Biogen Inc. (NASDAQ: BIIB) reported its third quarter earnings for fiscal year 2017 and beat estimates in both revenue and earnings. Biogen’s positive quarter was attributable to its FDA approved drug, Spinoza, which was in high demand, but shares fell over 6 percent on Tuesday.
Biogen reported an EPS increase of $6.31, beating analysts’ estimates by $0.58, and increasing 22 percent year over year. The biotech company reported revenue of $3.1 billion, beating analysts’ estimates by $40 million, and increasing 4 percent year over year.
One of the most anticipated drugs from Biogen was its Spinraza, a drug used for spinal muscular atrophy. Spinraza generated $271 million in global revenue and beat SunTrust’s analyst, Robinson Humphrey, estimate of $242 million.
Although Spinraza sales beat global estimates, U.S. sales fell short, sending shares down on Tuesday.
Spinraza’s revenue rose from $203 million to $271 million, a 34 percent increase quarter over quarter. Spinraza costs $750,000 for the first year and $375,000 after the first year.
Last year, the FDA approved Spinraza to treat spinal muscular atrophy, a rare disorder and the leading genetic cause of death in infants.
The only sclerosis drugs for Biogen that showed an increase in sales year over year were: TECFIDERA and FAMPYRA. TECFIDERA revenue was $1.07 billion, increased by 3 percent year over year. FAMPYRA revenue was $24 million, increased by 15 percent year over year.
Other products also include Biosimilars. Revenue rose from $31 million to $101 million, a 229 percent increase year over year.
“In the third quarter, we executed well against our strategic priorities,” said Vounatsos, “We had a solid third quarter, and over the balance of the year we anticipate seasonal pressure as well as increased spending as we invest behind our strategic priorities.”