Biogen reported strong second-quarter earnings and revenue on Thursday, surpassing market expectations and prompting the company to raise its full-year guidance. The biotech firm’s cost-cutting measures have begun to show positive results, while sales of its innovative Alzheimer’s drug, Leqembi, and other new products exceeded forecasts.
Biogen now anticipates full-year adjusted earnings of $15.75 to $16.25 per share, up from its previous estimate of $15 to $16 per share. Despite this optimism, the company projects a slight decline in 2024 sales, revising its outlook to a low-single-digit percentage decrease from last year’s figures.
Leqembi, co-developed with Eisai, is only the second drug approved in the U.S. that has been proven to slow Alzheimer’s progression. Although the drug’s rollout has been gradual due to diagnostic and logistical challenges, it generated approximately $40 million in sales during the second quarter, surpassing analysts’ expectations of $31 million.
While Leqembi faces regulatory hurdles in Europe, where approval was recently denied due to concerns over potential brain swelling and bleeding, Biogen remains committed to seeking a reexamination of this decision. CEO Chris Viehbacher expressed the company’s surprise and determination to overturn the ruling.
Biogen is relying on Leqembi and other new products to drive future growth as it simultaneously reduces costs and addresses declining demand for its multiple sclerosis (MS) therapies, which are under pressure from generic competition. The company is on track to achieve approximately $1 billion in gross cost savings, or $800 million in net savings, by 2025.
The second quarter also saw promising performances from other newly launched drugs. Skyclarys, acquired through Biogen’s purchase of Reata Pharmaceuticals, generated $100 million in sales, exceeding expectations. Additionally, Zurzuvae, the first oral treatment for postpartum depression, posted $14.9 million in sales, also surpassing projections.
Despite a 5% decline in MS therapy sales, Biogen‘s overall revenue for the quarter remained flat year-over-year at $2.47 billion, in line with market forecasts. Adjusted earnings were $5.28 per share, significantly higher than the expected $4.03 per share.
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