Biogen Inc reported quarterly revenue and profit that beat analysts' estimates, boosted by strong sales of recently launched spinal muscular atrophy drug Spinraza.
Shares of the company, which spun off its hemophilia business in February, were up 4.8 percent at $290.20 in pre-market trading on Tuesday.
Spinraza, a first-of-its-kind medicine for spinal muscular atrophy, the leading genetic cause of death in infants, was approved by the U.S. Food and Drug Administration in December.
The expensive drug generated sales of $47 million, handily beating the consensus estimate by $30 million.
"We saw continued stability in our MS business, executed a strong launch of Spinraza, grew market share for our biosimilars business across Europe, and reinforced the intellectual property for Tecfidera," Chief Executive Officer Michel Vounatsos said in a statement.
Spinraza is the first major drug launch under Vounatsos, who succeeded George Scangos in January.
Sales of Biogen's multiple sclerosis (MS) drug Tysabri came in at $545 million, also well ahead of the consensus estimate of $484 million.
Sales in the latest quarter were boosted by $45 million from an agreement with the Italian health regulator related to prior Tysabri sales.
However, Biogen's MS bestseller, Tecfidera, brought in sales of $958 million, below consensus estimate of $989 million.
Total revenue rose about 3 percent to $2.81 billion, ahead of analysts' average estimate of $2.73 billion, according to Thomson Reuters I/B/E/S.
However, net income attributable fell to $747.6 million, or $3.46 per share, in the first quarter ended March 31, from $970.9 million, or $4.43 per share, a year earlier.
The company said net income was impacted by $263 million in costs related to a deal with Danish company Forward Pharma A/S.
Excluding items, Biogen earned $5.20 per share, eclipsing the average estimate of $4.97.
(Reporting by Natalie Grover in Bengaluru; Editing by Sriraj Kalluvila)