Biogen Exceeds Expectations for Leqembi, Signs Molecular Glue Deal

Biogen recently shared impressive third-quarter sales figures for its Alzheimer’s drug Leqembi, following a significant $1.45 billion agreement with Neomorph to innovate in the molecular glue degraders field.

In the third quarter, Biogen surpassed revenue expectations, particularly with its Alzheimer’s treatment, Leqembi, which is gradually gaining momentum after a slow start. The biotechnology company, headquartered in Cambridge, Massachusetts, reported revenues of $2.5 billion for the quarter. This success has led Biogen to revise its annual earnings per share (EPS) guidance upwards to a range of $16.10 to $16.60, from the previous forecast of $15.75 to $16.25.

Despite reaching a peak of $237 per share in mid-2024, Biogen’s stock has seen a decline, with shares falling to $180 in premarket trading on Wednesday. This represents a slight drop of over 1%.

Sales of Biogen’s multiple sclerosis (MS) medications saw a downturn compared to the third quarter of 2023. Tecfidera’s sales decreased to $232.8 million from $239.5 million, and Tysabri’s sales fell to $406.1 million from $456.3 million. During the fourth-quarter earnings call, CEO Chris Viehbacher highlighted the company’s strategic shift away from its traditional MS franchise. This move is one of five primary goals aimed at driving the company’s growth.

Looking ahead to 2024, Biogen anticipates a slight decline in total sales compared to the previous year. However, the company expects that new product launches will help mitigate the reduction in revenue from its MS products. A key product in this strategy is Leqembi, which received full FDA approval in July 2023. Although it initially faced challenges in the market due to delays in setting up intravenous infusion infrastructure, diagnostic requirements, and regular brain scans, Leqembi’s sales have been rising in recent quarters. The drug generated $67 million in third-quarter sales, exceeding Wall Street’s forecast of $50 million.

In another development within the neurological field, Biogen and its partner Sage disclosed they would not continue developing the recently approved postpartum depression (PPD) drug, Zurzuvae, for major depressive disorder (MDD). This decision was shared in Sage’s third-quarter earnings report. Although Zurzuvae was approved in August 2023 as the first oral medication for PPD, the companies had aimed to extend its use to the broader MDD market.

Biogen has also ventured into the molecular glue sector, forming a research collaboration with Neomorph. This partnership, valued at up to $1.45 billion, aims to discover and develop molecular glue degrader candidates for treating Alzheimer’s, rare neurological disorders, and immunological diseases. According to a press release, this collaboration combines Neomorph’s advanced molecular glue discovery platform with Biogen’s extensive expertise in these therapeutic areas.

This agreement follows another significant deal in the molecular glue domain made earlier in the week. Novartis announced an arrangement with Monte Rosa Therapeutics, agreeing to an upfront payment of $150 million for the rights to Monte Rosa’s VAV1-targeting molecular glue degraders. Under this agreement, Monte Rosa could earn up to $2.1 billion in development, regulatory, and sales milestones.