Biogen on Thursday reported Second-quarter earnings and revenue beat estimates and raised full-year guidance as the corporate's cost-cutting efforts showed progress and sales of its breakthrough Alzheimer's drug Leqembi and other latest 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, in line with StreetAccount estimates.
After its launch last 12 months, the drug generated sales of just $10 million.
Biogen didn’t disclose what number of patients are currently taking Leqembi. In May, the corporate said about 5,000 people were taking the drug.
Nevertheless, Leqembi faces hurdles in Europe, where a drug regulator has advised against approving the drug due to the risk of brain swelling and bleeding. Biogen was “quite surprised and quite stunned” by the choice and can seek a brand new review, said company boss Chris Viehbacher in a press conference on Thursday.
Biogen hopes Leqembi and other latest products will fuel growth as the corporate cuts costs and grapples with falling demand for its multiple sclerosis therapies, a few of which face competition from cheaper generics.
“I can say today that all product launches met or exceeded expectations,” he said.
According to Viehbacher, the corporate is on course to realize gross cost savings of roughly $1 billion and net cost savings of $800 million by the top of 2025.
Viehbacher added: “While our operating expenses have decreased significantly, we have been able to invest heavily in the launch of new products and in the research and development projects that we consider most important.”
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, in line with 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.
Viehbacher said Skyclarys' launch goes “extremely well.” The company expects to launch the drug in 20 countries by the top of the 12 months, he added.
Zurzuvae, the primary pill to treat postnatal depression, posted second-quarter sales of $14.9 million. Analysts had only expected sales of $11 million, in line with 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, in line with StreetAccount.
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