In the first-quarter ended March 2015, Biogen [NASDAQ:BIIB] reported total revenues of $2.55 billion, up 20% year-over-year and non-GAAP diluted earnings per share (EPS) of $3.89, up 55% year-over-year. Wall Street was expecting earnings of $3.91 per share on revenues of $2.66 billion. 

The company reported Tecfidera sales of $825 million, down 10% quarter-on-quarter, but up 63% year-on-year, missing Wall Street expectations of $925 million. Biogen said that the decline was partially impacted by one fewer shipping week in the U.S. versus the prior quarter, increased discounts and allowances specific to the first-quarter of 2015 and the impact from foreign exchanges in Germany.

Interferon revenues, including Avonex and Plegridy, were $755 million compared to $761 million in the same quarter last year. Tysabri revenues were up 5% to $463 million, compared to $441 million in the same quarter last year. 

Hemophilia drugs, Alprolix and Eloctate, posted sales of $54 million and $43 million, respectively, compared to $40 million and $37 million in the fourth-quarter 2014. 

Looking forward, Biogen sees a revenue forecast of between $11.06 billion and $11.25 billion in 2015 and non-GAAP diluted EPS of $16.60 to $17.00 per share, compared with analysts' estimates for $16.75 per share and revenue of $11.03 billion.

In March, Biogen announced data from a pre-specified interim analysis of PRIME, the Phase 1b study of aducanumab (BIIB037), in which the compound demonstrated an acceptable safety profile and positive results on radiologic and clinical measurements in patients with prodromal or mild Alzheimer’s disease. 

The drug is designed to lower levels of toxic amyloid beta in the brain while there's still no consensus over what causes the disease or how cure it. Biogen said during the company's earnings call that the results for the 6-mg dose from its Phase 1b Alzheimer's study will be out in July, but the 10-mg numbers will have to wait until next year. 

Some analysts raised concerns about the new schedule for releasing final data as Biogen could reap more than $14.5 billion alone in peak annual sales from aducanumab, which would add substantially to the company's value.

Biogen also reported that the European Medicines Agency (EMA) validated the Marketing Authorisation Application (MAA) for Zinbryta for the treatment of relapsing forms of multiple sclerosis. Zinbryta is being jointly developed by Biogen and AbbVie [NYSE:ABBV].

Biogen is still facing patent litigation from Danish company, Forward Pharma [NASDAQ:FWP], over patent rights for the small molecule dimethyl fumarate (DMF), the same active compound in Biogen’s Tecfidera. In November, Forward Pharma filed a patent infringement lawsuit against Biogen in Germany and asked for damages.

From our technical viewpoint, BIIB broke out the symmetrical triangle in December and a breakout was confirmed in early January. The price projection for BIIB for the symmetrical triangle breakout event is $456 per share, determined by adding the width of the triangle pattern to the point of breakout. 

In March, the stock skyrocketed when the company announced the positive Phase 1b study of aducanumab. The stock retested the upper 2-year trendline resistance at $480 per share and has fallen over 22% since then. If the stock continues to pull back, there are supports at the 200-day SMA and the $345 per share level, or the lower two-year trendline resistance. 

It needs to be pointed out that BIIB is traded along with the Nasdaq Biotechnology Index [NASDAQ:IBB] and maybe counter traded with Market Vectors Semiconductor ETF [NYSEARCA:SMH] or the ETFs in the energy sector.

Argus raised their target price for BIIB on Monday from $440 to $450 while Citigroup Inc.’s price target for BIIB was lowered from $512 to $497. Citigroup Inc. set a BUY rating on the stock.

Disclosure: Long Core Positions BIIB and ABBV in Portfolio