Biogen surpasses expectations, increases profit projections due to the growing popularity of its Alzheimer's medication, Leqembi.

• Biogen reported third-quarter revenue and adjusted earnings that topped expectations.
• The company also raised its full-year profit guidance.
• Despite a decline in revenue from its multiple sclerosis products, the company's sales of Leqembi and new treatments for rare diseases and depression offset the decline.

On Wednesday, the company reported third-quarter revenue and adjusted earnings that exceeded expectations, and also raised its full-year profit guidance as sales of its new products, including the breakthrough Alzheimer's drug Leqembi, gained traction.

Biogen has revised its full-year adjusted earnings forecast to be between $16.10 and $16.60 per share, an increase from its previous forecast of $15.75 to $16.25 per share. Despite this, the biotech company still anticipates a low-single-digit percentage decline in sales for 2024.

The second drug to slow the progression of Alzheimer's in the U.S. last summer, Leqembi, has faced a slow launch due to various issues such as diagnostic test requirements, regular brain scans, and finding neurologists.

Sales of Leqembi have been steadily increasing in recent quarters, with the third quarter generating $67 million in revenue, including $39 million from the U.S.

According to StreetAccount's estimates, global sales of Leqembi were predicted to be $50 million by Wall Street analysts. However, the drug only generated $10 million in sales last year after its launch.

Biogen's multiple sclerosis products experienced a decline in revenue, but this was partially offset by the success of Leqembi and other rare disease and depression treatments.

Based on a survey of analysts by LSEG, Biogen's third-quarter results differed from Wall Street's expectations.

• Earnings per share: $4.08 adjusted vs. $3.79 expected
• Revenue: $2.47 billion vs. $2.43 billion expected

Biogen's quarterly sales decreased by approximately 3% compared to the previous year, totaling $2.47 billion.

The drugmaker's net income for the September 30 period was $388.5 million, or $2.66 per share, which is a significant improvement from the net loss of $68.1 million, or 47 cents per share, recorded in the same period the previous year.

The company reported earnings of $4.08 per share, after adjusting for one-time items and certain restructuring charges and costs associated with intangible assets.