fourth quarter Archives - The Entrepreneur Times

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.

Germany experienced a 0.3% year-on-year contraction in its economy in 2023, attributed to high inflation and firm interest rates, as reported by the Federal Statistical Office of Germany on Monday. Analysts’ expectations were met, with a slight improvement to a 0.1% decline when adjusted for calendar purposes.

Ruth Brand, the president of the federal statistics office, noted, “The overall economic development in Germany stalled in 2023 in the still crisis-ridden environment.” Brand highlighted persistently high prices across the economy, coupled with unfavorable financing conditions due to rising interest rates and decreased demand domestically and internationally.

In December, German inflation rose to 3.8% year-on-year on a harmonized basis, leading the European Central Bank to maintain unchanged interest rates for the second consecutive time. The manufacturing sector, excluding construction, witnessed a sharp 2% decline, primarily driven by reduced production in the energy supply sector. Weak domestic demand and subdued global economic dynamics hindered foreign trade, resulting in a 1.8% drop in imports, outpacing the decline in exports.

Household consumption contracted by 0.8%, and government expenses slimmed by 1.7%. The fourth quarter mirrored a 0.3% drop compared to the July-September period, narrowly averting a technical recession defined by two consecutive quarters of GDP decline.

Early indicators suggested a slow economic recovery for Germany, according to a German economy ministry report. Capital Economics predicted continued challenges for Germany, forecasting zero GDP growth in 2024. Chief Europe Economist Andrew Kenningham cited ongoing recessionary conditions, potential contractions in residential and business investment, a downturn in construction, and a sharp fiscal policy tightening.

Despite facing economic challenges throughout the previous year, including disruptions in Russian energy supplies, Germany managed to weather the storms. The country had been dubbed the “sick man” of Europe, with analysts initially predicting it to be the only major European economy to contract in 2023.

Germany grappled with a budgetary crisis towards the end of the year due to a constitutional court ruling on national borrowing restrictions. The national debt brake, enshrined in Germany’s constitution, became a contentious issue in national politics. To address the situation, the German government suspended the borrowing limit and secured a budget deal, aiming to save 17 billion euros ($18.6 billion) through measures such as ending climate-damaging subsidies and implementing cost-cutting initiatives.

Tag: fourth quarter

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

Germany narrowly avoids a recession at the close of 2023 but grapples with the prospect of an extended economic downturn.

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