Biogen Idec 2Q profit falls on charge for MS drug

CAMBRIDGE, Mass. - Biotechnology company Biogen Idec Inc. said Thursday its second-quarter profit fell on charges for a drug development deal with Acorda Therapeutics Inc., but sales of its multiple sclerosis drugs gained ground.

The company earned $142.8 million, or 49 cents per share, compared with profit of $206.6 million, or 70 cents per share, during the same period a year prior. Revenue rose 10 percent to $1.09 billion from $993.4 million.

Excluding charges for a drug development deal with Acorda Therapeutics Inc., the company said it earned 75 cents per share.

Analysts polled by Thomson Reuters expected profit of 68 cents per share on revenue of $1.07 billion.

Biogen paid Acorda $110 million upfront for overseas rights to an experimental multiple sclerosis drug.

During the quarter, sales of the multiple sclerosis drug Avonex rose 12 percent to $591.2 million, while sales of the multiple sclerosis drug Tysabri rose about 27 percent to $254 million. Revenue from that drug, which is sold with partner Elan Corp., rose 27 percent to $187.6 million.

The company also received $276 million from its partnership with Genentech on the cancer and rheumatoid arthritis drug Rituxan.

In a statement, Biogen highlighted a boost in Tysabri patients, saying 43,300 patients were on the drug as of the end of June. Sales of the drug had been hampered by reports of a rare, but deadly brain infection in patients. It was pulled from the market in 2005 due to concerns about the condition, called progressive multifocal leukoencephalopathy, or PML. Sales resumed in July 2006 with restrictions and a monitoring program.

Since then, the company has reported 10 additional cases of the condition in patients.

Looking ahead, the company said it expects adjusted profit to be above $3.85 per share, which still leaves some room for it to meet prior guidance, set at more than $4 per share. Meanwhile, it expects a revenue boost in the high, single digits.

Analysts expect full-year profit of $3.82 per share on revenue of $4.31 billion.

Biogen shares rose $1.08, or 2.3 percent, to $47.75 in morning trading. The stock has traded between $37.21 and $73.59 over the last 52 weeks.

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