(Bloomberg) — Biogen Inc. (Nasdaq:BIIB) shares plummeted after the biotechnology company lowered its forecast for 2015 profit and sales, revising expectations for growth as its top-selling multiple sclerosis drug faces tougher competition.
The stock dropped 14 percent to $330 in early trading. Adjusted earnings will be $15.50 to $15.95 a share this year, down from an earlier forecast $16.60 to $17, the company said Friday in a statement. Analysts had estimated $16.74.
Sales of Tecfidera, which treats MS, were $883 million in the second quarter, below analysts’ estimates of $909 million. That marks another disappointing period for the drug, which in the first quarter also fell short of projections.
Analysts have voiced concern that Tecfidera patients were being siphoned away by Novartis AG’s MS drug Gilenya. Novartis’s head of pharmaceuticals said this week more people were using its medicine as a first option.
What Your Peers Are Reading
The quarter was “a messy one to say the least,” Cory Kasimov, an analyst at JPMorgan Chase & Co., said in a note to clients. “This appears to be an ugly quarter that is likely to spook investors and be a significant hit to near-term sentiment.”