Biogen's stock climbs as first-quarter profit tops estimates, Alzheimer's drug uptake improves

By Eleanor Laise

New product launches progressing well, Biogen says, but total sales fall short of analyst expectations

Biogen Inc. shares (BIIB) gained 5.5% premarket on Wednesday after the company reported first-quarter profit that beat analysts' expectations amid improving traction for its new Alzheimer's disease treatment.

The Cambridge, Mass.-based biotech reported net income of $393.4 million, or $2.70 per share, up from $387.9 million, or $2.67 per share, a year earlier. First-quarter adjusted earnings per share of $3.67 topped the FactSet consensus of $3.45. Revenue in the quarter totaled $2.29 billion, down 7% from the year-earlier period and missing the FactSet consensus of $2.311 billion.

Biogen signaled accelerating uptake of its new Alzheimer's drug Leqembi, which is jointly developed and commercialized with Eisai Co. Ltd. (ESALF) and got full U.S. regulatory approval last year. First-quarter Leqembi in-market sales of about $19 million nearly tripled the fourth-quarter 2023 level, Biogen said, while the number of patients on the drug has increased nearly 2.5 times since the end of 2023. There was a significant uptick in new Leqembi patients in March, the company said, accounting for over 20% of cumulative patients now on the drug.

The company's Alzheimer's business also gained some tailwind last month after a potential competitor hit a speed bump. Eli Lilly & Co. (LLY) said in March that a regulatory decision on its experimental Alzheimer's treatment donanemab would be delayed beyond the previously expected first-quarter 2024 time frame as the Food and Drug Administration planned an advisory committee meeting to review the drug's trial results.

Despite the improved momentum for Leqembi, "we think growth needs to accelerate from here," Jefferies analysts said in a research note Wednesday.

Another new Biogen drug, the Friedreich's ataxia treatment Skyclarys, generated $78 million in total sales in the quarter, well ahead of the FactSet consensus of $69 million. Biogen acquired the drug through its 2023 acquisition of Reata Pharmaceuticals. With the U.S. launch of Skyclarys "advancing well" and the European Union launch underway, "we are beginning to realize the value of the Reata transaction," Biogen president and Chief Executive Christopher Viehbacher said in a statement.

The new products have helped offset declining revenues from Biogen's multiple sclerosis products, which include Tecfidera and Tysabri. First-quarter total multiple sclerosis product sales dropped 4% from a year earlier, to $1.076 billion. Tecfidera and Tysabri, however, both generated first-quarter sales that topped the FactSet consensus.

Biogen's total sales in the quarter fell short of analysts' estimates, mainly due to the timing of shipments for spinal muscular atrophy treatment Spinraza in some emerging markets, which is expected to normalize through the rest of the year, the company said.

The company reiterated its full-year guidance, expecting 2024 adjusted earnings per share of $15.00 to $16.00 and total revenue to decline by a low- to mid-single-digit percentage compared to 2023.

Biogen shares were down 25.4% year-to-date, while the S&P 500 has gained 6.3%.

-Eleanor Laise

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04-24-24 0808ET

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