Biogen (BIIB) Q1 2024 Earnings

Biogenic On Wednesday reported First-quarter profit beat estimates as the corporate’s cost-cutting efforts prevailed and sales of its closely watched Alzheimer’s drug Leqembi got here in higher than expected.

Biogenic and EisaiLeqembi was approved within the US in July as the primary drug proven to slow the progression of Alzheimer’s disease. The treatment’s rollout was slow, but adoption appeared to speed up toward the top of the primary quarter.

Leqembi generated sales of about $19 million within the quarter, in comparison with the $10 million the drug generated last 12 months. That’s above the $11 million analysts had expected, in accordance with FactSet estimates.

Biogen says the variety of patients receiving the therapy has increased nearly 2.5-fold for the reason that end of 2023. The company added that the number of recent patients starting Leqembi surged in March, accounting for greater than 20% of the whole patients currently receiving the treatment.

Biogen didn’t provide information on a particular variety of patients who used Leqembi. But in February, Biogen CEO Chris Viehbacher told reporters that about 2,000 patients are currently taking Leqembi. Biogen and Eisai had previously aimed to treat 10,000 patients by March, but said in February they might not meet the goal.

Biogen is seeing “very strong momentum” in its Leqembi rollout and expects quarterly growth in patient numbers, but that increase will not be linear, Viehbacher said during a conference call Wednesday. He noted that Biogen plans to expand its marketing force within the U.S. by 30% to support the launch of Leqembi.

Shortages related to Leqembi’s requirements, resembling twice-monthly infusions and regular brain scans, have slowed the drug’s uptake, he added.

The company hopes the drug and other newly launched products will drive growth because it cuts costs and sees declining sales of its multiple sclerosis therapies, a few of which face generic competition.

Shares of Biogen rose 6% on Wednesday following the outcomes.

Here’s what Biogen reported for the primary quarter in comparison with Wall Street’s expectations, based on an analyst survey from LSEG:

• Earnings per share: $3.67 adjusted vs. $3.45 expected
• Revenue: $2.29 billion vs. expected $2.31 billion

The biotech company posted revenue of $2.29 billion within the quarter, down 7% from the identical period last 12 months. For the primary quarter, the corporate reported net income of $393.4 million, or $2.70 per share, in comparison with net income of $387.9 million, or $2.67 per share, within the year-ago period .

Adjusted for one-time items, the corporate reported earnings of $3.67 per share.

Biogen reiterated its full-year 2024 adjusted earnings guidance of $15 to $16 per share. Analysts polled by LSEG had expected full-year earnings of $15.49 per share.

The company also reiterated its 2024 revenue guidance, which calls for a low- to mid-single-digit percentage decline in comparison with last 12 months.

In addition to Leqembi, investors are also eyeing other newly launched drugs.

This includes Skyclarys, which was added through Biogen’s acquisition of Reata Pharmaceuticals in July. This drug had sales of $78 million in the primary quarter.

Analysts had expected sales of $68.8 million, in accordance with FactSet estimates.

The Food and Drug Administration approved Skyclarys last 12 months, making it the primary approved treatment for Friedreich’s ataxia, a rare inherited degenerative disorder that may affect walking and coordination in children ages 5 and older. In February, European Union regulators approved Skyclarys to treat Friedreich ataxia in patients aged 16 and over.

More than 1,100 patients within the U.S. and 300 within the EU are currently taking Skyclarys, Biogen executives said during Wednesday’s earnings call.

Biogen also worked with Sage Therapeutics on the primary pill for postpartum depression, which received FDA approval in August. However, the agency declined to approve the drug for major depressive disorder, which is a much larger market.

Biogen said the pill, called Zurzuvae, generated $12 million in sales in the primary quarter. According to FactSet, analysts had only expected sales of $5 million for this drug.

Meanwhile, Biogen’s first-quarter sales of multiple sclerosis products fell 4% to $1.08 billion as a few of its therapies face competition from cheaper generics.

The company’s one-time blockbuster drug Tecfidera, which faces competition from a generic rival, posted first-quarter sales of $254.3 million, compared with $274.5 million within the year-ago period.

However, in accordance with FactSet, that quantity was higher than analysts’ estimate of $227.7 million.

Vumerity, an oral drug for relapsing types of multiple sclerosis, had sales of $127.5 million. That was below analyst estimates of $137.9 million, in accordance with FactSet estimates.

Biogen’s rare disease drugs reported sales of $423.9 million, down from $443.3 million in the identical period last 12 months.

Spinraza, a drug used to treat a rare neuromuscular disease called spinal muscular atrophy, had sales of $341.3 million. That was below analysts’ estimate of $415.1 million in revenue, in accordance with FactSet.

Biogen said the timing of Spinraza shipments and increasing competition impacted first-quarter sales comparisons outside the U.S

The company’s biosimilar drugs generated sales of $196.9 million, up barely from $192.4 million within the year-ago period. Analysts had expected sales of $192.5 million from these drugs.

Correction: Skyclarys had revenue of $78 million in the primary quarter. A previous version misstated the quarter.