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Biogen Results Top Forecasts on Strong Sales, Lower Costs

Biogen Results Top Forecasts on Strong Sales, Lower Expenses

(Bloomberg) -- Biogen Inc. posted stronger-than-expected fourth-quarter results powered by robust sales for key drugs and cost cutting, as the biotechnology company prepares to seek approval for a potentially landmark treatment for Alzheimer’s disease.

  • Adjusted earnings per share were $8.34, topping the $8.05 expected by Wall Street analysts. Revenue of $3.67 billion beat the $3.54 billion average estimate.

Key Insights

  • Spinal muscular atrophy treatment Spinraza, at $543 million up 16% in annual terms, and multiple sclerosis treatment Tecfidera, at $1.16 billion up 5%, were key drivers of the overall sales gains, coming in near Wall Street forecasts.
  • Some belt tightening also helped: Selling, general and administrative costs fell 12%, and research & development expenses declined 13%.
  • The company is increasingly focused on Alzheimer’s disease treatments despite skepticism among some investors about its aducanumab therapy, which it revived after briefly abandoning its research. CEO Michel Vounatsos said the company has begun to prepare for the drug’s launch, including hiring a sales force.
  • Looking ahead, Biogen expects adjusted earnings per share for 2020 of $31.50 to $33.50, against an average estimate among analysts of $32.58.

Market Reaction

Shares of Cambridge, Massachusetts-based Biogen were up 2.1% in premarket trading Thursday in New York. Over the 12 months through Wednesday’s close, the stock had declined 14%.

Get More

  • Read Biogen’s news release about its results here.
  • Read more details of Biogen’s financial metrics here.

To contact the reporter on this story: Robert Langreth in New York at rlangreth@bloomberg.net

To contact the editors responsible for this story: Drew Armstrong at darmstrong17@bloomberg.net, Timothy Annett

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