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.
