Biotech Update

Biogen reported higher earnings for Q4 on sales of the drugs Avonex and Rituxan, but revenues still came in shy of analyst expectations. The company posted a more-than-doubling of net income to $108.6 million ($0.32/share) from $55.6 million ($0.16) a year earlier. Excluding items, EPS would have been $0.53 against $0.48 last year. Q4 revenue was up 12% to $708.3 million. Analysts were expecting EPS of $0.55 on $714.2 million in revenue. Sales of multiple sclerosis drug Avonex, the company's leading product, rose 6% to $439 million, while sales of oncology drug Rituxan were up 20% to $218 million. Biogen and Genentech co-market Rituxan, and a marketing dispute between the parties is threatening to escalate.

Elan Corp. PLC reported a smaller fourth-quarter loss and higher sales Tuesday, citing the expansion of its multiple sclerosis-fighting drug Tysabri. It partners with Biogen for the drug Tysabri which was pulled of the US market but has since been permitted to be put back on.

Britain's Shire Plc has agreed to buy U.S. partner New River Pharmaceuticals for $2.6 billion to gain full control of the two firms' new drug for attention deficit hyperactivity disorder (ADHD), Vyvanse.