating.
- SG&A expense is expected to be approximately 22 percent to 23 percent of total revenue.
- Tax expense is expected to be approximately 23 percent to 25 percent of pretax income.
- Non-GAAP diluted EPS is expected to be between $6.40 and $6.50.
- GAAP diluted EPS is expected to be between $5.63 and $5.73.
- Capital expenditures are expected to be in the range of $230 to $250 million.