Revenue growth projections
Biogen will release its 2Q16 earnings on July 21. Wall Street analysts estimate that in 2Q16, Biogen’s (BIIB) revenues will reach approximately $2.8 billion, which would be a YoY (year-over-year) rise of approximately 7.9%. The oral multiple sclerosis drug Tecfidera remains a key growth driver for the company.
Plus, Biogen also expects to benefit due to the launch of Benepali, a biosimilar version of Amgen’s (AMGN) Enbrel, in six countries in Europe in 1Q16. On May 30, the European Commission approved Flixabi for commercialization in Europe. Flixabi is the biosimilar version of Janssen Biotech’s Remicade developed by Samsung Bioepis, a joint venture between Biogen and Samsung BioLogics. Janssen Biotech is a subsidiary of Johnson & Johnson (JNJ). Flixabi is expected to boost Biogen’s revenues post-3Q16.
If Biogen manages to surpass these net margin projections, it may boost the company’s share price as well as that of the SPDR S&P 500 ETF (SPY). Biogen makes up about 0.30% of SPY’s total holdings.
To boost its profit margins, Biogen has focused on three core areas: containment, revenue growth, and research and development (or R&D). The company implemented cost control measures as part of a restructuring program initiated in October 2015. To learn more about this program, see Biogen Announces Corporate Restructuring Program.
Plus, the company plans to commercialize new drugs such as Zinbryta and Flixabi in 2016. Biogen has also been actively exploring acquisition opportunities as well as late-stage commercial assets to add to its revenues in 2016.
In the next part of this series, we’ll analyze expectations for Biogen’s multiple sclerosis drugs in 2Q16.