Biogen Q3 Financials: Stable Revenues, Regulatory Success with Leqembi and Zurzuvae Amid Earnings Dip

November 8, 2023

Biogen has updated its financial outlook, indicating mixed results in its recent quarterly report. The company experienced stable revenues of $2.5 billion in Q3 but faced a loss in earnings per share (EPS), posting a $0.47 loss compared to a $7.84 profit in the previous year. This downturn is partly attributed to significant declines in its multiple sclerosis product line, leading to a slide in total product revenue to $1.8 billion.

The revised full-year forecast predicts a low-single-digit percentage decline in total revenue, an improvement from the previously expected mid-single-digit percentage decline. However, the EPS forecast has been reduced from $14.50 to $15, partly due to the financial impact of Biogen’s $7.3 billion acquisition of Reata Pharmaceuticals.

Despite these financial challenges, Biogen has celebrated substantial regulatory successes with the FDA approvals of two drugs: Leqembi for Alzheimer’s and Zurzuvae for postpartum depression. The company has high hopes for Leqembi’s market potential in treating Alzheimer’s disease, as underscored by its partner Eisai’s sales projection of $66.5 million for the current fiscal year.

Biogen’s third-quarter costs included $82 million spent on SG&A expenses related to the Leqembi collaboration. Furthermore, Biogen has set a price of $15,900 for a two-week treatment course of Zurzuvae, developed in partnership with Sage Therapeutics.

On the operational front, following the finalization of the Reata acquisition and a significant workforce reduction, Biogen is pushing ahead with its “Fit for Growth” strategy, which aims to cut 1,000 jobs to generate $700 million in net operating savings by 2025.

CEO Christopher Viehbacher expressed confidence in the company’s strategic positioning for sustained long-term growth, emphasizing their focus on Alzheimer’s disease treatment and their tau-directed ASO development potential.

In parallel to its earnings announcement, Biogen appointed Monish Patolawala, president and CFO of 3M, to its board of directors, effective January 1, 2024.

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[Source: MM+M, November 8th, 2023]

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