Biogen Idec Q3 profits fall 26%

10/27/05 - newratings.com

NEW YORK, October 27 (newratings.com) – Cambridge-based biotech major, Biogen Idec (BIIB), reported its Q3 earnings significantly short of the consensus on Wednesday, primarily due to significant one-time charges.

Biogen Idec reported its net income at $27.2 million or $0.08 per share for 3Q05, as compared to $36.8 million or $0.10 per share in the year-ago period. Biogen Idec's revenues grew 10% to $596 million in 3Q05, as compared to $543 million during the same period last year, driven by the 8% sales growth of the company's Multiple Sclerosis (MS) drug, Avonex. Biogen Idec witnessed 14% sales growth for its cancer drug, Rituxan, which is co-promoted by Genentech (DNA). Biogen Idec's Q3 results reflect an $88 million merger-related charge, a $27 million restructuring charge and a $21 million charge related to the sales of its two facilities. The company announced that it seeks to restart the clinical tests for its MS drug, Tysabri. Biogen's share price fell 3.7% to $38.52 in after-hours trading on Wednesday.