Biogen shares are tanking because a 71% surge in profits just wasn't enough
Sometimes a 71% surge in profits is not enough.
Shares of Biogen fell by over 6% to as low as $401 per share in early trading on Friday. Earlier, the biotech company announced first quarter results that missed on earnings and revenues.
The numbers: Net profit escalated to $822.5 million, or $3.49 per share, from $480 million, or $2.02 per share, a year earlier. Investors had expected $3.59 a share, according to Bloomberg.
Excluding non-recurring items, Biogen earned $3.82 per share, missing expectations of $3.87.
Revenues rose about 20% to $2.55 billion, missing the estimate of $2.645 billion.
"In the first quarter, we continued to gain share in the MS [multiple sclerosis] market and we believe that our MS product portfolio is well positioned to provide patients the breadth of choices that they need," said CEO George Scangos in the earnings statement.
Scangos also said sales of its major oral multiple sclerosis drug Tecfidera slowed, and its revenues fell 10% quarter-over-quarter.
Piper Jaffray lowered its price target to $485 from $500 because of today's weak Q1 results, according to The Fly On The Wall. Joshua Schimmer, an analyst, said Biogen "has a long way to go before it can be considered a top pick again."
Last month, the stock spiked 9% after it announced preliminary results for an Alzheimer's disease treatment.
The stock is up neary 19% year-to-date, and 37% over the past 12 months.
Here's a chart showing the stock's plunge on Friday:
