Biogen Idec third-quarter profit falls 27 percent | VailDaily.com
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Biogen Idec third-quarter profit falls 27 percent

BOSTON – Biogen Idec Inc. on Wednesday said its third-quarter profit fell by 27 percent, short of Wall Street’s expecations for the biotechnology company.Cambridge-based Biogen Idec reported net income for the July-September period of $27.2 million, or 8 cents a share, compared with a profit of $36.8 million, or 10 cents per share, in last year’s third quarter. Revenues grew 10 percent to $596 million from $543 million, driven by 8 percent sales growth for Biogen Idec’s multiple sclerosis drug, Avonex. The company also reported a 22 percent sales rise for Rituxan, a cancer treatment.The performance was clouded by several one-time expenses, including $88 million in merger-related expenses, $27 million in costs from severance and relocation from a recent job cuts announcement, and a $21 million expense tied to the sale of a manfuacturing plant.Excluding those charges, Biogen Idec’s profit totaled $122 million, or 36 cents per share, compared with a profit of $132 million, or 37 cents per share, excluding one-time expenses and gains a year ago.The most recent quarter’s performance fell 6 cents short of the consensus forecast of analysts surveyed by Thomson Financial, who on average expected a per-share profit of 42 cents.Biogen Idec announced earnings after its shares fell 41 cents to close at $40.01 on the Nasdaq Stock Market, where stock has traded in a 52-week range of $33.18 to $70.00. In extended trading, its shares fell another $1.36, or 3.4 percent.Biogen shares plunged more than 42 percent on Feb. 28, the day Biogen Idec and its Irish partner, Elan Corp., withdrew the MS treatment Tysabri and disclosed the drug may heighten the risk of contracting a rare and often fatal disease of the central nervous system.The companies recently completed a safety review of the drug and have applied to resume sales in the United States.Vail, Colorado


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