Biogen Inc. reported third-quarter revenue and earnings that exceeded Wall Street expectations, thanks to strong performance from its Alzheimer’s treatment Leqembi and promising rare disease and depression therapies.
In light of these gains, the Cambridge-based biotech company raised its full-year profit guidance, despite a slight decline in revenue from other segments.
The Alzheimer’s drug Leqembi, co-developed with Japanese partner Eisai, generated $67 million in third-quarter revenue, with $39 million of those sales coming from the US This was above analysts’ projections of $50 million in global sales, highlighting growing demand despite logistical hurdles, such as requirements for diagnostic tests and regular brain scans. Leqembi, the second US-approved therapy proven to slow Alzheimer’s progression, launched last year but has seen uptake gradually increase as these barriers are addressed.
Biogen’s adjusted earnings for the quarter reached $4.08 per share, surpassing analysts’ expectations of $3.79 per share. Revenue stood at $2.47 billion, a modest decline of 3% year-over-year, although still above the anticipated $2.43 billion.
With Leqembi’s traction and other new product launches balancing losses in its multiple sclerosis (MS) portfolio, Biogen now anticipates full-year adjusted earnings between $16.10 and $16.60 per share, up from previous estimates. MS treatments, the company’s largest segment, generated $1.05 billion in the quarter—a 9% drop year-over-year—as revenue from leading drugs Tecfidera and Vumerity missed projections. Other segments, including the rare disease and biosimilars divisions, reported slight growth.
Biogen’s chief executive Christopher Viehbacher highlighted the company’s “ongoing momentum” in product launches and promising pipeline developments in Alzheimer’s and lupus treatments. Nonetheless, the stock remains under pressure, down 29% in 2024, while the S&P 500 has seen gains.
CNBC, Market Watch, Investor’s Business Daily contributed to this report.
