- Associated Press - Thursday, July 21, 2016

NEW YORK (AP) - Biogen stock climbed Thursday after the drugmaker reported strong sales of some of its newest treatments for multiple sclerosis and hemophilia.

The Cambridge, Massachusetts-based company’s net income and sales were both stronger than investors expected. Its revenue climbed 12 percent from a year ago. A large chunk of that growth came from its multiple sclerosis drugs Tecfidera and Plegridy and hemophilia treatment Eloctate, all of which were approved in 2013 or 2014. Tecfidera has become Biogen’s best-selling drug.

Biogen stock has lost almost a third of its value over the last year, and in late June it fell to its lowest price in almost three years. In Thursday morning trading the shares gained $15.92, or 6.1 percent, to $278.33.

The company said its net income grew to $1.05 billion, or $4.79 per share. Excluding one-time items Biogen said it earned $5.21 per share. The company said its revenue climbed to $2.89 billion.

Analysts expected net income of $4.69 per share and $2.8 billion in revenue, according to Zacks Investment Research.

Revenue from Tecfidera rose 12 percent to $987 million and Plegridy revenue climbed 65 percent to $123 million. Revenue from Eloctate rose 68 percent to $125 million.

Biogen also said CEO George Scangos will leave the company in the next few months, after the company chooses a successor. Biogen did not disclose a reason for his departure, but in a press release, Scangos said it was the right time for the company to have new leadership. He has been Biogen’s CEO since July 2010.

Biogen Inc. also raised its estimates for 2016. In May the company said it plans to spin off its hemophilia drug business into a separate publicly traded company, but it now expects to complete that move early next year. It is now forecasting net income of $19.70 to $20 per share on $11.2 billion to $11.4 billion in revenue. Previously it projected a profit of $18.30 to $18.60 a share on $11.1 billion to $11.3 billion in revenue. Biogen reported $205 million in hemophilia drug revenue in the second quarter.

Despite the gains, Biogen stock is down about 9 percent in 2016 while the Standard & Poor’s 500 index is up 6 percent.

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Elements of this story were generated by Automated Insights (https://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on BIIB at https://www.zacks.com/ap/BIIB

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Keywords: Biogen, Earnings Report

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