Biogen (BIIB) sounded bullish on its pipeline of new products and breakthrough Alzheimer’s treatment Leqembi to offset falling revenue as its key cash-generative multiple sclerosis drugs face increased generic competition.
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BIIB fourth quarter revenues and earnings topped estimates as Leqembi sales, which have been off to a slow start, picked up and its suite of rare disease treatments showed robust growth.
New Treatments Drive Beat for BIIB
Sales of Leqembi, which became in 2023 only the second drug proven to slow the progression of Alzheimer’s to win approval in the U.S., rose to $87 million in the quarter, ahead of estimates for around $67 million.
“Fourth quarter revenue from product launches continued to offset year-over-year decline in multiple sclerosis product revenue,” BIIB said. Its MS drugs array saw revenues of $1.07 billion in Q4, down 8% on the year before, while the rare disease unit revenues rose 13% to $535 million.
Skyclarys, a medicine to treat Friedreich’s ataxia, an inherited disease that causes damage to the nervous system, saw revenues of $102 million. The drug was the result of Biogen’s acquisition of Reata Pharmaceuticals in July 2023.
In Q4, BIIB posted $3.44 adjusted earnings per share against the $3.35 expected on revenues of $2.46 billion, up 3%, against the $2.40 billion forecast by Wall Street.
Nevertheless, Biogen guided for revenues to decline by a “mid-single digit” percentage in 2025 compared to 2024, as its MS drug Spinraza faces increased generic competition. BIIB issued a full-year 2025 adjusted earnings outlook of $15.25 to $16.25 per share, below the $16.34 expected.
BIIB Hails Progress on Leqembi
Last month the U.S. Food and Drug Administration (FDA) gave the green light for monthly dosing of Leqembi, which Biogen and Japanese partner Eisai (EASLF) hope will improve uptake.
The drug won approval in 2023, but sales growth has been slow as it requires regular MRIs and screenings.
However, the companies said maintenance dosing once every four weeks may make it easier for patients and care partners to continue treatment than the current fortnightly regime.
Is BIIB a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on BIIB stock, based on nine Buys and 14 Holds. The average BIIB price target of $201.12 implies 44% upside, but both figures are likely to change as the market and analysts respond to the earnings update.
