Biogen reported second-quarter earnings and revenue that surpassed estimates, raising its full-year guidance due to successful cost-cutting measures and robust sales of its Alzheimer’s drug, Leqembi, and other new products. The company now projects full-year adjusted earnings of $15.75 to $16.25 per share, up from the previous forecast of $15 to $16 per share. However, Biogen expects 2024 sales to decline by a low-single-digit percentage, compared to its earlier projection of a low- to mid-single-digit decrease.
Leqembi, developed in partnership with Eisai, became the second U.S.-approved drug to slow Alzheimer’s progression last summer. Despite a gradual launch hindered by diagnostic and brain scan requirements, Leqembi’s uptake is accelerating, with $40 million in quarterly sales, surpassing analysts’ $31 million expectations. This is a significant increase from the $10 million in sales following its initial launch. Biogen did not disclose the current number of Leqembi patients, although it reported around 5,000 users in May.
Leqembi faces challenges in Europe, where regulatory concerns about brain swelling and bleeding risks led to a recommendation against approval. CEO Chris Viehbacher expressed surprise at this decision and indicated plans to seek a reexamination.
Biogen aims to drive growth through Leqembi and other new products while reducing costs amid declining demand for its multiple sclerosis therapies, some of which are now facing competition from generics. The company is on track to achieve approximately $1 billion in gross cost savings, or $800 million in net savings, by the end of 2025. Despite significant reductions in operating expenses, Biogen continues to invest in new product launches and critical research and development projects.
For the second quarter, Biogen reported adjusted earnings per share of $5.28, exceeding the expected $4.03, and revenue of $2.47 billion, higher than the anticipated $2.38 billion. Net income was $583.6 million, or $4 per share, compared to $591.6 million, or $4.07 per share, a year ago.
Newly launched drugs are under close watch by investors. Skyclarys, acquired from Reata Pharmaceuticals, reported $100 million in sales for the second quarter, surpassing the $92.3 million expected. Skyclarys is the first FDA-approved treatment for Friedreich’s ataxia, a rare degenerative disease. Biogen plans to market Skyclarys in 20 countries by the year-end. Zurzuvae, the first pill for postpartum depression, achieved $14.9 million in second-quarter sales, exceeding the $11 million forecast.
However, some drugs, like Tecfidera, performed better than expected, with $252.2 million in revenue, slightly above analysts’ expectations of $233.3 million.
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