Biogen Inc. delivered a promising third-quarter report, surpassing expectations on revenue and adjusted earnings, driven by the growing success of its groundbreaking Alzheimer’s treatment, Leqembi. The biotech giant raised its full-year profit guidance, citing momentum from Leqembi and other new products.
Biogen’s optimism stems from Leqembi’s accelerating uptake, which has steadily increased over the past few quarters. The therapy generated $67 million in third-quarter sales, exceeding Wall Street estimates of $50 million. This significant growth follows last year’s modest $10 million in sales.
Leqembi, developed in partnership with Japanese pharmaceutical company Eisai, has made history as the second approved treatment to slow Alzheimer’s progression in the US. Although its launch faced initial hurdles, including diagnostic test requirements and neurologist availability, the company’s efforts are paying off.
Biogen’s revenue for the quarter reached $2.47 billion, slightly above expectations of $2.43 billion. Adjusted earnings per share came in at $4.08, surpassing forecasts of $3.79. Net income stood at $388.5 million, or $2.66 per share, a significant turnaround from last year’s net loss of $68.1 million, or 47 cents per share.
The company’s new rare disease and depression treatments also contributed to offsetting declining revenue from its multiple sclerosis products. Biogen now anticipates adjusted earnings between $16.10 and $16.60 per share for the full year, up from its previous forecast of $15.75 to $16.25 per share.
Despite predicting a low-single-digit percentage decline in 2024 sales, Biogen’s momentum from Leqembi and other new products is expected to drive growth.
