Biogen has raised its annual profit forecast, driven by a combination of cost-cutting measures and promising sales from its newer treatments. The company’s third-quarter profits surpassed market expectations, and its shares rose by about 1% to $185.20 in premarket trading. This financial upswing reflects the impact of CEO Christopher Viehbacher’s strategic initiatives to cut costs and focus on high-potential products, as the company seeks to stabilize in a competitive biotech market.
In recent months, Biogen has implemented significant cost-cutting measures, including job cuts and a reduction in less promising drug candidates, redirecting resources toward potentially profitable treatments. Among these new treatments is Leqembi, an Alzheimer's drug that has seen gradual sales growth in the U.S. despite concerns over cost, efficacy, and potential side effects. While Leqembi’s reception has been mixed, it brought in $67 million globally in the third quarter, exceeding Wall Street expectations of $56 million. U.S. sales of Leqembi alone accounted for $39 million.
However, Biogen has faced challenges in international markets. The drug’s cost has made it unaffordable for the UK's state-run health service, and the European Union regulator is set to finalize its reexamination of Leqembi’s initial rejection by the end of the year. Nevertheless, the company remains hopeful about Leqembi's future as an anchor in its portfolio of innovative treatments.
Biogen's multiple sclerosis drugs, including Tecfidera, continue to be a key revenue stream but reported a 9% decline in quarterly sales, reaching $1.05 billion. Competition also weighed on the spinal muscular atrophy drug Spinraza, which recorded $381.4 million in sales, below analysts’ expectations of $430.5 million, as rival drugs from companies like Roche and Novartis gain traction in the market.
Meanwhile, Biogen’s new rare-disease drug Skyclarys generated $102.3 million, falling slightly short of expectations, which had forecasted sales of $108.5 million. Another recent addition, Qalsody, an amyotrophic lateral sclerosis drug, performed well and surpassed analysts’ estimates, underscoring the potential of Biogen’s newer treatments in contributing to its bottom line.
Looking ahead, Biogen has adjusted its annual profit expectations upward, now projecting an adjusted profit of between $16.10 and $16.60 per share, an increase from the previous forecast range of $15.75 to $16.25. This revised outlook reflects a strong performance in the latest quarter, where the company posted an adjusted profit of $4.08 per share, outperforming Wall Street’s anticipated $3.79 per share.
Biogen’s emphasis on operational efficiency and a focused drug pipeline under Viehbacher’s leadership has allowed the company to navigate sales declines in established medications and invest in growth opportunities. As Biogen continues to refine its strategy and roll out promising treatments, its financial forecast signals optimism for future profitability, positioning the company for further growth amid industry challenges.
(Source:www.usnews.com)
In recent months, Biogen has implemented significant cost-cutting measures, including job cuts and a reduction in less promising drug candidates, redirecting resources toward potentially profitable treatments. Among these new treatments is Leqembi, an Alzheimer's drug that has seen gradual sales growth in the U.S. despite concerns over cost, efficacy, and potential side effects. While Leqembi’s reception has been mixed, it brought in $67 million globally in the third quarter, exceeding Wall Street expectations of $56 million. U.S. sales of Leqembi alone accounted for $39 million.
However, Biogen has faced challenges in international markets. The drug’s cost has made it unaffordable for the UK's state-run health service, and the European Union regulator is set to finalize its reexamination of Leqembi’s initial rejection by the end of the year. Nevertheless, the company remains hopeful about Leqembi's future as an anchor in its portfolio of innovative treatments.
Biogen's multiple sclerosis drugs, including Tecfidera, continue to be a key revenue stream but reported a 9% decline in quarterly sales, reaching $1.05 billion. Competition also weighed on the spinal muscular atrophy drug Spinraza, which recorded $381.4 million in sales, below analysts’ expectations of $430.5 million, as rival drugs from companies like Roche and Novartis gain traction in the market.
Meanwhile, Biogen’s new rare-disease drug Skyclarys generated $102.3 million, falling slightly short of expectations, which had forecasted sales of $108.5 million. Another recent addition, Qalsody, an amyotrophic lateral sclerosis drug, performed well and surpassed analysts’ estimates, underscoring the potential of Biogen’s newer treatments in contributing to its bottom line.
Looking ahead, Biogen has adjusted its annual profit expectations upward, now projecting an adjusted profit of between $16.10 and $16.60 per share, an increase from the previous forecast range of $15.75 to $16.25. This revised outlook reflects a strong performance in the latest quarter, where the company posted an adjusted profit of $4.08 per share, outperforming Wall Street’s anticipated $3.79 per share.
Biogen’s emphasis on operational efficiency and a focused drug pipeline under Viehbacher’s leadership has allowed the company to navigate sales declines in established medications and invest in growth opportunities. As Biogen continues to refine its strategy and roll out promising treatments, its financial forecast signals optimism for future profitability, positioning the company for further growth amid industry challenges.
(Source:www.usnews.com)
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