Tysabri’s growth trends
In 1Q17, Biogen (BIIB) saw an increased demand for Tysabri, both in the United States and in international markets. Prescribers have been increasingly favoring Tysabri’s benefit-risk profile. Increased physician confidence may further boost the drug’s sales volumes in future quarters.
Data from the Tysabri observational program have demonstrated the benefits of early treatment with the drug in treatment-naïve MS (multiple sclerosis) patients. The program also showed that a higher benefit accrued to those patients who continue with Tysabri and don’t switch to other therapies in the longer term.
If these trends result in increased demand for Tysabri in future quarters, it may have a positive impact on Biogen stock as well as the Health Care Select Sector SPDR ETF (XLV). Biogen makes up about 2.3% of XLV’s total portfolio holdings.
In 1Q17, Tysabri reported revenues close to $545.0 million, which is a YoY (year-over-year) rise of around 14.0%. The drug earned revenues of $306.0 million in the US market and the remaining $239.0 million from international markets.
Tysabri’s international market revenues were higher by about $45.0 million in 1Q17 since Biogen entered into an agreement with the pricing committee of the Italian Medicines Agency.
Tysabri is expected to be affected by Ocrevus, Roche Holdings’ (RHHBY) newly approved MS therapy. In spite of being an MS market leader, Biogen faces stiff competition from other MS players such as Sanofi (SNY) and Novartis (NVS).
Biogen and AbbVie are both involved in launching Zinbryta, another MS therapy, in US and international markets.
In the next part of this series, we’ll look at the growth trends for Spinraza, Biogen’s SMA (spinal muscular atrophy) drug.