How Did Biogen Perform in 2Q17?
Biogen’s revenue trends
In 2Q17, Biogen (BIIB) generated revenue of ~$3.1 billion, a 6% rise year-over-year (or YoY) and a 9% rise quarter-over-quarter. In 2Q17, excluding its hemophilia business on an apples-to-apples basis, Biogen’s net revenue witnessed a ~15% rise YoY.
The rapid growth in the sales of BIIB’s biosimilar portfolio and its drugs Spinraza and Tecfidera contributed to its revenue growth in 2Q17. Biogen’s multiple sclerosis franchise generated revenue of ~$2.3 billion in the quarter, rises of ~5% YoY and ~7% quarter-over-quarter. After releasing its 2Q17 results, Biogen raised its revenue guidance range for 2017 from $11.1 billion–$11.4 billion to ~$11.5 billion–$11.8 billion.
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The above graph demonstrates Biogen’s revenue trajectory from 1Q16 to 2Q17 as well as analysts’ estimates for 3Q17 and 4Q17. To learn more about Biogen, read Biogen Reports Strong Revenue Growth in 1Q17.
In 2Q17, Biogen reported a GAAP (generally accepted accounting principles) cost of sales of ~$366 million, compared to $370 million in 2Q16. The company reported GAAP R&D (research and development) expenses of ~$796 million, compared to $423 million in 1Q17 and $473 million in 2Q16. Biogen also reported GAAP SG&A (selling, general, and administrative) expenses of ~$430 million.
Acquisition of Remedy Pharmaceuticals’ Cirara
In May 2017, Biogen purchased Remedy Pharmaceuticals’ Cirara (intravenous glyburide). Cirara is a phase 3 investigational drug candidate being evaluated for safety and efficacy in the treatment of large hemispheric infarction (or LHI), a severe form of ischemic stroke.
Cirara has been granted an orphan drug designation by the FDA. Biogen believes that Cirara is a potential breakthrough stroke therapy option.
Biogen’s peers in the multiple sclerosis market include Novartis (NVS), Sanofi (SNY), Merck & Co. (MRK), Teva Pharmaceutical, and Bayer. The iShares Nasdaq Biotechnology ETF (IBB) invests ~9.3% of its total portfolio holdings in Biogen.