Biotech
Tuesday, February 13th, 2024 4:19 pm EDT
Key Points
- Biogen reported a decline in fourth-quarter revenue and profit compared to the previous year due to charges related to discontinuing its Alzheimer’s drug Aduhelm and a slump in sales of its multiple sclerosis therapies, its largest drug category. Revenue for the quarter was $2.39 billion, down 6% from the same period a year ago, with net income of $249.7 million, or $1.71 per share, compared to $550.4 million, or $3.79 per share, a year ago. Adjusted earnings per share were $2.95, impacted negatively by 35 cents associated with costs related to Aduhelm.
- Biogen is focusing on cost-cutting measures while relying on its other Alzheimer’s drugs, such as Leqembi, and newly launched products to offset declining revenue from multiple sclerosis therapies. Despite exceeding expectations in earnings and revenue, the company’s stock fell nearly 7% in early trading. Full-year 2024 guidance calls for adjusted earnings of $15 to $16 per share, with a decline in sales expected for the year compared to the previous year.
- Multiple sclerosis drug sales decreased in the fourth quarter, with revenue falling 8% to $1.17 billion, attributed to competition from cheaper generics. However, revenue from rare disease drugs increased, and the rollout of Leqembi, the first drug approved to slow Alzheimer’s disease progression in the U.S., is underway. Although current adoption of Leqembi is below expectations, efforts are underway to increase uptake, including the development of an injectable version. Additionally, Biogen’s newly launched drugs, such as Skyclarys for Friedreich ataxia and Zurzuvae for postpartum depression, show promise despite regulatory challenges and modest sales figures.
Biogen’s fourth-quarter financial report revealed a decline in both revenue and profit compared to the previous year, attributed in part to charges associated with discontinuing its controversial Alzheimer’s drug, Aduhelm, and a decrease in sales of its multiple sclerosis therapies. The company reported $2.39 billion in revenue for the quarter, down 6% from the same period last year, with a net income of $249.7 million, or $1.71 per share, a significant drop from $550.4 million, or $3.79 per share, a year ago. Adjusting for one-time items, the company reported $2.95 per share. Biogen’s fourth-quarter earnings per share were negatively impacted by 35 cents due to previously disclosed costs related to Aduhelm. While the company is reducing costs, it is banking on its other Alzheimer’s drugs and newly launched products to offset declining revenue from its multiple sclerosis therapies. Despite exceeding expectations in earnings and revenue, Biogen’s stock fell nearly 7% in early trading. The company issued guidance for full-year 2024, expecting adjusted earnings of $15 to $16 per share, below analysts’ expectations. Sales of its multiple sclerosis products declined in the fourth quarter, particularly its once-blockbuster drug Tecfidera, facing competition from generics. On the other hand, revenue from rare disease drugs increased, with Spinraza, used to treat spinal muscular atrophy, recording $412.6 million in sales. The launch of Leqembi, the first drug approved to slow Alzheimer’s disease progression in the U.S., has been slow, with around 2,000 patients currently on the treatment, falling short of the target of 10,000 by March 2024. However, the companies are working on an injectable version of Leqembi, aiming to improve accessibility and uptake. Additionally, Biogen’s other newly launched drugs, such as Skyclarys for Friedreich ataxia and Zurzuvae for postpartum depression, have shown promising results but face challenges in adoption and regulatory approval for broader indications.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/13/biogen-biib-earnings-q4-2023.html
