When
a company with a market capitalization of nearly $56 billion is
expected to grow annual earnings by 32% in 2013 and 29% in 2014, you
know something good is going on.
For Biogen Idec (BIIB), the
"good" is Tecfidera, its recently approved oral multiple sclerosis (MS)
treatment. The drug is widely expected to be a blockbuster for the
company. According to some analysts, annual sales of the drug could hit
$3.5 billion by 2017. Novartis (NVS) and Sanofi (SNY) are the only other
drugmakers with approved MS pills on the market.
When
Biogen Idec reported second-quarter earnings in July, Tecfidera sales
totaled $192 million, more than double the consensus estimate. Sales of
the company's injectable MS treatment, Avonex, rose 2% to $774 million.
Earlier this year, the company acquired sole ownership of MS drug
Tysabri from partner Elan (ELN) for $3.25 billion. In 2012, Tysabri
sales totaled $1.6 billion, up 8% from 2011.
Earnings
are due Oct. 28 before the open. The Thomson Reuters consensus estimate
calls for profit of $2.10 a share, up 10% from a year ago with sales up
about 29% to $1.78 billion. READ MORE