Biogen raised its year-end revenue guidance while slashing its earnings outlook Wednesday morning.
The Cambridge, Massachusetts-based biotech recorded $2.5 billion in revenue during Q3, which was flat year-over-year.
The company posted an earnings per share (EPS) loss of $0.47, down from an EPS of $7.84 this time last year. Total product revenue slid to $1.8 billion, due in part to double-digit declines in its multiple sclerosis product line.
For the full-year, Biogen now expects a low-single digit percentage decline in total revenue, which was updated from a previous guidance of a mid-single digit percentage decline.
The company also forecast an EPS of in the range of $14.50 to $15, reflecting a $0.75 dilution from the $7.3 billion buyout of Reata Pharmaceuticals.
While Biogen had a mixed financial performance during the quarter, it enjoyed significant regulatory approvals.
The watershed approval for Leqembi came six months after the FDA gave the drug a greenlight through its accelerated pathway program.
Looking ahead, Biogen is optimistic about Leqembi’s prospects in the Alzheimer’s disease space.
Earlier this week, Biogen’s partner Eisai said that it is projecting $66.5 million in sales of Leqembi for the current fiscal year through March.
Still, as it relates to costs recorded during Q3, Biogen’s SG&A included $82 million related to the company’s portion of SG&A expense related to the Leqembi collaboration.
As for Zurzuvae, Biogen and its partner Sage Therapeutics priced the two-week treatment course at $15,900 just a few days ago.
When it comes to dealmaking, the company closed its Reata deal at the end of the quarter, just days before cutting almost one-third of its staff.
To that end, Biogen has continued on its own Fit for Growth strategy with plans to cut 1,000 jobs as part of an effort to create $700 million in net operating savings by 2025.
Biogen CEO Christopher Viehbacher said in a press release accompanying the earnings that he believes the company has the key elements in place to position itself for long-term sustainable growth and has made significant progress on the business priorities.
“As we look ahead, the focus remains on execution. We aim to further our leadership in Alzheimer’s disease by both driving the Leqembi launch and advancing development of our tau-directed ASO, where we have the potential to establish another foothold in the fight against Alzheimer’s disease,” he stated. “In addition to potential revenue and EPS growth from new launches, Fit for Growth is expected to significantly strengthen our bottom line growth.”
In addition to its earnings release, Biogen also appointed 3M president and CFO Monish Patolawala to its board of directors this week. Patolawala joins the board effective January 1, 2024.
For a January 2024 article about Biogen dropping Aduhelm efforts in favor of Leqembi, click here.