Biogen (BIIB) earnings Q2 2024

Biogen on Thursday reported second-quarter earnings and revenue that topped estimates and hiked its full-year guidance, as the corporate’s cost cuts showed progress and sales of its breakthrough Alzheimer’s drug, Leqembi, and other latest products beat expectations. 

Biogen now expects full-year adjusted earnings to are available at $15.75 to $16.25 per share, up from a previous forecast of $15 to $16 per share.

The biotech company also expects 2024 sales to say no by a low-single-digit percentage. Biogen’s previous outlook was a low- to mid-single-digit percentage decrease from last yr. 

Leqembi, which Biogen shares with Eisai, became the second drug proven to slow the progression of Alzheimer’s to win approval within the U.S. last summer. The therapy’s launch has been gradual as a result of bottlenecks related to diagnostic test requirements and regular brain scans, amongst other issues. 

But uptake of Leqembi appears to be picking up, with roughly $40 million in sales for the quarter. That is above the $31 million analysts had expected, in line with estimates compiled by StreetAccount. 

The drug posted just $10 million in sales last yr following its launch. 

Biogen didn’t disclose what number of patients are currently on Leqembi. The corporate in May said roughly 5,000 people were taking the drug.

Still, Leqembi faces hurdles in Europe, where a drug regulator really useful against approving the treatment as a result of its risk of brain swelling and bleeding. Biogen was “quite surprised and reasonably perplexed” by the choice and can seek a reexamination of it, the corporate’s CEO Chris Viehbacher told reporters on a press call Thursday.

Biogen hopes Leqembi and other latest products will drive growth because it reduces costs and grapples with plunging demand for its multiple sclerosis therapies, a few of which face competition from cheaper generics. 

“I can say today that each one of the launches are in step with or ahead of expectations,” he said.

The corporate is on the right track to attain roughly $1 billion in gross cost savings, or $800 million in net savings, by the top of 2025, in line with Viehbacher.

Viehbacher added that “while you may see a major decline in our operating expenses, we now have at the identical time, been able to speculate massively in our latest product launches and in those research and development projects that we expect are crucial.”

Here’s what Biogen reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $5.28 adjusted vs. $4.03 expected
• Revenue: $2.47 billion vs. $2.38 billion expected

Biogen booked sales of $2.47 billion for the quarter, which is roughly flat from the year-earlier period.

The drugmaker posted net income of $583.6 million, or $4 per share, for the second quarter. That compares with net income of $591.6 million, or $4.07 per share, for a similar period a yr ago. 

Adjusting for one-time items, the corporate reported earnings of $5.28 per share. 

Investors are closely watching other newly launched drugs other than Leqembi. That features Skyclarys, which got here from Biogen’s acquisition of Reata Pharmaceuticals in July 2023. 

The treatment booked $100 million in sales for the second quarter. Analysts had expected the drug to soak up $92.3 million for the quarter, in line with StreetAccount. 

The Food and Drug Administration greenlit Skyclarys last yr, making it the primary approved treatment for Friedreich’s ataxia, a rare inherited degenerative disease that may impair walking and coordination in children as young as 5. 

Viehbacher said the launch of Skyclarys goes “extremely well.” The corporate expects to market the drug in 20 countries by the top of the yr, he added.

Zurzuvae, the primary pill for postpartum depression, generated second-quarter sales of $14.9 million. Analysts had expected just $11 million in sales of that drug, StreetAccount estimates said.

Biogen shares that pill with Sage Therapeutics.

Meanwhile, Biogen’s second-quarter sales from multiple sclerosis treatments fell 5% to $1.15 billion as some products face competition from cheaper generics. 

Still, a few of those drugs posted higher-than-expected sales. 

Tecfidera, for instance, booked $252.2 million in revenue within the second quarter, which is comparatively flat from the year-earlier period. Analysts had expected the once-blockbuster drug to rake in $233.3 million in revenue for the quarter, in line with StreetAccount.

Clarification: This story has been updated to make clear that Biogen acquired Reata Pharmaceuticals in July 2023.