Tysabri Could Boost Biogen’s Revenue Growth
Tysabri revenue trends
In 2016, Biogen’s (BIIB) Tysabri reported revenues of around $2.0 billion, which is ~4% growth year-over-year (or YoY). In 1Q17, the drug generated revenues of around $545 million, which reflected ~14% growth YoY and ~15% growth on a quarter-over-quarter basis. In 1Q17, Tysabri generated revenues of $306 million from the US and another $239 million from outside US markets. Revenues from outside US markets reflected ~29% growth on a quarter-over-quarter basis. In 1Q17, Biogen also profited by around $45 million due to the closure of an agreement with the Italian National Medicines Agency (or AIFA) related to Tysabri’s sales in preceding periods.
Biogen estimated that in 1Q17, Tysabri’s revenues were negatively affected by around $6.0 million due to the impact of unfavorable foreign exchange fluctuations. The company, however, has reported a gradual rise in demand for the drug in the US and international markets. This may boost the drug’s revenue in 2017. Biogen’s growth in product sales may boost the share prices of the Health Care Select Sector SPDR Fund (XLV). Biogen holds about 2.0% of XLV’s total portfolio holdings. Merck (MRK), Biogen’s peer in the multiple sclerosis (or MS) drug market, accounts for ~6% of XLV’s total portfolio holdings.
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The above graph characterizes the revenue curve of Tysabri from 1Q16 to 1Q17. To know more about Tysabri’s historical statistics, read Tysabri Witnessed Robust Patient Growth in 2016.
Tysabri (natalizumab) is a humanized monoclonal antibody used for the treatment of adults with relapsing forms of MS. However, the drug is associated with risk of progressive multifocal leukoencephalopathy (or PML), so it’s recommended that physicians consider whether the benefit to the patient is substantial enough to offset the risk.
The drug is also indicated for induction and maintenance of clinical response in patients with moderate to severe Crohn’s disease (or CD) who had evidence of inflammation and were unresponsive to traditional CD therapies and TNF inhibitors. Novartis’s (NVS) Gilenya and Sanofi’s (SNY) Aubagio are Tysabri’s top competitors.