Biogen on Thursday, the corporate reported second-quarter earnings and revenue that beat estimates and raised its full-year forecast as the corporate’s cost-cutting efforts showed progress and sales of its breakthrough Alzheimer’s drug Leqembi and other recent products exceeded expectations.
Biogen now expects full-year adjusted earnings of $15.75 to $16.25 per share. The previous forecast was $15 to $16 per share.
The biotech company also expects a low single-digit percentage decline in sales for 2024. Biogen’s previous forecast assumed a low to mid single-digit percentage decline in comparison with the previous 12 months.
Leqembi, which Biogen shares with Eisai, became the second drug shown to slow the progression of Alzheimer’s disease to be approved within the U.S. last summer. The therapy has been slow to roll out because of bottlenecks in requirements for diagnostic tests and regular brain scans, amongst other things.
But demand for Leqembi appears to be increasing. Sales of around $40 million were generated within the quarter, which is higher than the $31 million expected by analysts, based on StreetAccount estimates.
After its launch last 12 months, the drug generated sales of just $10 million.
Nevertheless, Leqembi is facing hurdles in Europe, as a drug authority advisable not approving the drug since it could lead on to brain swelling and bleeding. The corporations wish to seek a review of their decision.
Biogen hopes Leqembi and other recent products will fuel growth because it cuts costs and grapples with falling demand for its multiple sclerosis therapies, a few of which face competition from cheaper generics. The company expects to attain gross cost savings of about $1 billion by the tip of 2025, based on its Annual Report in February.
Here’s what Biogen reported for the second quarter, in comparison with Wall Street expectations, based on an LSEG analyst survey:
- Earnings per share: $5.28 adjusted vs. $4.03 expected
- Revenue: $2.47 billion in comparison with expected $2.38 billion
Biogen reported revenue of $2.47 billion for the quarter, roughly the identical because the previous 12 months.
The pharmaceutical company reported net income of $583.6 million, or $4 per share, within the second quarter. In the identical period last 12 months, net income was $591.6 million, or $4.07 per share.
Adjusted for one-time items, the corporate reported earnings of $5.28 per share.
In addition to Leqembi, investors are also closely watching other newly launched drugs, including Skyclarys, which was created from Biogen’s acquisition of Reata Pharmaceuticals in July 2023.
The drug generated sales of $100 million within the second quarter. Analysts had expected the drug to herald $92.3 million within the quarter, based on StreetAccount.
The US Food and Drug Administration gave Skyclarys the green light last 12 months, making it the primary approved drug for Friedreich’s ataxia, a rare degenerative genetic disease that may affect walking and coordination in children as young as five.
Zurzuvae, the primary pill to treat postnatal depression, posted second-quarter sales of $14.9 million. Analysts had only expected sales of $11 million, based on StreetAccount estimates.
Biogen is releasing this pill jointly with Sage Therapeutics.
Meanwhile, Biogen’s sales of multiple sclerosis treatments fell 5% to $1.15 billion within the second quarter as some products face competition from cheaper generics.
Nevertheless, a few of these drugs achieved higher sales than expected.
Tecfidera, for instance, posted second-quarter sales of $252.2 million, relatively unchanged from the identical period last 12 months. Analysts had expected the once-blockbuster drug to post quarterly sales of $233.3 million, based on StreetAccount.
Clarification: This story has been updated to make clear that Biogen acquired Reata Pharmaceuticals in July 2023.
