Thursday, April 21, 2011

Biogen (BIIB) BG-12 Results Surprise, Shares Soar

Shares of Biogen Idec Inc are soaring today on the surprising results from a clinical trial of its experimental multiple sclerosis drug BG-12.

According to Biogen, results showed the drug, when given twice a day, cut the annualized relapse rate by 53 percent at two years compared with placebo, and lowered the rate of disability progression by 38 percent.

BG-12 is a pill that would compete with Gilenya, a drug launched recently from Novartis AG (NOVN); and laquinimod, an experimental pill being developed by Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA).

Biogen already sales drugs for multiple sclerosis called Avonex, which is injected, and Tysabri, which is infused.

Doug Williams, Biogen's head of research and development, said, "Based on the data we've seen so far, if we can replicate it in the next trial, I feel very comfortable that we will have a very competitive drug in the MS space."

Biogen also reported earnings, which excluding one-time items, came to $1.43 a share in the first quarter. Analysts were on average expecting earnings of $1.41 a share and revenue of $1.18 billion.

Biogen was trading at $104.01, up $17.44, or 20.15 percent, as of 12:47 PM EDT.

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