(Updated - July 21, 2016 7:02 AM EDT)

Biogen (NASDAQ: BIIB) reported Q2 EPS of $5.21, $0.53 better than the analyst estimate of $4.68. Revenue for the quarter came in at $2.89 billion versus the consensus estimate of $2.79 billion.

Buyback Plan:

Biogen also announced that its Board of Directors authorized a program to repurchase up to $5 billion of the Company’s common stock. Biogen currently expects that purchases will be executed over the next three years. This share repurchase program is in addition to the approximately 1.3 million shares remaining under Biogen's February 2011 share repurchase program, which has been used principally to offset common stock issuances under the Company's share-based compensation plans.

Guidance:

Biogen updated its full year 2016 financial guidance. This guidance consists of the following components:

• Revenue is expected to be approximately $11.2 to $11.4 billion. (The Street sees $11.3 billion.)
• GAAP and non-GAAP R&D expense is expected to be approximately 17% to 18% of total revenue.
• GAAP and non-GAAP SG&A expense is expected to be approximately 16% to 17% of total revenue.
• GAAP diluted EPS is expected to be between $18.10 and $18.40.
• Non-GAAP diluted EPS is expected to be between $19.70 and $20.00. (The Street sees $18.96.)

This guidance includes contribution from our hemophilia business through the end of the year, as we now anticipate the spin-off to complete in early 2017. This guidance does not include any impact from potential acquisitions or late-stage business development transactions.

Biogen may incur charges, realize gains or experience other events in 2016 that could cause actual results to vary from this guidance.

CEO Transition

Biogen today announced that George Scangos, its Chief Executive Officer, will be leaving the Company in the coming months after a successor has been identified. The Company will begin a search for his successor immediately. Dr. Scangos has been at Biogen for six years and has led the Company through a remarkable transformation. Under his leadership, Biogen’s revenues, earnings and stock price all have increased meaningfully and the Company has been transformed into a world-class biopharmaceutical company.

Stelios Papadopoulos, Chairman of the Biogen Board of Directors, remarked “George joined Biogen at a very challenging time. He re-organized operations and he oversaw the enrichment of our product pipeline and the launch of several products. In short, George did an outstanding job and I believe he is leaving the Company well positioned for success.”

“The past six years have been quite successful,” said Dr. Scangos. “We have introduced six new products onto the market, increased our earnings and revenues several fold, and transformed our R&D and commercial organizations to world-class levels, joining our already industry leading biologics manufacturing capabilities. We have brought several potentially transformative compounds into later stage clinical development and are in the process of adding to that pipeline even further.”

“The Company has an exciting future and I am proud to have had a role in helping Biogen improve the lives of so many patients today and so many more in the future,” added Dr. Scangos. “This is the right time for a new leader to take the reins and lead Biogen through its next stage of development, and I look forward to returning to the West coast to take on one more set of activities and spend more time with my family.”

The Board will immediately begin a search for a replacement, and will consider both internal and external candidates. The Company expects the transition to occur over a period of a few months, and in the interim, Dr. Scangos will continue to serve as CEO.

For earnings history and earnings-related data on Biogen (BIIB) click here.