I just read the BIIB earning release. First off, they guide down next year numbers below estimate. Second, every major product saw declining revenues except the new oral MS drug . And even the oral MS drug had revenues overstated by $40 million due to stuffing the pipeline.
Rebiff was down in revenues.
Tysabri down in revenues.
Other products down.
Furthermore, the gross revenue growth number was hugely inflated because of the accounting change in which they how consolidate tysabri sales. In prior periods, tysabri revenues were not included in the top line number. These were reported in a separate line item, only showing BIIB's net share of operating profit in tysabri. Now tysabri revenues are included and the comparison period from the prior year has no tysabri revenue. So this makes BIIB's revenue growth look much higher than it really is. (And fo all this accounting revenue growth they are showing from tysabri, tysabri revenues were DOWN). This accounting trick ends soon and the revenue growth number will fall off a cliff.
The oral MS drug will continue to do well, but this is more than factored into the stock price.