Biogen Inc. Third Quarter Results Beat Expectations

Biogen Inc. (BIIB, -1.21%) announced its third-quarter results, surpassing analyst estimates despite the challenges posed by the launch of its latest Alzheimer’s treatment, Leqembi.

Financial Performance

In comparison to the previous year, Biogen reported a net loss of $68.1 million, or 47 cents per share, following net income of $1.13 billion, or $7.84 per share. However, adjusted earnings per share reached $4.36, representing a 9% decrease from the previous year but exceeding the FactSet consensus of $3.97 per share. Additionally, total revenue amounted to $2.53 billion, outperforming the FactSet consensus of $2.4 billion.

Updated Outlook

Biogen has revised its full-year sales outlook and now expects a minor decrease in revenue for 2022, instead of a mid-single digit percentage decline as previously projected. However, the company has adjusted its guidance for adjusted earnings per share to a range of $14.50 to $15.00, down from the previous estimate of $15.00 to $16.00. This adjustment is due to approximately 75 cents of dilution resulting from the recently completed acquisition of Reata Pharmaceuticals.

Strategic Focus

With a focus on new products related to Alzheimer’s, postpartum depression, and other conditions, Biogen aims to combat declining sales of its older multiple sclerosis treatments. In line with this strategy, the company plans to eliminate approximately 1,000 jobs as part of a broader cost-cutting plan, targeting savings of around $1 billion.

Biogen’s third-quarter results highlight its ability to navigate challenges while delivering favorable financial performance. The company remains dedicated to addressing critical medical conditions through innovative treatments and maintaining its position in the biotech industry.

Leqembi Faces Slow Launch as Biogen Reports Q3 Research Expenses

Biogen, in collaboration with Eisai Co. Ltd., has experienced a slow launch of their jointly developed product, Leqembi, since receiving approval from the U.S. Food and Drug Administration in July. Biogen CEO, Chris Viehbacher, acknowledged the challenges during a call with reporters earlier this week, stating, “We’re seeing all the green shoots of growth, but it is complex.” One of the complexities lies in the establishment of new care networks that were nonexistent prior to the product’s launch. Biogen incurred $44 million in third-quarter research and development spending related to their collaboration on Leqembi.

To address concerns about convenience and ease of administration, Biogen and Eisai recently released new data on an experimental subcutaneous formulation of Leqembi. This version demonstrates promise in terms of increased efficiency in removing amyloid plaque, a key characteristic of Alzheimer’s disease. Analysts from Oppenheimer noted that the availability of a subcutaneous option “could meaningfully expand patient access to Leqembi.” Eisai, responsible for handling regulatory matters regarding the drug, has plans to submit an application seeking U.S. regulatory approval for the subcutaneous version by March 2024.

In addition to the challenges faced by Leqembi, Biogen also reported a 14% decrease in third-quarter revenues for their multiple sclerosis products. Tecfidera, a blockbuster drug for multiple sclerosis that has been encountering growing generic competition, saw sales decrease from $339 million to $239.5 million compared to the previous year.

Despite these obstacles, Biogen achieved FDA approval in Q3 for Zurzuvae, a treatment targeting postpartum depression. The company anticipates making this drug commercially available before the year comes to a close.

Biogen Expands Portfolio with Acquisition of Reata Pharmaceuticals

Biogen, a leading pharmaceutical company, has successfully concluded its acquisition of Reata Pharmaceuticals. This strategic move aims to enhance Biogen’s range of treatments for rare diseases. As part of the company’s commitment to progress and expansion, CEO Viehbacher expressed that they will continue to invest in business development.

Despite the company’s recent achievements, Biogen’s shares have experienced a decline of 11.3% this year. In comparison, the S&P 500 has witnessed a 14% increase during the same period.