In this image from December 1, 2021, a test tube can be seen in front of the Biogen logo.
Given Ruvic | Reuters
Biogenic reported first-quarter profit on Wednesday that beat estimates as the company's cost-cutting efforts took effect and sales of its closely watched Alzheimer's drug Leqembi came in higher than expected.
Biogenic and EisaiLeqembi was approved in the US in July as the first drug proven to slow the progression of Alzheimer's disease. The treatment's rollout was slow, but adoption appeared to accelerate in the first quarter.
Leqembi generated sales of about $19 million in the quarter, compared to the $10 million the drug generated last year. That's above the $11 million analysts had expected, according to FactSet estimates.
Biogen says the number of patients receiving the therapy has increased nearly 2.5-fold since the end of 2023. The company added that the number of new patients starting Leqembi surged in March, accounting for more than 20% of the total patients now receiving the treatment.
Biogen did not provide information on a specific number of patients who used Leqembi. In February, Biogen CEO Chris Viehbacher told reporters that about 2,000 patients are currently taking Leqembi.
The company hopes the drug and other newly launched products will drive growth as it cuts costs and sees declining sales of its multiple sclerosis therapies, some of which face generic competition.
Here's what Biogen reported for the first quarter compared to Wall Street's expectations, based on an analyst survey from LSEG:
- Earnings per share: $3.67 adjusted vs. $3.45 expected
- Revenue: $2.29 billion vs. expected $2.31 billion
The biotech company posted revenue of $2.29 billion in the quarter, down 7% from the same period last year. For the first quarter, the company reported net income of $393.4 million, or $2.70 per share, compared to net income of $387.9 million, or $2.67 per share, in the year-ago period .
Adjusted for one-time items, the company reported earnings of $3.67 per share.
Biogen reiterated its full-year 2024 adjusted earnings guidance of $15 to $16 per share. Analysts polled by LSEG had expected full-year earnings of $15.49 per share.
The company also reiterated its 2024 revenue guidance, which calls for a low- to mid-single-digit percentage decline compared to last year.
Top Estimates for Newly Launched Drugs
In addition to Leqembi, investors are also eyeing other newly launched drugs.
This includes Skyclarys, which was added through Biogen's acquisition of Reata Pharmaceuticals in July. This drug had sales of $78 million in the fourth quarter.
Analysts had expected sales of $68.8 million, according to FactSet estimates.
The Food and Drug Administration approved Skyclarys last year, making it the first approved treatment for Friedreich's ataxia, a rare inherited degenerative disorder that can affect walking and coordination in children ages 5 and older. In February, European Union regulators approved Skyclarys to treat Friedreich ataxia in patients aged 16 and over.
Biogen also worked with Sage Therapeutics on the first pill for postpartum depression, which received FDA approval in August. However, the agency declined to approve the drug for major depressive disorder, which is a much larger market.
Biogen said the pill, called Zurzuvae, generated $12 million in sales in the first quarter. According to FactSet, analysts had only expected sales of $5 million for this drug.
Multiple sclerosis medications, other treatments
Meanwhile, Biogen's first-quarter sales of multiple sclerosis products fell 4% to $1.08 billion as some of its therapies face competition from cheaper generics.
The company's one-time blockbuster drug Tecfidera, which faces competition from a generic rival, posted first-quarter sales of $254.3 million, compared with $274.5 million in the year-ago period.
However, according to FactSet, that amount was higher than analysts' estimate of $227.7 million.
Vumerity, an oral drug for relapsing forms of multiple sclerosis, had sales of $127.5 million. That was below analyst estimates of $137.9 million, according to FactSet estimates.
More CNBC Health coverage
Biogen's rare disease drugs reported sales of $423.9 million, down from $443.3 million in the same period last year.
Spinraza, a drug used to treat a rare neuromuscular disease called spinal muscular atrophy, had sales of $341.3 million. That was below analysts' estimate of $415.1 million in revenue, according to FactSet.
Biogen said the timing of Spinraza shipments and increasing competition impacted first-quarter sales comparisons outside the U.S
The company's biosimilar drugs generated sales of $196.9 million, up slightly from $192.4 million in the year-ago period. Analysts had expected sales of $192.5 million from these drugs.
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