Biogen surpasses expectations, raises forecast due to the growing popularity of Leqembi and other new products.

• Biogen's second-quarter earnings and revenue surpassed expectations, prompting the company to raise its full-year guidance as its cost-cutting efforts demonstrated progress and sales of its innovative Alzheimer's drug, Leqembi, and other new products exceeded expectations.
• The biotech company is counting on Leqembi and other new products to fuel growth while cutting costs and facing a decline in demand for its multiple sclerosis treatments.
• Sales for Leqembi have increased to about $40 million in the quarter.

The company reported second-quarter earnings and revenue that exceeded estimates and raised its full-year guidance, as its cost cuts made progress and sales of its new products, including Leqembi, surpassed expectations.

Biogen has revised its full-year adjusted earnings forecast to be between $15.75 and $16.25 per share, an increase from its previous projection of $15 to $16 per share.

Biogen anticipates a low-single-digit percentage decline in sales for 2024, compared to its previous outlook of a low- to mid-single-digit percentage decrease from the previous year.

The second drug to slow the progression of Alzheimer's in the U.S. last summer, leqembi, was shared by Biogen with Eisai. However, the therapy's launch has been slow due to various issues, including diagnostic test requirements and regular brain scans.

Sales for Leqembi in the quarter were estimated to be $31 million by analysts, but actual sales came in at around $40 million, indicating a positive trend.

Last year, the drug generated $10 million in sales after its introduction.

The drug regulator in Europe has recommended against approving Leqembi due to its risk of brain swelling and bleeding. The companies will seek a reexamination of the decision.

Biogen anticipates that Leqembi and other new products will boost growth as it cuts costs and faces declining demand for its multiple sclerosis treatments, some of which are being challenged by cheaper generics. The company expects to achieve approximately $1 billion in gross cost savings by the end of 2025, as stated in its February annual report.

Based on a survey of analysts by LSEG, Biogen's second-quarter performance exceeded Wall Street's expectations.

• Earnings per share: $5.28 adjusted vs. $4.03 expected
• Revenue: $2.47 billion vs. $2.38 billion expected

In the current quarter, Biogen recorded sales of approximately $2.47 billion, which is nearly the same as the previous year.

In the second quarter, the drugmaker reported net income of $583.6 million, which amounts to $4 per share. This is lower than the net income of $591.6 million, or $4.07 per share, recorded in the same period last year.

The company reported earnings of $5.28 per share, adjusted for one-time items.

Apart from Leqembi, investors are closely monitoring other newly launched drugs such as Skyclarys, which was acquired by Biogen from Reata Pharmaceuticals in July.

The drug exceeded analysts' expectations by $7.7 million in sales for the second quarter.

The Food and Drug Administration approved Skyclarys as the first treatment for Friedreich's ataxia, a rare inherited degenerative disease that can affect walking and coordination in children as young as 5.

The first pill for postpartum depression, Zurzuvae, exceeded analysts' expectations with second-quarter sales of $14.9 million, compared to the predicted $11 million.

Biogen shares that pill with Sage Therapeutics

The sales of Biogen's multiple sclerosis treatments decreased by 5% to $1.15 billion in the second quarter due to competition from cheaper generics.

Still, some of those drugs posted higher-than-expected sales.

In the second quarter, Tecfidera generated $252.2 million in revenue, which is only slightly higher than the previous year. Analysts had predicted that the drug would bring in $233.3 million in revenue for the quarter, based on StreetAccount's data.