Biogen's 4Q profit grows as Icahn makes power play

NEW YORK — Activist investor Carl Icahn made another power play for Biogen Idec Inc. Friday as the company said its fourth-quarter profit edged up 3 percent and 2009 results could top expectations.

Icahn made a failed attempt at placing three nominees to the companies board of directors last June.

This time around, Icahn is trying to place three nominees on the board, including two from the prior shareholder rejection, while expanding the membership to 13 from 12.

The battle over board seats will play out as Wall Street remains concerned over lagging sales of the multiple sclerosis drug Tysabri. Though the company met profit forecasts for the fourth-quarter, Tysabri sales are down compared with the third quarter.

The biotechnology company said it earned $206.7 million, or 70 cents per share, in the October-December period, up from $201.2 million, or 67 cents per share, a year ago.

Biogen said it earned 93 cents per share from continuing operations, matching what Thomson Reuters says analysts expected.

Revenue climbed 20 percent to $1.07 billion from $893 million a year ago, just below analysts' estimate of $1.09 billion.

Biogen says sales of multiple sclerosis drug Avonex grew 13 percent to $566 million. Revenue from another MS drug, Tysabri, were $156 million. That was a 73 percent increase from a year ago, but sales fell compared with the third quarter of 2008, when Biogen received $171 million in Tysabri revenue.

Biogen Idec sells Tysabri through a partnership with Elan Corp. of Ireland. Total sales fell to $218 million from $216 million a quarter ago.

More than 37,600 patients were taking Tysabri at the end of the quarter, Biogen said. That compares to more than 35,500 patients at the end of the third quarter and continues a pattern of slowing growth. The result appeared to disappoint Wall Street.

"Biogen Idec's share of Tysabri was below expectations," said Cowen and Co. analyst Eric Schmidt. He said analysts expected an average of $185 million in revenue for Biogen.

Biogen and Elan reported four cases of a rare brain infection in patients taking Tysabri during the third and fourth quarter. Concerns about the disease, called progressive multifocal leukoencephalopathy, caused Tysabri to be pulled from the market in 2005. Sales resumed the following year, with restrictions.

Biogen's share of revenue from the non-Hodgkin's lymphoma and rheumatoid arthritis drug Rituxan rose 20 percent to $303 million. The company sells that drug through a partnership with Genentech Inc. Total sales of Rituxan grew 14 percent to $677 million from $596 million a year ago.

In 2008, Biogen said its profit rose 23 percent to $783.2 million, or $2.65 per share, from $638.2 million, or $1.99 per share. Revenue increased 29 percent to $4.1 billion from $3.17 billion, as Avonex sales grew 18 percent to $2.2 billion, and Biogen's share of Rituxan revenue increased 22 percent to $1.1 billion. Tysabri revenue more than doubled to $589 million.

The Cambridge, Mass.-based company said it expects a profit of more than $2.80 per share in 2009. Excluding one-time iterms, it put its forecast at more than $4 per share. Analysts expect $3.99 per share on average and typically exclude one-time items from those estimates.

Revenue growth was forecast at less than 10 percent. Analysts expect $4.48 billion in revenue, which implies growth of 9 percent.

Biogen said overseas sales of Rituxan are expected to slide because of the stronger dollar.

The company's shares fell 80 cents to $52.48 Friday. Elan shares fell 7 cents to $7.94.