A take a look at tube is seen in entrance of displayed Biogen emblem on this illustration taken on, December 1, 2021.
Dado Ruvic | Reuters
Biogen on Wednesday posted fourth-quarter income and revenue that topped expectations as its price cuts confirmed progress and new merchandise, together with its breakthrough Alzheimer’s remedy Leqembi, noticed progress.
However the biotech firm’s steering for the present 12 months missed Wall Road’s expectations. Biogen issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, which fell wanting the $16.34 per share that analysts have been anticipating, in accordance with LSEG. That displays a international trade headwind of 35 cents per share, Biogen stated.
Biogen expects income to say no by a “mid-single digit” proportion in 2025 in contrast with 2024, as gross sales of its a number of sclerosis merchandise fall. That portion of the enterprise has declined for a number of quarters as a few of these therapies face generic competitors.
However Biogen expects Leqembi, together with its new uncommon illness and melancholy therapies, to assist offset that sliding income this 12 months.
Leqembi generated $87 million in income for the fourth quarter, together with $50 million within the U.S. Analysts had anticipated the drug to ebook $67 million in gross sales, in accordance with estimates from StreetAccount.
Leqembi, which Biogen shares with the Japanese drugmaker Eisai, grew to become the second drug confirmed to gradual the development of Alzheimer’s to win approval within the U.S. in 2023. The remedy’s launch has been gradual attributable to bottlenecks associated to diagnostic take a look at necessities, the necessity for normal mind scans and the issue of discovering neurologists, amongst different points.
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: $3.44 adjusted vs. $3.35 per share anticipated
- Income: $2.46 billion vs. $2.40 billion anticipated
Biogen booked gross sales of $2.46 billion for the quarter, which is up round 3% from the year-earlier interval.
The drugmaker posted internet earnings of $266.8 million, or $1.83 per share, for the quarter. That compares with internet earnings of $249.7 million, or $1.71 per share, for a similar interval a 12 months in the past.
Adjusting for one-time objects, together with sure restructuring prices and prices related to intangible property, the corporate reported earnings of $3.44 per share.
Biogen first initiated a cost-cutting program in 2023. The corporate expects to generate $1 billion in gross financial savings, or $800 million internet financial savings, by the tip of 2025.
Additionally on Wednesday, Royalty Pharma introduced an settlement to offer $250 million in analysis and improvement funding to Biogen for litifilimab, a key drug in its pipeline that’s being studied to deal with lupus. Royalty Pharma, a number one funder of the biotech and pharmaceutical trade, will probably be eligible for regulatory milestones and sure royalties.
Different new medication
One other new drug, Skyclarys, booked $102 million in gross sales for the fourth quarter, nearly double what it reported within the year-earlier interval.
Analysts had anticipated gross sales of round $112 million for the quarter, in accordance with StreetAccount.
Skyclarys got here from Biogen’s acquisition of Reata Prescription drugs in July 2023. The Meals and Drug Administration greenlit Skyclarys in 2023, making it the primary accredited remedy for Friedreich’s ataxia, a uncommon inherited degenerative illness that may impair strolling and coordination in kids as younger as 5.
Zurzuvae, the primary capsule for postpartum melancholy, generated fourth-quarter gross sales of $22.9 million. Analysts had anticipated it to publish $26 million in gross sales, StreetAccount estimates stated.
In the meantime, Biogen’s fourth-quarter gross sales from a number of sclerosis therapies fell 8% to $1.07 billion.
Correction: Biogen’s fourth-quarter gross sales from a number of sclerosis therapies fell to $1.07 billion. An earlier model misstated the interval.
