Stifel affirms Biogen (Nasdaq: BIIB) at Hold following Q1 results issued earlier Thursday.

Analyst Thomas Shrader offered the following commentary: Biogen presented 1Q16 financial results today, reporting revenue of $ 2.73 billion, short of our estimate of $2.75 billion. The company’s non-GAAP EPS was $4.79, which topped our estimates of $4.54. Major contributors to revenue contraction were lower TECFIDERA and Interferon sales, resulting in part from a reduction in FX hedging gains and drawdown of inventory. Better bottom line performance was mostly driven by cost control of R&D expenses and stock buy-back. Overall, we view this trajectory as worrisome in a company that was historically fueled by vibrant R&D and market dominance of innovative products.

The analyst moved FY16 EPS estimate from $18.30 up to $20.80 and revenue from $11.44 billion to $11.26 billion. FY17 EPS outlook moves from $20.30 to $20.87 and revenue from $12.84 to $11.53 billion.

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