Biogen profits beat expectations as costs fall, Alzheimer’s drug Lakembi accelerates

In this image taken on December 1, 2021, a test tube can be seen in front of the displayed Biogen logo.

Dado Ruvik

Biogen Wednesday’s report topped first-quarter profit expectations as the company’s cost-cutting efforts materialized and sales of its closely watched Alzheimer’s drug Lakembi topped expectations.

Biogen and JesusIn July, Lakembi became the first drug approved in the US to slow the progression of Alzheimer’s disease. Rollout of the therapy has been slow, but adoption has accelerated in the first quarter.

Sales of Lakembi were about $19 million in the quarter, up from $10 million for the drug last year. The figure topped analysts’ expectations of $11 million, according to estimates compiled by FactSet.

According to Biogen, the number of patients receiving the therapy has increased nearly 2.5 times by the end of 2023. The company added that the number of new patients starting Lakembi increased in March, accounting for more than 20% of the number of patients currently receiving the treatment.

Biogen did not provide a specific number of patients taking Lakembi. In February, Biogen CEO Chris Viehbacher told reporters that about 2,000 patients are currently receiving Lakembi treatment.

The company expects the drug and other newly launched products to drive growth as costs decrease as sales decline in its multiple sclerosis treatment, some of which face generic competition.

Biogen’s first-quarter report compared with Wall Street expectations, according to a survey of analysts by LSEG:

• Earnings per share: Adjusted $3.67, $3.45 expected
• Revenue: $2.29 billion, vs. $2.31 billion expected

The biotech company’s sales for the quarter were $2.29 billion, down 7% from the same period last year. The company reported net income of $393.4 million, or $2.70 per share, in the first quarter, up from $387.9 million, or $2.67 per share, in the same period last year.

Adjusted for one-time items, the company earned $3.67 per share.

Biogen reiterated its forecast for full-year 2024 consolidated earnings of $15 to $16 per share. Analysts polled by LSEG had expected full-year profit guidance of $15.49 per share.

The company also reiterated its 2024 sales guidance for a low-to-mid-single-digit percentage decline from last year.

Apart from Lakembi, investors are also eyeing other newly launched drugs.

These include Skyclaris, which came from Biogen’s acquisition of Rita Pharmaceuticals in July. The drug generated $78 million in revenue in the fourth quarter.

Analysts had expected sales of $68.8 million, according to FactSet estimates.

The US Food and Drug Administration approved Skyclaris last year, making it the first drug approved to treat Friedreich’s ataxia. Friedreich’s ataxia is a rare genetic degenerative disease that impairs walking and coordination in children under 5 years of age. In February, EU regulators approved Skyclaris to treat Friedreich’s ataxia in patients aged 16 and over.

Biogen partnered with Sage Therapeutics to develop the first drug to treat postpartum depression, which was approved by the FDA in August. But the agency declined to approve the drug to treat major depression, a much larger market.

Biogen said the drug, called Jurjuva, generated $12 million in first-quarter sales. Analysts had expected sales of just $5 million, FactSet said.

Meanwhile, Biogen’s first-quarter multiple sclerosis product revenue fell 4% to $1.08 billion as some of its treatments faced competition from cheaper generics.

The company’s once-blockbuster drug Tecfidera, which has faced competition from generic rivals, reported first-quarter revenue of $254.3 million, down from $274.5 million in the same period last year.

However, that figure was higher than analysts’ expectations of $227.7 million, according to FactSet.

Vumerity is an oral drug for the treatment of relapsing forms of multiple sclerosis with sales of $127.5 million. FactSet estimated the number was lower than analysts’ estimate of $137.9 million.

Biogen’s orphan drug sales were $423.9 million, down from $443.3 million in the same period last year.

Spinraza, a drug used to treat the rare neuromuscular disease spinal muscular atrophy, sold $341.3 million. That was below analysts’ revenue estimates of $415.1 million, according to FactSet.

Biogen said Spinraza shipment timing and increased competition outside the U.S. impacted first-quarter revenue comparisons.

The company’s biosimilar sales were $196.9 million, up slightly from the $192.4 million reported in the same period last year. Analysts had expected sales of the drug to reach $192.5 million.