Biogen Inc. reported strong third-quarter earnings, exceeding analyst estimates on both earnings per share and revenue. The company’s Alzheimer’s drug Leqembi saw significant sales growth, but multiple sclerosis revenue continued to decline. Biogen also raised its 2024 earnings guidance and expects revenue to be relatively flat next year.
The UK’s National Health Service (NHS) is expected to follow the National Institute for Health and Care Excellence (NICE) in rejecting Eli Lilly’s donanemab, a potential Alzheimer’s treatment, due to safety concerns, high costs, and a precedent set by the rejection of Biogen’s Leqembi. While donanemab showed promising results in slowing cognitive decline, the risks of brain bleeds and swelling, occurring at a higher rate than with Leqembi, are major concerns. The projected cost of donanemab, estimated to be 25% higher than Leqembi, adds to the concerns, with NICE already citing cost as a primary factor in its rejection of Leqembi.
The UK’s Medicines and Healthcare products Regulatory Agency has approved Leqembi, an Alzheimer’s drug developed by Eisai and Biogen, for treating early-stage Alzheimer’s disease. However, the National Institute for Health and Care Excellence (NICE) has declined to recommend the drug for use on the NHS due to its high cost and limited benefits.
Biogen Inc (BIIB) reported a mixed set of financial results for the first quarter of 2024. While adjusted EPS beat consensus, sales fell short of expectations. The company’s multiple sclerosis and rare disease revenues declined, but Leqembi sales accelerated, reaching approximately $19 million globally. Biogen maintained its guidance for the fiscal year 2024, with an expected EPS of $15.00-$16.00 and a low- to mid-single-digit percentage decline in total revenue. Analysts noted that the Leqembi launch faced headwinds, and the bottom-line beat was driven by cost-cutting initiatives.
Biogen reported a solid first quarter with its profits exceeding estimates. The company’s highly anticipated Alzheimer’s drug, Leqembi, has generated significant sales of about $19 million, surpassing the $14 million analysts had predicted. Leqembi, which is administered through intravenous infusions, has experienced a steady increase in patients, with the total number on the drug rising to nearly 2.5 times what it was at the end of 2023. The drug’s annual price tag is $26,500 per patient, and Medicare has agreed to cover the cost for those who meet specific criteria. Additionally, Biogen has implemented cost-cutting measures, including eliminating over 1,000 jobs since Viehbacher became CEO in late 2022.
Biogen’s first quarter 2024 earnings report revealed an adjusted EPS of $3.67, surpassing the consensus estimate of $3.43. Revenue, however, slightly missed expectations at $2.29 billion against the consensus estimate of $2.31 billion, reflecting a 7% decline compared to the same quarter last year. Despite the revenue shortfall, the company experienced a 10% increase in GAAP operating income and a 24% increase in adjusted operating income, driven by efficiency gains from its Fit for Growth program and research and development prioritization. The introduction of LEQEMBI, a new Alzheimer’s treatment, showed promise with global in-market sales of $19 million in the first quarter, nearly tripling since the fourth quarter of 2023. Biogen maintained its full-year 2024 financial guidance, projecting an adjusted EPS range of $15.00 to $16.00, representing approximately 5% growth at the mid-point compared to 2023. The company anticipates a low- to mid-single digit percentage decline in total revenue but expects operating income to grow by a low-double digit percentage.
Biogen reported better-than-expected first-quarter results, driven by strong sales of its Alzheimer’s drug Leqembi and cost-cutting efforts. Leqembi sales reached $19 million, exceeding analysts’ expectations of $11 million. The number of patients on the drug increased nearly 2.5 times since the end of 2023. Biogen also reported revenue of $2.29 billion, down 7% year-over-year, and net income of $393.4 million, or $2.70 per share, up from $2.67 per share a year ago.
Despite the approval of Leqembi, the first drug shown to slow Alzheimer’s disease progression, its adoption has been hindered by widespread skepticism and therapeutic nihilism among healthcare professionals. This reluctance stems from concerns about the drug’s efficacy, cost, and risks, as well as a long-held belief that Alzheimer’s is an incurable disease. However, advocates emphasize the potential benefits of Leqembi in delaying cognitive decline and providing hope to patients and families.
