Biogen Inc (NASDAQ: BIIB) stock lost over 1.1% on July 25th, 2017 (as of 11:30AM EDT; Source: Google finance) as the group reported mixed performance in the second quarter of 2017. Total Interferon revenues lost 5% to $691 million in the second quarter of 2017 as compared to the prior corresponding period. AVONEX product revenue lost 8% to $557 million during the period from pcp.
Overall Biogen Product Revenues rose 7% to $ 2,640 million in the second quarter of 2017 against pcp while enhanced 11% from last quarter. GAAP cost of sales rose 1% during the second quarter of 2017 from pcp while Biogen GAAP R&D expenses decreased 68% on a yoy basis. The group had cash, cash equivalents and marketable securities of over $5.5 billion, as of June 2017 wherein 80% of this is outside the U.S. Biogen bought back over 2.9 million shares of their common stock for a total value of $782 million during the second quarter of 2017.
Biogen also improved their full year 2017 top line with revenue now projected to be over $11.5 to $11.8 billion driven by better than expected adoption of SPINRAZA in the U.S. But this forecasts also comprise the decrease of their share of RITUXAN annual pre-tax co-promotion profits in the U.S. GAAP and non-But, GAAP R&D expense is forecasted at over 18% to 19% of total revenue. This rise is mainly on the back of $360 million in business development expense related to the recent licensing agreement with Bristol-Myers Squibb.
Meanwhile, Biogen finished an asset purchase of Remedy Pharmaceuticals’ Phase 3-ready candidate, CIRARA™ (intravenous glibencamide), now known as BIIB093 in May 2017. The group incurred a $120 million GAAP-only charge related to this acquisition during the second quarter of 2017. They also finished a license agreement with Bristol-Myers Squibb in June 2017 for BIIB092 (formerly known as BMS-986168), an anti-tau antibody with potential in Alzheimer’s disease and progressive supranuclear palsy (PSP). They also started the Phase 2 study in PSP with the first patient dosed in June 2017. As a result, they incurred an upfront payment of $300 million to Bristol-Myers Squibb and a $60 million milestone payment to the former stockholders of iPierian, Inc.
Biogen stock lost over 0.7% in this year to date as compared to NASDAQ who generated over 19.1% in this year to date.