Biogen reported strong first-quarter profits, surpassing estimates due to increased sales of its Alzheimer’s drug, Leqembi. The drug, developed in partnership with Eisai, was approved in the U.S. last year as the first treatment found to slow the progression of Alzheimer’s disease. Sales of Leqembi reached $19 million in the first quarter, exceeding analyst expectations of $11 million. The number of patients on the therapy nearly tripled since the end of 2023, with more than 20% of cumulative patients starting treatment in March. Although Biogen did not provide a specific number of patients, their CEO previously mentioned around 2,000 patients on Leqembi.
Despite a 7% decline in revenue from the previous year, Biogen reported net income of $393.4 million or $2.70 per share for the first quarter, compared to $387.9 million or $2.67 per share a year ago. Adjusting for one-time items, the company reported earnings of $3.67 per share. Biogen reiterated its full-year 2024 adjusted earnings forecast of $15 to $16 per share, slightly surpassing analyst expectations of $15.49. The company also maintained its sales guidance for 2024, expecting a low- to mid-single digit percentage decline compared to the previous year. Cost-cutting efforts are being implemented to offset declining sales of multiple sclerosis therapies facing generic competition.
In addition to Leqembi, other newly launched drugs like Skyclarys, acquired through the purchase of Reata Pharmaceuticals, are garnering attention. Skyclarys, the first approved treatment for Friedreich ataxia, generated $78 million in revenue in the fourth quarter, surpassing analyst expectations of $68.8 million. The FDA cleared Skyclarys last year, while European regulators approved it for older patients in February. Biogen’s partnership with Sage Therapeutics also resulted in the first pill for postpartum depression, Zurzuvae, which generated $12 million in first-quarter sales. The drug was not cleared for major depressive disorder, which is a larger market, but still exceeded analyst expectations of $5 million in sales.
The success of newly launched drugs like Leqembi, Skyclarys, and Zurzuvae is crucial for Biogen’s growth strategy as it navigates cost-cutting measures and declining sales of established therapies. The strong performance of these drugs in the first quarter exceeded analyst predictions, providing optimism for the company’s future prospects. Biogen’s continued focus on innovation and strategic partnerships, such as those with Eisai and Sage Therapeutics, positions it well in the competitive biotech industry. The company’s commitment to developing treatments for rare diseases and unmet medical needs demonstrates its dedication to improving patient outcomes and driving revenue growth.
Moving forward, Biogen aims to leverage the success of its newly launched drugs to offset challenges in its multiple sclerosis portfolio and drive overall revenue growth. The company’s positive first-quarter results and reaffirmed guidance for 2024 indicate a solid foundation for future performance. By continuing to invest in research and development, strategic partnerships, and cost-effective measures, Biogen is well-positioned to capitalize on emerging opportunities in the healthcare market. Investors will be closely monitoring the company’s progress in scaling up sales of Leqembi and other innovative therapies to sustain long-term profitability and shareholder value.
