On Sept. 6, Biogen stock was up 2% for the year after a gigantic 40% move off the bottom. But since then, the stock has been sliding down. Year to date the stock is down 9.6%. What's going on?
Two weeks ago, Biogen reported a very strong quarter. The company had third-quarter earnings of $5.19 per share, 21 cents ahead of consensus estimates. Revenue rose 6.4% to $2.96 billion. The company's multiple sclerosis therapy, Tecfidera, posted sales of $1.034 billion, up 10%. The interferon business was also up 10% to $708 million, lead by Avonex, which was up 15% to $580 million. Tysabri reported revenue of $515 million, up 7%, and Plegridy grew 28% to $128 million.
Management said the global market share of Tecfidera is 15% and the U.S. patient population is stable at 20% of market share. In Europe, the number of patients using Tecfidera increased by 30%.
While Tecfidera sales benefited by a $40 million to $50 million inventory build in the quarter, Tecfidera sales would have still beat the consensus estimate. Foreign exchange took $54 million out of the company's results.
Biogen announced its new drug application for nusinersen; an investigational treatment for spinal muscular atrophy was accepted by the FDA for priority review. If approved, the company plans to market the treatment under the brand name Spinraza.