UPDATE 3-Biogen profit up 11 pct, Tysabri shines

(Adds company and analyst comment, updates share price)

By Bill Berkrot

NEW YORK, July 22 (Reuters) - Biogen Idec Inc (BIIB.O) reported a higher-than-expected second-quarter profit on Tuesday as sales of its closely watched multiple sclerosis drug Tysabri surged past Wall Street estimates, pushing its shares up more than 5 percent.

The biotechnology company, which this month fended off activist investor Carl Icahn's attempt to place three hand-picked candidates on the board, posted a net profit of $206.6 million, or 70 cents per share, compared with a profit of $186.1 million, or 54 cents a share, a year earlier.

Excluding items, Biogen earned 91 cents per share, beating analysts' average expectations by 6 cents, according to Reuters Estimates.

"The quarter was impressive," said RBC Capital Markets analyst Jason Kantor. "They handily beat estimates, and when you look at the strength it seemed to be across all products."

Global sales of Tysabri, which Biogen co-markets with Irish drugmaker Elan Corp (ELN.I), nearly tripled to $200 million, easily topping Wall Street expectations of about $182 million. Biogen recognized revenue of $147 million from Tysabri sales.

Tysabri marked the second anniversary of its relaunch this month after it was pulled from the market for a time over concerns about cases of a potentially fatal brain infection.

With more than 31,000 patients on the drug, there have been no new confirmed cases of the infection since relaunch.

"Tysabri sales were significantly above expectations, beating our above-consensus estimate of $190 million," JPMorgan analyst Geoff Meacham said in a research note.

"The long-term Tysabri outlook continues to improve."

The company said on a conference call with analysts that doctors appear to be switching patients to Tysabri earlier in the MS treatment regimen.

REVENUE JUMPS

Biogen said it remained confident of meeting its goal of 100,000 patients on the drug by the end of 2010 and that it expected growth outside the United States to outpace domestic growth.

Revenue for the quarter jumped 28 percent to $993 million, topping Wall Street estimates of $962.6 million. Biogen raised its full-year revenue forecast to $4 billion.

Cambridge, Massachusetts-based Biogen said it now expected full-year earnings above $3.50 per share, excluding items, up from its prior forecast of $3.25 to $3.45 per share.

The forecast represents growth consistent with the company's goal of 20 percent earnings per share compounded annual growth through 2010.

"After a while, you have to believe that they really can grow at this 20 to 30 percent level," said Sanford Bernstein analyst Geoffrey Porges. "This is the third straight quarter of better-than-expected performance."

Sales of Biogen's older multiple sclerosis drug, Avonex, rose 14 percent to $527 million, helped by price increases.

Revenue from Rituxan, the non-Hodgkin's lymphoma and rheumatoid arthritis drug Biogen sells in a joint arrangement with Genentech Inc DNA.N, rose 21 percent to $279 million.

The quarterly performance appears to justify shareholder confidence in Biogen's leadership.

Icahn had accused Biogen management of bungling or sabotaging an effort to sell itself and lobbied shareholders heavily in an attempt to get his slate of directors elected to the board. Shareholders overwhelmingly voted for the company's slate of directors, handing Icahn a resounding defeat.

Chief Financial Officer Paul Clancy said in an interview the company would have five new drugs in pivotal clinical trials this year -- an oral MS drug, two cancer medicines and a pair of heart drugs.

Bernstein's Porges said the potential value of the products in late stage development remained to be determined but he added that Biogen could realistically have two or three new product approvals in 2010 or 2011.

Biogen shares were up 5.5 percent at $70.52 on Nasdaq. (Reporting by Bill Berkrot; Editing by Derek Caney and Ted Kerr)