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Biogen (BIIB) earnings This fall 2023

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Biogen on Tuesday reported fourth-quarter income and revenue that shrank from a yr in the past, because it recorded costs associated to dropping its controversial Alzheimer’s drug Aduhelm and as gross sales slumped in its a number of sclerosis therapies, the corporate’s largest drug class.

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Biogen booked gross sales of $2.39 billion for the quarter, down 6% from the identical interval a yr in the past. Income from a number of sclerosis merchandise fell 8% to $1.17 billion because the therapies face competitors from cheaper generics.

Biogen reported internet earnings of $249.7 billion, or $1.71 per share, for the fourth quarter. That compares with internet earnings of $550.4 billion, or $3.79 per share, for a similar interval a yr in the past. Adjusting for one-time gadgets, the corporate reported $2.95 per share.

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The drugmaker’s fourth-quarter earnings per share, each unadjusted and adjusted, noticed a unfavorable affect of 35 cents related to beforehand disclosed prices of pulling Aduhelm, which had a polarizing approval and rollout within the U.S.

Biogen is reducing prices whereas pinning its hopes on its different Alzheimer’s medicine, together with its intently watched therapy Leqembi, and different newly launched merchandise to switch declining income from its a number of sclerosis therapies.

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This is what Biogen reported for the fourth quarter in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by LSEG: 

  • Earnings per share: $2.95 adjusted vs. $3.18 anticipated
  • Income: $2.39 billion vs. $2.47 billion anticipated

Additionally on Tuesday, Biogen issued full-year 2024 steering that requires adjusted earnings of $15 to $16 per share. Analysts surveyed by LSEG had anticipated full-year earnings steering of $15.65 per share.

The drugmaker stated it expects 2024 gross sales to say no by a low to mid-single digit proportion in comparison with final yr. However the firm expects its pharmaceutical income, which incorporates product income and its 50% share of Leqembi gross sales, to be flat this yr in comparison with 2023.

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The outcomes come amid the rollout of Biogen and Eisai’s Leqembi, which grew to become the primary drug discovered to gradual the development of the illness to win approval within the U.S. final yr.

Eisai, which reported earnings final week, recorded $7 million in fourth-quarter income from Leqembi.

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Biogen CEO Christopher Viehbacher instructed reporters on a media name Tuesday that there are round 2,000 sufferers at present on Leqembi. That makes Biogen’s goal of 10,000 sufferers by the tip of March 2024 look more and more tough to hit, however Viehbacher emphasised that the corporate is targeted extra on the long-term attain of Leqembi quite than assembly that benchmark. 

“I believe what’s essential is we at the moment are making progress,” he instructed reporters. “The ten,000 is not actually onerous and I believe we at the moment are actually specializing in industrial plans — how can we get to the following 100,000?”

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Notably, the low charge of adoption is not as a consequence of lack of demand: There are some 8,000 U.S. sufferers at present ready to get on therapy, executives from Eisai stated on an earnings name final week. 

The businesses are additionally working towards Meals and Drug Administration approval of an injectable version of Leqembi, which confirmed promising preliminary leads to a scientific trial in October. 

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Leqembi is at present administered twice month-to-month by the veins, a technique generally known as intravenous infusion. The injectable type could be a brand new and extra handy possibility for administering the antibody therapy to sufferers, which might pave the best way for increased uptake. 

However traders even have their eyes on different newly launched medicine. 

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That features Skyclarys from Biogen’s $7.3 billion acquisition of Reata Prescribed drugs in July. 

The FDA cleared Skyclarys final yr, making it the primary authorised therapy for Friedreich ataxia, a uncommon inherited degenerative illness that may impair strolling and coordination in kids as younger as 5.

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On Monday, EU regulators approved Skyclarys for the therapy of Friedreich ataxia in sufferers ages 16 and up. 

Biogen will maintain an earnings name at 8:00 a.m. ET.

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This story is growing. Please test again for updates.

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