Biogen Raises Outlook After Slow Start for Alzheimer’s Drug

(Bloomberg) -- Biogen Inc. raised its financial guidance for the year despite expecting little revenue in the near term from its just-approved Alzheimer’s therapy.

Sales of the controversial drug, which was approved earlier this year in the U.S., were just $300,000 in the quarter, the company said in a statement Wednesday. Some doctors have said that they won’t prescribe the drug and Medicare hasn’t yet decided whether it will cover it.

“The potential uptake of Aduhelm in the U.S. is delayed, but we continue to believe in its long-term potential,” said Chief Executive Officer Michel Vounatsos. He said on a call with analysts that 120 sites are now treating patients with the drug.

Biogen shares, which were up 9.5% this year through the close of trading on Tuesday, gained 1.5% at 10:13 a.m. in New York.

The company said that despite the slow uptake of its newest treatment, it expects stronger results for the year than it had previously projected, propelled by demand for its older products.

Biogen raised its 2021 revenue forecast to a range of $10.8 billion to $10.9 billion, compared with an earlier forecast of $10.65 billion to $10.85 billion. And it expects adjusted per-share earnings of $18.85 to $19.35, up from $17.50 to $19 previously.

Adjusted earnings came to $4.77 a share in the just-ended quarter, versus analyst expectations for $4.08 a share. Revenue was $2.78 billion, ahead of analysts’ expectations of $2.68 billion but down 18% from the same period a year earlier.

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