Two embattled healthcare companies, Abbott and Biogen, released earnings reports Wednesday morning.
For Abbott, both worldwide sales (excluding COVID-19 testing-related sales) as well as nutrition and pediatric nutrition sales declined. It was due in part due to the voluntary recall of infant formula and the shutdown of a manufacturing facility in February.
The Food and Drug Administration is investigating the report of a baby’s death after consuming infant formula produced at an Abbott facility in Sturgis, Michigan. Abbott resumed production of infant formula at the Michigan plant earlier this month.
The sales of certain infant formula products in Q2 2022 totaled $116 million, down from $280 million in Q2 2021.
Despite the infant formula controversy, Abbott continued to benefit from COVID-19 testing-related sales, which generated $2.3 billion in Q2. Overall sales grew by 10.1% and diagnostics sales grew by 33%.
To that end, Abbott announced that it is raising its full-year earnings per share guidance to at least $3.50.
“We achieved another quarter of strong growth and are raising our full-year EPS guidance,” said Abbott CEO Robert Ford in a statement. “Our new product pipeline has remained highly productive, and our diversified business has continued to be resilient in a challenging macro environment.”
Following the decision to eliminate the commercial infrastructure for Aduhelm, its troubled Alzheimer’s drug, Biogen recorded a $71 million restructuring expense. The company also recorded a $29 million GAAP and Non-GAAP SG&A expense related to the drug’s commercialization.
Among other key financial metrics, Biogen reported that total revenue decreased 7%, multiple sclerosis revenue decreased 4%, Spinraza revenue decreased 14% and biosimilars revenue decreased 4%.
Looking ahead, Biogen raised its total revenue guidance for the full-year to a range between $9.9 billion and $10.1 billion. The company attributed this guidance revision to “better-than-expected topline performance and continued cost management.”
Another major development for Biogen during the quarter was the announcement in May that CEO Michel Vounatsos would step down amid setbacks with the rollout of Aduhelm. The company did not provide an update on its leadership search.
“We continued to execute on our near-term operational priorities in the second quarter and are pleased to be raising our financial guidance for the year. At the same time, we continue to face revenue declines due in part to generic and biosimilar competition for Tecfidera and Rituxan,” Vounatsos said in a statement. “We made important progress towards bringing new potential treatments to patients suffering from Alzheimer’s disease and depression, which we believe are critical steps on our path to drive value creation for both patients and shareholders over time.”