Biogen revenue and profit shrink on Aduhelm prices, slumping sales of multiple sclerosis therapies

Biogen revenue and profit shrink on Aduhelm prices, slumping sales of multiple sclerosis therapies

A Biogen facility in Cambridge, Massachusetts.

Brian Snyder | Reuters

Biogen on Tuesday reported fourth-quarter revenue and profit that shrank from a yr in the past, because it recorded expenses associated to dropping its controversial Alzheimer’s drug Aduhelm and as sales slumped in its multiple sclerosis therapies, the corporate’s greatest drug class.

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

The outcomes come as the corporate slashes prices whereas broadening its focus to switch that declining revenue.

Here’s what Biogen reported for the fourth quarter in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by LSEG: 

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

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

Also 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 sales to say no by a low to mid-single digit share in comparison with final yr. But the corporate expects its pharmaceutical revenue, which incorporates product revenue and its 50% share of Leqembi sales, to be flat this yr in comparison with 2023.

The outcomes additionally come amid the intently watched rollout of Biogen and Eisai’s Alzheimer’s drug, Leqembi, which turned the primary drug discovered to sluggish the development of the illness to win approval within the U.S. final yr. Leqembi marks a brand new chapter for Biogen after the polarizing approval and rollout of its older Alzheimer’s drug, Aduhelm, which the corporate dropped final month. 

Biogen’s fourth-quarter earnings per share, each unadjusted and adjusted, noticed a damaging influence of 35 cents related to beforehand disclosed prices of pulling Aduhelm, it stated Tuesday.

Investors are looking ahead to when the businesses will file for Food and Drug Administration approval of an injectable version of Leqembi, which confirmed promising preliminary ends in a scientific trial in October. 

Leqembi is at present administered twice month-to-month by way of 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 greater uptake. 

But buyers even have their eyes on different newly launched medicine. 

That contains Skyclarys from Biogen’s $7.3 billion acquisition of Reata Pharmaceuticals in July. 

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

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.

This story is growing. Please test again for updates.

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