Biogen Idec (BIIB), an independent biotechnology company, has recorded a 45.62 percent surge in profit for the quarter ended Jun. 30, 2014, helped by solid sales growth and improvement in margins.
The company earned $714.51 million or $3.01 a share in the second-quarter compared with $490.67 million or $2.06 a share a year ago. Adjusted earnings per share came in at $2.80, when analysts expected $2.30.
Revenue during the second-quarter jumped 40.50 percent to $2421.45 million from $1723.47 million in the last year period.
Gross margin expanded by 133 basis points over the previous year period to 87.95 percent. Total expenses as a percentage of revenues decreased to 59.17 percent from 61.56 percent in the same period last year. That has resulted in improvement of 239 basis points in operating margins to 40.83 percent.
The company disclosed operating income of $988.72 million, compared with $662.53 million in the last year period.
"This past quarter highlighted significant accomplishments across our business, from the approval of ELOCTATE for hemophilia A, to the continued patient uptake of TECFIDERA in the U.S. and new markets worldwide, to strong clinical results for important emerging MS treatments," said CEO George A. Scangos, Ph.D.
Cash Flow
Biogen Idec has generated cash of $1095.22 million from operating activities during the first half, up 36.20 percent or $291.07 million when compared with the last year period. The company has generated 27.72 cents of operating cash flow in every sales dollar for the first half, down from 31.11 cents in the same period last year.
The company has spent $624.13 million cash to meet investing activities during the first half, as against cash outgo of $570.30 million in the last year period. It has made net capital expenditure of $118.31 million during the first half, which was lower by 96.47 percent or $3231.85 million, from a year ago.
The company has spent $207.48 million cash to meet financing activities during the first half, as against cash outgo of $409.19 million in the last year period. It has spent net of $303.43 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $863.20 million, up 119.92 percent or $470.69 million from Jun. 30, 2013.
Working Capital
Biogen Idec has witnessed an increase in the working capital over the last one year. The company's working capital stood at $2008.39 million as at Jun. 30, 2014, up $789.24 million or 64.74 percent from $1219.15 million on Jun. 30, 2013. It registered an increase in current ratio to 2.05 as at Jun. 30, 2014 from 1.93 on Jun. 30, 2013.
Debt Position
Biogen Idec has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $589.48 million, down 19.20 percent or $140.10 million, from Jun. 30, 2013.
The company's total debt was 4.56 percent of total assets as on Jun. 30, 2014, compared with 6.73 percent on Jun. 30, 2013.
Shares of the company went down by 94 cents or 0.28 percent to close at $336.39 on Monday.
