In this illustration, taken on December 1, 2021, a test tube can be seen in front of the Biogen logo displayed.
Ruvik Dice | Reuters
Biogen It reported second-quarter earnings and revenue on Thursday that beat estimates and raised full-year guidance as the company showed progress in cost cuts and sales of its breakthrough Alzheimer’s drug Leqembi and other new products topped expectations.
Biogen now expects full-year adjusted earnings of $15.75 to $16.25 per share, up from its previous forecast of $15 to $16 per share.
The biotech company also expects sales to decline by a low-single-digit percentage in 2024. Biogen had previously expected a low to mid-single-digit percentage decline from last year.
Leqembi, shared by Biogen and Eisai, became the second drug shown to slow the progression of Alzheimer’s disease to be approved in the United States last summer. The treatment’s rollout has been gradual due to bottlenecks related to diagnostic testing requirements and regular brain scans.
But Leqembi’s sales appear to be picking up, with sales of about $40 million this quarter. That was higher than analysts’ expectations of $31 million, according to estimates compiled by StreetAccount.
Sales of the drug were just $10 million after its launch last year.
Still, Leqembi faces hurdles in Europe, where the European drug regulator has recommended against approving the treatment because of the risk of brain swelling and bleeding. The companies will seek to review the decision.
The biotech hopes Leqembi and other new products will drive growth as it lowers costs and combats declining demand for multiple sclerosis treatments, some of which face competition from cheaper generics. Total cost savings are expected to be approximately $1 billion by the end of 2025, according to Biogen annual report In February.
Here’s how Biogen reported second-quarter results compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $5.28, expected $4.03
- income: US$2.47 billion, expected US$2.38 billion
Biogen’s sales for the quarter were $2.47 billion, essentially the same as the same period last year.
The drugmaker reported second-quarter net income of $583.6 million, or $4 per share. This compares with net income of $591.6 million, or $4.07 per share, in the same period last year.
Adjusting for one-time items, the company reported earnings of $5.28 per share.
In addition to Leqembi, investors are also paying close attention to other newly launched drugs. That includes Skyclarys, which emerged from Biogen’s acquisition of Reata Pharmaceuticals in July.
Sales of the treatment reached $100 million in the second quarter. Analysts had expected the drug to post revenue of $92.3 million in the current quarter, according to StreetAccount.
The U.S. Food and Drug Administration approved Skyclarys last year, making it the first drug approved to treat Friedreich’s ataxia. Can impair walking and coordination in children as young as 5 years old.
Zurzuvae, the first drug to treat postpartum depression, had sales of $14.9 million in the second quarter. Analysts had expected sales of just $11 million for the drug, StreetAccount estimated.
Biogen shares the pill with Sage Therapeutics
Meanwhile, Biogen’s second-quarter multiple sclerosis treatment sales fell 5% to $1.15 billion as some products faced competition from cheaper generics.
Still, sales of some of the drugs were higher than expected.
For example, Tecfidera’s second-quarter revenue of $252.2 million was relatively flat compared with the same period last year. Analysts had expected the once-famous drug to generate $233.3 million in revenue this quarter, according to StreetAccount.
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