Biogen Raises Profit Forecast, Indicates Progress in Turnaround Efforts By Reuters

By Manas Mishra and Mariam Sunny

Biogen has increased its profit forecast for the year, citing cost-cutting measures and stronger-than-expected sales across its range of treatments. This comes despite a sluggish adoption of its Alzheimer’s medication.

CEO Christopher Viehbacher, who has been leading a turnaround at Biogen since he took the helm in 2022, stated that the company is now poised for growth following a series of cost-reduction initiatives, several acquisitions, and a sharpened focus on upcoming product launches.

"We’re not done yet, and we’ve certainly faced a few setbacks along the way. But I believe we can now concentrate on sustainable growth," Viehbacher shared with reporters.

In the second quarter, Biogen exceeded profit estimates, largely driven by the strong performance of its newer drugs, particularly the treatment for rare diseases called Skyclarys, as well as its established multiple sclerosis therapies.

Sales of the Alzheimer’s drug Leqembi, which Biogen markets in partnership with a Japanese company, reached $40 million, surpassing the $32 million prediction. However, its uptake has been slow due to various requirements, including extra diagnostic tests and regular infusions, along with the recent rejection of its application in the European Union.

Biogen also announced its decision to maintain its biosimilars business after a year-long assessment.

During the second quarter, sales of older multiple sclerosis treatments, which are facing increasing competition, dropped by 4.9% to $1.15 billion but still beat the estimations of $1.4 billion. Meanwhile, Skyclarys generated $100 million in sales, exceeding expectations of $92.06 million.

The company has revised its adjusted earnings forecast for 2024 to between $15.75 and $16.25 per share, up from the previous range of $15 to $16. Its adjusted profit for the second quarter stood at $5.28 per share, significantly above the anticipated $4.03.

As a result, shares of Biogen saw a slight increase, reaching $214.44 in premarket trading. Analyst Michael Yee from Jefferies described the quarter as generally positive but noted that there was "no major thesis change."