Biogen quarterly results top estimates despite complex launch of new Alzheimer's treatment

By Eleanor Laise

Company focuses on new products in Alzheimer's, postpartum depression as multiple sclerosis product revenues decline

Biogen Inc. (BIIB) on Wednesday reported third quarter results that topped analyst estimates, even as it navigates a complex launch of its new Alzheimer's treatment Leqembi.

The biotech company reported a net loss of $68.1 million, or 47 cents per share, after net income of $1.13 billion, or $7.84 per share, in the year-earlier period. Adjusted earnings per share came to $4.36, down 9% from a year earlier but ahead of the FactSet consensus of $3.97 per share. Total revenue came to $2.53 billion, versus $2.508 billion a year earlier, beating the FactSet consensus of $2.4 billion.

The company boosted its full-year sales outlook, saying it now expects a low-single digit percentage decline in revenue versus the full year 2022, whereas it previously projected a mid-single digit percentage decline. But Biogen reined in its full-year guidance for adjusted earnings per share to a range of $14.50 to $15.00, down from $15.00 to $16.00 previously, reflecting about 75 cents of dilution from its recently closed acquisition of Reata Pharmaceuticals.

Biogen has been focusing on new products in Alzheimer's, postpartum depression and other conditions amid declining sales of some older multiple sclerosis treatments. The company last quarter said it would eliminate about 1,000 jobs as part of a broader cost-cutting plan designed to save about $1 billion.

Leqembi, which is jointly developed and commercialized by Biogen and Eisai Co. Ltd. (ESALF), has faced a slow launch since its July approval by the U.S. Food and Drug Administration. "We're seeing all the green shoots of growth, but it is complex," Biogen CEO Chris Viehbacher said on a call with reporters Wednesday morning. The treatment relies in part on care networks that "did not exist until we launched this product," he said. Biogen reported $44 million in third-quarter research and development spending related to its portion of expenses for the Leqembi collaboration.

Biogen and Eisai late last month released new data on an experimental subcutaneous formulation of Leqembi, which could be more convenient and easier to administer than the currently approved biweekly intravenous version. Compared with intravenous Leqembi, the subcutaneous version resulted in greater removal of amyloid plaque, a hallmark of Alzheimer's disease, the companies said. A subcutaneous version "could meaningfully expand patient access to Leqembi," Oppenheimer analysts wrote in a note Monday. Eisai, which takes the lead on regulatory matters for the drug, said it plans to apply for U.S. regulatory approval of subcutaneous Leqembi by the end of March 2024.

Biogen's multiple sclerosis product revenues totaled $1.159 billion in the third quarter, down 14% from a year earlier. Blockbuster multiple sclerosis drug Tecfidera, which has faced increasing generic competition, had sales of $239.5 million, versus $339 million a year earlier.

Biogen in the third quarter also got FDA approval for Zurzuvae, a treatment for postpartum depression. The drug should be commercially available by the end of this year, the company said.

Biogen recently closed its acquisition of Reata Pharmaceuticals, a deal that expands its portfolio of rare-disese treatments. "We'll continue to invest in looking at business development and further growth," Viehbacher said on the call with reporters Wednesday.

Biogen shares are down 11.3% in the year to date, while the S&P 500 SPX has gained 14%.

-Eleanor Laise

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11-08-23 0710ET

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