Biogen Profit Falls, Sales of Drug Slow
Friday October 18, 7:39 am ET
CAMBRIDGE, Mass. (Reuters) - Biogen Inc. (NasdaqNM:BGEN - News) on Friday said third-quarter earnings fell 40 percent as it struggled to prop up slowing sales of its only marketed product, the multiple sclerosis drug Avonex.
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Biogen, based in Cambridge, Massachusetts, posted net profit of $42 million, or 28 cents a share, compared with $70 million, or 46 cents a share, a year ago.
Excluding a charge of $18 million to cover the write-down of losses on securities trading, the company's profit was 37 cents a share, 2 cents higher than analysts had expected, according to Thomson First Call.
Revenue rose 9 percent to $288 million.
Biogen said it had settled a dispute with drugmaker Schering-Plough Corp. (NYSE:SGP - News) over royalties on U.S. sales of alpha interferon products for hepatitis C.
As part of the settlement, Biogen will receive a one-time payment of between $45 million and $50 million in the fourth quarter from Schering-Plough.
Schering-Plough has also agreed to begin paying royalties to Biogen on U.S. sales of interferon products, retroactive to Oct. 1.
As a result of the royalties, Biogen said it expects its 2002 earnings to reach the upper end of a projected range of $1.50 to $1.60 a share. The forecast excludes the one-time settlement payment.
Sales of Avonex rose to $261.6 million in the third quarter from $248.1 million a year earlier
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Friday October 18, 7:39 am ET
CAMBRIDGE, Mass. (Reuters) - Biogen Inc. (NasdaqNM:BGEN - News) on Friday said third-quarter earnings fell 40 percent as it struggled to prop up slowing sales of its only marketed product, the multiple sclerosis drug Avonex.
ADVERTISEMENT
Biogen, based in Cambridge, Massachusetts, posted net profit of $42 million, or 28 cents a share, compared with $70 million, or 46 cents a share, a year ago.
Excluding a charge of $18 million to cover the write-down of losses on securities trading, the company's profit was 37 cents a share, 2 cents higher than analysts had expected, according to Thomson First Call.
Revenue rose 9 percent to $288 million.
Biogen said it had settled a dispute with drugmaker Schering-Plough Corp. (NYSE:SGP - News) over royalties on U.S. sales of alpha interferon products for hepatitis C.
As part of the settlement, Biogen will receive a one-time payment of between $45 million and $50 million in the fourth quarter from Schering-Plough.
Schering-Plough has also agreed to begin paying royalties to Biogen on U.S. sales of interferon products, retroactive to Oct. 1.
As a result of the royalties, Biogen said it expects its 2002 earnings to reach the upper end of a projected range of $1.50 to $1.60 a share. The forecast excludes the one-time settlement payment.
Sales of Avonex rose to $261.6 million in the third quarter from $248.1 million a year earlier
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