Biogen Idec 1Q profit up 24 percent, helped by MS drug

BOSTON -

Sales of a new multiple sclerosis drug helped lift Biogen Idec Inc.'s first-quarter profit by 24 percent to beat Wall Street expectations, and the biotechnology firm raised its full-year earnings forecast.

The Cambridge, Mass.-based company said Wednesday it earned $163.1 million, or 54 cents per share in the three months ended March 31, compared with a profit of $131.5 million, or 38 cents per share, in last year's first quarter.

Excluding several one-time charges, Biogen Idec (nasdaq: BIIB - news - people )'s profit was $250 million, or 83 cents per share. On that basis, the profit beat expectations of analysts surveyed by Thomson Financial, who had forecast earnings of 79 cents per share, on average.

First-quarter revenue rose 32 percent to $942.2 million - soundly beating analysts' consensus forecast of $890.1 million - from $715.9 million a year ago.

Citing its first-quarter gains, Biogen Idec raised its financial forecast for the full year. The company now expects a 2008 profit of $3.25 to $3.45 per share, excluding one-time charges and gains, up from the company's previous guidance in February for $3.20 to $3.35.

Analysts' latest estimate was for a 2008 profit of $3.30 per share.

Its shares rose 15 cents to $64.77 in morning trading Wednesday.

Jim Mullen, Biogen Idec's chief executive, said "prospects for the company have never been better," based on the first-quarter momentum and upcoming releases of data from drug clinical trials.

The biggest driver of Biogen Idec's quarterly gains was a more than tripling in sales of Tysabri, an MS treatment that brought in $114.7 million in revenue for Biogen Idec. The medication, which Biogen Idec developed with Ireland-based partner Elan Corp. (nyse: ELN - news - people ), brought in $29.7 million in revenue for Biogen in last year's first quarter, shortly after the drug was reintroduced to the market with distribution restrictions to address safety concerns involving a rare brain disorder.

About 26,000 patients were taking Tysabri at the quarter's end, up from 21,000 at the end of last year.

Sales of Avonex, a 12-year-old MS treatment, rose 19 percent in the latest quarter to $536 million.

Biogen Idec's share of revenue for Rituxan, a treatment for non-Hodgkins lymphoma and rheumatoid arthritis, rose 19 percent to $247 million. Biogen Idec co-promotes Rituxan in the U.S. with Genentech Inc. (nyse: DNA - news - people )

Biogen Idec's earnings report came before an expected proxy battle at the company's annual meeting, which has not been scheduled.

Activist investor Carl Icahn, who became a major Biogen shareholder last year, has proposed a slate of three nominees to the company's board. Last week, the company rejected Icahn's nominees.

Icahn triggered a two-month effort by Biogen last fall to seek a buyer for the company. The search ended without any definitive bids, and Icahn accused the firm of rigging the search to fail. The company has said it expects to remain independent.