Biogen holding $1B drug?
Drug maker believes its MS drug could become $1B product; earnings strong
October 6, 1998: 12:40 p.m. ET
NEW YORK (CNNfn) - Biogen Inc. on Tuesday said Avonex, its multiple sclerosis drug that paved the way for a stellar third-quarter performance, may be broadened to treat other diseases and could become a $1 billion drug in the next five years.
The Cambridge, Mass.-based pharmaceutical firm Monday reported net income of $37.6 million for the quarter ending Sept. 30, up more than 80 percent from earnings of $20 million last year.
Earnings per diluted share were 49 cents, in-line with analysts' predictions, and up 81 percent from 27 cents last year. Revenues during the quarter reached $153 million, up from $106 million in the year-ago period.
Biogen Chief Executive James Tobin told CNNfn Tuesday he believes Avonex, now only approved for use for early-stage multiple sclerosis patients, could be approved for later-stage patients in the next two to three years. He also said the drug has shown early signs of being useful as a treatment for other diseases, such as brain cancer and pulmonary fibrosis.
"It's hard to tell just yet, but it would seem that, with the momentum we have now, (Avonex) could turn out to be a $1 billion drug," he said.
He said in Monday's earnings statement that Avonex "has retained its position of market leadership, with balanced growth continuing in both the United States and Europe, without the type of slowdowns we have seen in past summers."
More than 50,000 patients worldwide are being treated weekly with Avonex, up from 44,000 at the end of the last quarter.
In the United States, where more than 40,000 patients are on the drug., product sales for the quarter exceeded $83 million. European product sales are hovering around $24 million.
Shares of Biogen (BGEN) were up 1-1/4 midday Tuesday at 66-7/16 on the Nasdaq.
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