Biogen lifts outlook as Leqembi sales accelerate in Q2
01 Aug 2024
Biogen reported better-than-expected second-quarter results on Thursday, with its Alzheimer's drug Leqembi showing signs of accelerating adoption. However, company shares were down about 2.3% amid concerns that the uptick may not be sustainable.
The anti-amyloid antibody, co-developed with Eisai, generated approximately $40 million in global in-market sales for the quarter, surpassing analyst expectations of between $30 million and $35 million, and suggesting the drug is gaining traction after a sluggish debut impacted by diagnostic requirements and regular brain scans.
Relying on international sales
However, some analysts remain cautious about Leqembi's long-term prospects. Brian Abrahams of RBC Capital Markets pointed out that the drug's quarterly beat stemmed from $10 million in sales outside the US, and that given an EU regulatory panel just recommended against Leqembi, international sales are likely to be lower long term.
Still, the biotech's overall quarterly performance, bolstered by sales across its new product portfolio, prompted a boost in its full-year guidance.
"All of the launches are in line with or ahead of expectations," stated Biogen CEO Chris Viehbacher. "We saw continued positive momentum across new product launches and are pleased with the trends we see with key products going into the third quarter."
New products driving growth
The rare disease franchise brought in $534.1 million, with Skyclarys accounting for $100 million of that and exceeding analyst projections of $92.3 million. The Friedreich ataxia treatment came from Biogen's acquisition of Reata Pharmaceuticals last year. Zurzuvae, a medicine for postpartum depression partnered with Sage Therapeutics, earned $14.9 million, surpassing expectations of $11 million.
The spinal muscular atrophy drug Spinraza outperformed as well, with sales of $429.1 million against analyst estimates ranging from $407 million to $412 million. However, the company's new ALS treatment Qalsody fell short with $5 million in sales, below forecasts of $6 million to $7 million.
Biogen's multiple sclerosis franchise continued its expected decline, with sales falling 5% to $1.15 billion. Despite this, some MS drugs, posted higher-than-anticipated sales, including Tecfidera, which brought in $252.2 million during the quarter.
Forecast raised
Biogen raised its full-year adjusted earnings guidance to $15.75 to $16.25 per share, up from the previous forecast of $15 to $16 per share. The company also revised its 2024 sales outlook, now expecting a low-single-digit percentage decline, an improvement from the previous projection of a low- to mid-single-digit percentage decrease.
Meanwhile, Biogen said it remains on track with its cost-cutting initiatives, aiming to achieve approximately $1 billion in gross cost savings, or $800 million in net savings, by the end of 2025. "While you can see a significant decline in our operating expenses, we have at the same time, been able to invest massively in our new product launches and in those R&D projects that we think are the most important," Viehbacher said.
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