CAMBRIDGE, Mass. (CBS.MW) -- Biogen posted fourth-quarter earnings slightly higher than Wall Street estimates, reaffirming the announcement from the biopharmaceutical company's chief operating officer at the Chase H&Q Healthcare Conference earlier in the week.
Net income came in at $69 million, or 44 cents a share compared to $41.9 million, or 27 cents in the comparable quarter last year.
Analysts surveyed by First Call projected a per-share figure of 43 cents.
Revenue in the fourth quarter rose to $225 million compared to last year's $168.4 million.
Biogen's chief executive officer said, in a statement, that the company's flagship product Avonex saw sales grow to $621 million in 1999 vs. $395 million in 1998.
At the Chase H&Q Annual Healthcare Conference in San Francisco this week, Biogen's Chief Operating Officer James C. Mullen said the company reaffirmed expectations of 44 cents a share.
Mullen said the company's revenue goal for this year is in the range of $1 billion. Biogen will accelerate its genomics program in 2000 and aims to have 100,000 patients taking Avonex by year-end.
The company plans to continue its move toward globalization, with a particular emphasis in Japan, Mullen said. He said he foresees Biogen year-over-year U.S. growth of 44 percent.
Salomon Smith Barney analyst Meirav Chovav downgraded Biogen, as well as other biotech stocks last week, mainly because biotechnology prices have risen dramatically in recent weeks. she downgraded Biogen to "outperform" from "neutral," citing concerns about patent litigation, and slowing sales of its leading product, the multiple sclerosis drug Avonex. The stock has also exceeded a price target of $77, she said.
"At this point, we have concerns regarding the valuation of the group," Chovav said in a research note. Chovav, however, said that while she's concerned over the current valuation of the biotech sector, she still believes the group has "impressive" long term growth potential, thanks to the flow of new drugs." See full story.
The biopharmaceutical company discovers and develops drugs for human healthcare through genetic engineering.
Biogen shares (BGEN: news, msgs) rose 3 3/8 to close at 77 5/16 on volume of 3.52 million shares. |
