Biogen tops profit estimates as cost-cutting drives Alzheimer’s drug Lecambi launch

Biogen on Wednesday Reported A primary-quarter profit that topped estimates as the corporate’s cost-cutting efforts gained momentum and sales of its Alzheimer’s drug, Lecimbi, beat expectations.

Biogen and SuchLeqembi became the primary drug to slow the progression of Alzheimer’s disease to achieve approval within the US in July. The onset of treatment has been slow, but appears to speed up in the primary trimester.

Leqembi generated sales of about $19 million within the quarter, up from $10 million for the drug last 12 months. That beat analysts’ expectations of $11 million, based on estimates compiled by FactSet.

According to Biogen, the variety of patients on the therapy has increased by about 2.5 times by the tip of 2023. The company added that the number of recent patients starting Lekambi increased in March, now accounting for greater than 20 percent of total patients on treatment.

Biogen didn’t provide the particular variety of patients using Leqembi. In February, Biogen CEO Chris Wehbacher told reporters that Lakembi currently has about 2,000 patients.

The company hopes the drug and other newly launched products will drive growth as it cuts costs and sees declining sales of its multiple sclerosis treatments, a few of which face generic competition. Is.

Here’s what Biogen reported in the primary quarter in comparison with Wall Street’s expectations, based on an LSEG survey of analysts:

• Earnings per share: $3.67 adjusted vs $3.45 expected
• Revenue: $2.29 billion vs. $2.31 billion expected

The biotech company booked sales of $2.29 billion for the quarter, down 7% from the identical period a 12 months ago. It reported net income of $393.4 million, or $2.70 per share, for the primary quarter, up from net income of $387.9 million, or $2.67 per share, for a similar period a 12 months ago.

Adjusting for one-time items, the corporate reported earnings of $3.67 per share.

Biogen reiterated its full-year 2024 adjusted earnings forecast of $15 to $16 per share. Analysts surveyed by LSEG had expected full-year earnings guidance of $15.49 per share.

The company also reiterated a low- to mid-single-digit percentage decline in 2024 sales guidance in comparison with last 12 months.

Apart from Leqembi, investors are also eyeing other newly launched drugs.

This includes Skyclaris, which was brought in by Biogen’s acquisition of Reata Pharmaceuticals in July. The drug brought in $78 million in revenue within the fourth quarter.

Analysts had expected sales of $68.8 million, based on FactSet estimates.

The Food and Drug Administration cleared Skyclaris last 12 months, making it the primary approved treatment for Friedreich’s ataxia, a rare inherited degenerative disease that affects movement and coordination in children younger than 5 years old. Can damage. In February, EU regulators approved Skyclaris for its treatment. Friedreich’s ataxia in patients 16 years of age and older.

Biogen has also partnered with Sage Therapeutics on the primary pill for postpartum depression, which won FDA approval in August. But the agency declined to clear the drug for major depressive disorder, an enormous market.

Biogen said the pill, Zurzuvae, generated $12 million in sales in the primary quarter. Analysts had expected just $5 million in sales for the drug, FactSet said.

Meanwhile, first-quarter revenue from Biogen’s multiple sclerosis products fell 4% to $1.08 billion as a few of its treatments face competition from cheaper generics.

The company’s one-time blockbuster drug Tecfidera, which faces competition from a generic rival, posted revenue of $254.3 million in the primary quarter, down from $274.5 million in the identical period a 12 months earlier.

Still, that is higher than analysts’ estimate of $227.7 million, based on FactSet.

Vumerity, an oral drug for relapsing types of multiple sclerosis, generated $127.5 million in sales. That got here in below analysts’ estimate of $137.9 million, based on FactSet estimates.

Biogen’s rare disease drug sales recorded $423.9 million, down from $443.3 million in the identical period a 12 months ago.

Spinraza, a drug used to treat a rare neurological disorder called spinal muscular atrophy, recorded $341.3 million in sales. It got here in below analysts’ estimates of $415.1 million in revenue, based on FactSet.

Biogen said delivery times for Spinraza and increased competition impacted first-quarter revenue comparisons outside the U.S.

The company’s biosimilar drugs booked $196.9 million in sales, up barely from the $192.4 million reported through the year-ago period. Analysts had expected sales of $192.5 million from these drugs.