Biogen Posts Profit on Avonex Sales Despite Tysabri Woes
Biogen Idec Inc., which suspended sales of its Tysabri multiple sclerosis drug in February, on Wednesday reported a $43.5-million first-quarter profit on sales of its Avonex MS medicine.
Net income was 12 cents a share, contrasted with a net loss of $41.2 million, or 12 cents, a year earlier, when the company had merger costs. Revenue rose 8.5% to $587.8 million.
Cambridge, Mass.-based Biogen said it expected $36 million in Tysabri-related costs to shave 25 cents a share from 2005 earnings, but the company didn’t issue a new forecast.
Biogen and partner Elan Corp. pulled Tysabri on Feb. 28 after the drug was linked to fatal nerve damage. Biogen, which had planned to produce Tysabri at a plant in Oceanside, had been counting on the drug to rejuvenate profit growth as sales of Avonex flattened.
“The key question is whether there is any chance of Tysabri coming back,” said Geoffrey Porges, an analyst at Sanford C. Bernstein & Co.
Biogen is waiting to complete its review before deciding how to proceed with Tysabri.
Sales of Avonex, Biogen’s top-selling product, climbed 5% to $374 million. Biogen is also depending on Rituxan, a cancer treatment, for profit growth, analysts said.
In other earnings news:
* Title insurer First American Corp. of Santa Ana said first-quarter profit surged 44% to $79.2 million, or 83 cents a share, from $55 million, or 62 cents, a year earlier. Revenue rose 16% to $1.7 billion. The results beat expectations of 77 cents a share.
* Ask Jeeves Inc., the Internet search firm being bought by Barry Diller’s IAC/InterActiveCorp, said first-quarter profit rose 36% as the company attracted more users and advertising sales rose. Net income rose to $18.1 million, or 26 cents a share, from $13.4 million, or 23 cents, a year earlier, the Oakland company said. Revenue more than doubled to $94.9 million.
* Allergan Inc., the maker of the Botox anti-wrinkle treatment, said first-quarter profit slipped 1.1%, hurt by costs to end an agreement with a former subsidiary and consolidate some operations in Europe. Net income dropped to $79.9 million, or 60 cents a share, from $80.8 million, or 60 cents, a year earlier, the Irvine company said. Sales rose 12% to $527.2 million.
* Skechers USA Inc. said first-quarter profit climbed 39% but said second-quarter earnings would be 21 cents to 26 cents a share, less than the 28 cents forecast by analysts. The Manhattan Beach shoemaker reported net income of $10.3 million, or 25 cents a share, up from $7 million, or 18 cents, a year earlier. Sales rose 11.2% to $246.2 million.
* Corinthian Colleges Inc., the Santa Ana owner of adult-education schools, said net income in the third quarter rose to $22.4 million, or 24 cents, from $21.2 million, or 23 cents, a year earlier. Revenue rose 16% to $254 million.
* Siebel Systems Inc. said it had a first-quarter loss because new software license sales fell 41%. The net loss of $4 million, or 1 cent a share, contrasted with net income of $31.7 million, or 6 cents, a year earlier, San Mateo-based Siebel said. Sales declined 9.2% to $298.9 million.
* IndyMac Bancorp Inc., which runs one of Southern California’s largest savings and loans, said first-quarter profit rose 56%, helped by a 68% jump in mortgage production, and it raised its 2005 profit forecast from $4.05 a share to $4.35. Net income for the Pasadena-based company rose to $65.5 million, or $1.01 a share, from $41.9 million, or 70 cents, a year earlier.
