Biogen raises annual profit forecast as new treatments boost earnings
2024.10.30 08:34
(Reuters) -Biogen raised its annual profit forecast and exceeded expectations for third-quarter profit on Wednesday, as new treatments and cost cuts helped make up for declining sales of its multiple sclerosis medications.
Shares of the company rose about 1% at $185.20 in premarket trading.
The drugmaker has slashed jobs and pulled the plug on less promising drug candidates in a series of cost-saving measures, focusing on higher-potential products as CEO Christopher Viehbacher takes the lead to bring the cash-strapped biotech back to growth.
The company pinned its hopes on newly launched treatments, including Leqembi, which has seen a slow pick-up in sales in the United States after concerns over cost, efficacy and side effects.
The drug has also been deemed too expensive for the UK’s state-run health service. The EU regulator is expected to wrap up its reexamination of the drug’s rejection this year, Biogen (NASDAQ:) said.
Global sales of Leqembi, which the company sells with Eisai, were about $67 million for the reported quarter, beating Wall Street estimates of $56 million, according to brokerage Piper Sandler. U.S. sales of the drug clocked up $39 million.
Sales of its multiple sclerosis drugs, including Tecfidera, fell 9% to $1.05 billion. Spinal muscular atrophy medicine Spinraza’s $381.4 million sales missed estimates of $430.5 million, as it faced competition from rival drugs made by Roche and Novartis (SIX:).
One of Biogen’s newer rare-disease drugs, Skyclarys, brought in $102.3 million for the quarter, compared with an expectation of $108.5 million, according to data compiled by LSEG.
Sales of amyotrophic lateral sclerosis drug Qalsody, approved in the U.S. last year, also beat analyst estimates.
Biogen now expects annual adjusted profit of between $16.10 per share and $16.60 per share, compared with its previous forecast of a $15.75 to $16.25 per-share range.
The company reported an adjusted profit of $4.08 per share, topping an expectation of $3.79 per share.
