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]