February 13, 2024 - The Entrepreneur Times

Biogen experiences a decline in revenue and profit due to expenses related to Aduhelm and a decrease in sales for multiple sclerosis therapies

Posted on February 13, 2024September 1, 2024 by admin

Biogen reported a decline in both revenue and profit for the fourth quarter, attributing the decrease to charges associated with discontinuing its controversial Alzheimer’s drug, Aduhelm, and a slump in sales within its major drug category, multiple sclerosis therapies.

For the fourth quarter, Biogen posted sales of $2.39 billion, reflecting a 6% decrease from the same period a year ago. Net income for the quarter was $249.7 billion, or $1.71 per share, down from $550.4 billion, or $3.79 per share, in the corresponding period last year. Adjusting for one-time items, the company reported $2.95 per share.

The negative impact of 35 cents per share on fourth-quarter earnings, both adjusted and unadjusted, was attributed to previously disclosed costs associated with withdrawing Aduhelm, a drug that stirred controversy during its approval and rollout in the U.S.

In an effort to counterbalance declining revenue from multiple sclerosis therapies, Biogen is implementing cost-cutting measures and placing expectations on alternative Alzheimer’s drugs, particularly its closely monitored treatment, Leqembi, along with other recently launched products.

Here’s a summary of Biogen’s fourth-quarter performance compared to Wall Street expectations:

Earnings per share: $2.95 adjusted vs. $3.18 expected
Revenue: $2.39 billion vs. $2.47 billion expected

Biogen also provided full-year 2024 guidance, anticipating adjusted earnings between $15 to $16 per share, slightly below the analysts’ expected full-year earnings guidance of $15.65 per share.

Multiple sclerosis drug sales took an 8% hit in the fourth quarter, amounting to $1.17 billion, largely due to increased competition from more affordable generics. Tecfidera, once a blockbuster drug, experienced a 17.8% revenue decline to $244.3 million.

Biogen’s rare disease drugs, however, saw a 3% increase in sales to $471.8 million, with Spinraza, a medication for spinal muscular atrophy, recording $412.6 million in sales.

Despite a slower-than-expected adoption of Leqembi, with around 2,000 patients currently using it, Biogen remains optimistic about its long-term potential and is exploring commercial plans to expand its reach beyond the initial target of 10,000 patients by March 2024.

Investors are also keeping an eye on newly launched drugs, including Skyclarys, which generated $56 million in fourth-quarter revenue. Additionally, Biogen’s partnership with Sage Therapeutics resulted in the FDA-approved Zurzuvae for postpartum depression, contributing approximately $2 million in fourth-quarter sales.

Microsoft’s AI expansion is bolstering its cloud business, challenging Amazon’s dominance

Posted on February 13, 2024September 1, 2024 by admin

Amazon Web Services maintains its leadership in the cloud, yet Microsoft is rapidly narrowing the gap. While specific revenue figures for Microsoft’s Azure cloud infrastructure are undisclosed, analysts estimate its current size to be about three-quarters of AWS, up from half the size five years ago. Notably, Microsoft’s recent surge is attributed to artificial intelligence (AI). During the latest quarter, 30% growth in Azure revenue was reported, surpassing AWS’s 13% year-over-year growth. The strategic integration of AI, contributing 6 points to Azure’s revenue growth, has fueled Microsoft’s momentum. CEO Satya Nadella revealed on the earnings call that Azure now boasts 53,000 AI customers.

Microsoft’s investment in graphics processing units (GPUs) for AI models, including the powerful GPT-4 language model, has attracted businesses seeking advanced generative AI capabilities. This emphasis on AI has led some companies to consider Azure due to Microsoft’s perceived leadership, especially in its collaboration with OpenAI.

On the other hand, AWS, while offering a range of AI models, faced challenges catching up with GPT-4. Amazon CEO Andy Jassy acknowledged the importance of generative AI for driving substantial revenue for Amazon in the coming years.

Azure’s faster growth rate, constituting a significant portion of Microsoft’s total revenue, has contributed to the company’s rise as the world’s most valuable public company. Microsoft’s Intelligent Cloud segment, encompassing Azure, has become a major profit driver, generating 46% of the company’s total operating income. The gross margin in Microsoft’s cloud group expanded from 42% in 2016 to 72% in the latest quarter, reflecting efficiency gains in various aspects of its operations.

In summary, Microsoft’s AI-driven growth in Azure, coupled with a diverse range of high-margin services, positions it as a formidable competitor to AWS. The strategic focus on AI and the impressive financial performance make Microsoft’s cloud business a compelling read for those interested in the evolving dynamics of the cloud computing industry.

Coca-Cola exceeded sales expectations, boosted by increased pricing

Posted on February 13, 2024September 1, 2024 by admin

On Tuesday, Coca-Cola reported quarterly earnings in line with expectations, surpassing sales estimates due to higher prices that helped the beverage company offset a decline in volume in North America.

Key details compared to Wall Street expectations, based on an LSEG analyst survey (formerly Refinitiv):

Adjusted earnings per share: 49 cents (actual) vs. 49 cents (expected)
Revenue: $10.85 billion (actual) vs. $10.68 billion (expected)

The company’s shares experienced a slight premarket trading increase of less than 1%.

Coca-Cola disclosed fourth-quarter net income of $1.97 billion, or 46 cents per share, a decrease from the previous year’s $2.03 billion, or 47 cents per share. Excluding certain items, the adjusted earnings per share were 49 cents.

Net sales saw a 7% rise to $10.85 billion, with organic revenue (excluding acquisitions and divestitures) increasing by 12% during the quarter.

While the overall unit case volume grew by 2% for the quarter, North American volume contracted by 1%, attributed to decreased demand for water, sports drinks, coffee, and tea.

For the fiscal year 2024, Coca-Cola anticipates organic revenue growth of 6% to 7% and a comparable earnings per share increase of 4% to 5%. The company expects adverse effects from foreign exchange rates on both earnings and revenue throughout the year.

In the first quarter, Coca-Cola foresees a 4% negative impact on comparable revenue due to currency exchange rates. Additionally, the company expects foreign exchange to impede its earnings per share growth, projecting an 8% impact from currency changes during the period.

The Russian economy is anticipated to face significant challenges despite a more positive growth outlook, according to the Managing Director of the International Monetary Fund (IMF)

Posted on February 13, 2024September 1, 2024 by admin

In Dubai, the Chief of the International Monetary Fund cautioned that despite an upgraded growth projection by the organization, the Russian economy continues to grapple with substantial challenges. Over the nearly two years since initiating a full-scale invasion of Ukraine, Russia has displayed unexpected resilience amid Western sanctions. Although the IMF raised its economic growth forecast for the country from 1.1% in October to 2.6% in late January, Managing Director Kristalina Georgieva anticipates ongoing difficulties for the nation with a population of approximately 145 million.

During an interview with CNBC’s Dan Murphy at the World Governments Summit in Dubai, Georgieva explained the dynamics behind Russia’s growth and emphasized that the forecasted figure doesn’t capture the entire narrative. She noted that Russia’s current state resembles a war economy, where the state, having maintained a substantial fiscal buffer through years of discipline, is directing investments into the war effort. Georgieva pointed out a pattern in which military production increases while civilian consumption decreases, drawing parallels to the former Soviet Union’s economic model characterized by high production levels and low consumption rates.

Since the commencement of the war, Russian defense spending has surged significantly. In November of the previous year, President Vladimir Putin approved a state budget that raised military expenditures to around 30% of fiscal outlay, marking an almost 70% increase from 2023 to 2024. Analysis by Reuters indicates that defense and security spending is projected to constitute approximately 40% of Russia’s total budget spending in the current year.

The U.S. Senate has given its approval for aid to Ukraine and Israel, but the bill encounters a challenging journey through the House.

Posted on February 13, 2024September 1, 2024 by admin

The U.S. Senate voted early Tuesday to approve a $95 billion aid package providing funds for Ukraine, Israel and Taiwan, but its future remains uncertain amid intense lawmaker opposition.

The package includes $61 billion for Ukraine, $14 billion for Israel and $4.83 billion to support partners in the Indo-Pacific, including Taiwan, along with facilities for humanitarian aid.

The bill passed by 70-29 votes in the Democrat-led legislature on Tuesday, with Sen. Cynthia Lummis (R-Wyo.) abstaining.

Only two Democratic senators voted against the measures, alongside independent Sen. Bernie Sanders, who has stated his opposition to unconditional aid for Israel.

The bill must still be approved by the Republican-led House of Representatives before becoming law. It faces stringent opposition from many in the GOP, who have pushed for the inclusion of funding for domestic security on the southern border.

House Speaker Mike Johnson on Monday said that the latest iteration of the bill had failed to meet those demands, adding it “should have gone back to the drawing board… to include real border security provisions that would actually held end the ongoing catastrophe.”

“Instead, the Senate’s foreign aid bill is silent on the most pressing issue facing our country,” he said in a statement at the time, adding that “the House will have to continue to work its own will on these important matters.”

U.S. President Joe Biden and his top officials have stressed that approving funds is crucial to uphold Washington’s international obligations and to protect domestic security.

Ukrainian President Volodymyr Zelenskyy on Tuesday thanked Senate Majority Leader Chuck Schumer, Senate Republican Leader Mitch McConnell and all the senators who backed the bill.

“For us in Ukraine, continued US assistance helps to save human lives from Russian terror. It means that life will continue in our cities and will triumph over war,” he said on the X social media platform.

Schumer said the Senate was “telling Putin he will regret the day he questioned America’s resolve.”

“With the passage of this national security bill, the Senate is sending a clear bipartisan message of resolve to our allies in NATO,” he said.

Day: February 13, 2024

Biogen experiences a decline in revenue and profit due to expenses related to Aduhelm and a decrease in sales for multiple sclerosis therapies

Coca-Cola exceeded sales expectations, boosted by increased pricing

The Russian economy is anticipated to face significant challenges despite a more positive growth outlook, according to the Managing Director of the International Monetary Fund (IMF)

The U.S. Senate has given its approval for aid to Ukraine and Israel, but the bill encounters a challenging journey through the House.

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