Investors buy on hope for Biogen earnings

LOS ANGELES (MarketWatch) � Investors boosted shares of Biogen Idec Inc. Monday after the biotechnology company�s fourth-quarter sales came in ahead of estimates, even though earnings technically fell short of predictions.

Biogen BIIB �climbed nearly 3%, or $3.79, to $149.99, as investors seemed to look past the earnings shortfall, which was dismissed by some as a one-time setback for the company. Instead, the market focused on an upside revenue surprise along with plans for new product introductions coming later in the year.

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Biogen said net income for the quarter was $292.1 million, or $1.23 a share, compared with $300.2 million, or $1.22 a share, for the same period a year ago. Revenue was $1.42 billion compared to last year�s $1.33 billion.

Adjusted earnings were $1.40 a share, but analysts polled by FactSet had predicted profits of $1.46 a share for the quarter. The $1.42 billion in revenue, however, was ahead of the $1.39 billion forecast, due mostly to better than expected sales of the multiple sclerosis drug Avonex.

Some analysts said an accounting correction relating to taxes at a Biogen facility in Denmark impacted earnings by 12 cents, which appears to be a one-time charge. If so, that could translate to an actual upside surprise of 6 cents a share.

Biogen offered initial 2013 guidance, predicting adjusted earnings of $7.15 to $7.25 a share, below forecasts of $7.26 a share. That, however, appears to be due to increasing expenses that will come from new product launches, analysts said in morning notes to clients.

Revenue gains of 10% over the $5.52 billion reported for fiscal 2012 were forecast by the company, or roughly $6.1 billion. That�s slightly higher than the analyst opinion via FactSet, which calls for just under $6 billion for the coming year.

Biogen expects to realize growth from such treatments as a new MS drug Tecfidera � also known as BG-12 � as well as two medications for hemophilia, Factor VIII and Factor IX.