In this illustration taken on December 1, 2021, a test tube can be seen in front of the displayed Biogen logo.
Dado Ruvik | Reuters
biogen on wednesday report First-quarter profit exceeded expectations as the company’s cost-cutting efforts took hold and sales of Rekenbi, a drug that had been attracting attention, exceeded expectations.
with biogen EisaiRequembi was found to slow the progression of Alzheimer’s disease and became the first drug to win approval in the United States in July. The therapy’s launch was slow, but adoption appears to have accelerated in the first quarter.
Rekenbi brought in about $19 million in sales in the quarter, surpassing the drug’s $10 million in sales last year. That was higher than the $11 million that analysts had expected, according to estimates compiled by FactSet.
According to Biogen, the number of patients receiving this treatment has increased about 2.5 times since the end of 2023. The company added that the number of new patients starting Rekenbi treatment surged in March, accounting for more than 20% of the cumulative number of patients currently receiving treatment.
Biogen did not disclose the specific number of patients using Leqembi. In February, Biogen CEO Chris Viebacher told reporters that about 2,000 patients were currently taking Rekenbi.
The company hopes the drug and other newly launched products will spur growth as sales of multiple sclerosis drugs plummet due to cost cuts, some of which face competition from generic drugs. ing.
Here’s a look at what Biogen reported in the first quarter compared to Wall Street’s expectations, based on a survey of analysts by LSEG.
- Earnings per share: $3.67 adjusted, $3.45 expected
- Revenue: $2.29 billion vs. $2.31 billion expected
The biotechnology company had revenue of $2.29 billion in the quarter, down 7% from the year-ago period. The company reported first-quarter net income of $393.4 million, or $2.70 per share, up from 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 forecast of $15 to $16 per share. Analysts surveyed by LSEG expected full-year earnings of $15.49 per share.
The company also reiterated that its sales forecast for 2024 is a low to mid-single-digit decline compared to the previous year.
Newly released drugs have the highest predicted value
Apart from Rekenbi, investors are also keeping an eye on other newly launched drugs.
That includes Sky Claris, which was acquired by Biogen in July when it acquired Reata Pharmaceuticals. The drug’s first quarter revenue was $78 million.
Analysts had expected revenue of $68.8 million, according to FactSet estimates.
The Food and Drug Administration approved Skyclaris last year, making it the first approved treatment for Friedreich’s ataxia. Friedreich’s ataxia is a rare genetic degenerative disease that can cause problems with walking and coordination in children as young as 5 years old. In February, European Union regulators approved Skyclaris as a treatment for the disease. Friedreich ataxia in patients over 16 years of age.
Biogen also partnered with Sage Therapeutics on its first pill for postpartum depression, which won FDA approval in August. But the agency refused to approve a drug to treat major depressive disorder, a much larger market.
Biogen said the pill, called Zurzuvae, had sales of $12 million in the first quarter. Analysts had expected sales for the drug to be just $5 million, according to FactSet.
Drugs and other treatments for multiple sclerosis
Meanwhile, first-quarter sales of Biogen’s multiple sclerosis products fell 4% to $1.08 billion as some treatments face competition from cheaper generic drugs. Ta.
The company’s once blockbuster drug Tecfidera, which faces competition from generic rivals, posted first-quarter sales of $254.3 million, down from $274.5 million a year earlier.
Still, the amount exceeded analysts’ expectations of $227.7 million, according to FactSet.
Vumerity, an oral drug for relapsing multiple sclerosis, generated sales of $127.5 million. That was lower than the $137.9 million expected by analysts, according to FactSet estimates.
Biogen’s rare disease drug sales were $423.9 million, down from $443.3 million in the same period last year.
Spinraza, a drug used to treat a rare neuromuscular disorder called spinal muscular atrophy, had sales of $341.3 million. That was below analysts’ expectations for revenue of $415.1 million, according to FactSet.
Biogen said Spinraza’s shipping timing and increased competition impacted first-quarter revenue comparisons outside the U.S.
The company’s biosimilar drug sales were $196.9 million, up slightly from $192.4 million in the same period last year. Analysts had expected sales of these drugs to be $192.5 million.
Correction: Skyclarys’ first quarter revenue was $78 million. Previous versions incorrectly listed quarters.