Biotech
Wednesday, April 24th, 2024 2:10 pm EDT
Key Points
- Biogen’s first-quarter profit exceeded expectations, driven by cost-cutting efforts and higher-than-expected sales of its Alzheimer’s drug, Leqembi, marking the first drug to slow Alzheimer’s progression approved in the U.S.
- Leqembi sales surged to $19 million for the quarter, surpassing analyst estimates of $11 million, with the number of patients on the therapy nearly doubling since the end of 2023 and accelerating uptake observed in March.
- Despite a 7% revenue decline to $2.29 billion, Biogen reported adjusted earnings per share of $3.67, beating expectations, and reiterated its full-year 2024 adjusted earnings forecast of $15 to $16 per share, along with its 2024 sales guidance of a low- to mid-single-digit percentage decline. Additionally, newly launched drugs like Skyclarys and Zurzuvae outperformed expectations, while revenue from multiple sclerosis products faced challenges from generic competition.
Biogen reported first-quarter profits that surpassed expectations, largely attributed to successful cost-cutting measures and increased sales of its Alzheimer’s drug, Leqembi. Despite a sluggish launch, Leqembi’s sales surged to approximately $19 million for the quarter, surpassing analyst estimates of $11 million. The number of patients using Leqembi nearly doubled since the end of 2023, with a significant increase in new patient starts in March. While Biogen didn’t disclose the exact number of patients on the therapy, CEO Chris Viehbacher previously mentioned around 2,000 patients. The company aims for Leqembi and other newly launched products to drive growth amidst declining sales of multiple sclerosis therapies facing generic competition. Despite reporting a 7% revenue decline to $2.29 billion, Biogen’s net income rose to $393.4 million, or $2.70 per share, up from $387.9 million, or $2.67 per share, a year earlier. Adjusted earnings per share stood at $3.67, surpassing expectations. Biogen reaffirmed its full-year 2024 adjusted earnings forecast of $15 to $16 per share and sales guidance of a low- to mid-single-digit percentage decline compared to the previous year. Other newly launched drugs, including Skyclarys and Zurzuvae, exceeded analyst expectations with $78 million and $12 million in first-quarter sales, respectively. However, revenue from multiple sclerosis products, such as Tecfidera and Vumerity, declined due to generic competition, while Spinraza sales were impacted by timing and increased competition outside the U.S. Biosimilar drugs saw a slight increase in sales to $196.9 million.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/24/biogen-biib-earnings-q1-2024-.html
