Biogen (NASDAQ:BIIB) shares gained nearly 5% on Thursday after the company beats estimates with its first quarter earnings.
Aggressive cost cutting was a shot in the arm for the biotechnology company whose reorganisation moves began to pay off.
Sales of Biogen's flagship products fell short of analysts' estimates, but the company slashed expenses, with selling, general and administrative costs down 11.3% and research and development spending down 5%.
Last year, Biogen announced a restructuring that involved cutting jobs and development of some medicines to focus on more high-risk, high-reward therapies, such as for Alzheimer's disease.
Excluding one-time items, Biogen earnings per share came in at $4.79, topping analysts' average expectations of $4.47, according to Thomson Reuters I/B/E/S.
The company is enrolling patients for two Phase III trials of its high-profile Alzheimer's drug, aducanumab, and has hopes for an experimental treatment for spinal muscular atrophy in partnership with Ionis Pharmaceuticals (NASDAQ:IONS).
Sales of its most important multiple sclerosis drug Tecfidera rose 15% from a year ago to $946mln in the quarter - missing Wall Street estimates of about $960mln. Sales of the oral drug were hurt by inventory drawdown, which was partially offset by a price increase.
Biogen shares were up 4.3% at $277.43.