Biogen lifts 2024 profit forecast on cost cuts, drug launches, ET HealthWorld

London: Biogen lifted its full-year earnings forecast on Thursday, as the launch of new treatments and cost-cutting program are expected to make up for falling sales of its older multiple sclerosis medicines.

The drugmaker has cut jobs, bolstered its pipeline for rare disease medicines through takeover deals and unveiled new products, such as Alzheimer’s disease drug Leqembi, as part of a plan to return to growth.

Biogen also said on Thursday it would retain its biosimilars business, for which it had been exploring options, including a sale, since CEO Christopher Viehbacher took the helm in 2022.

Sales of Leqembi, which it sells with Eisai, came in at $40 million for the second quarter ended June 30. Wall Street consensus was at $30-$33 million, according to brokerage Jefferies.

Leqembi sales in the United States have been slow to take off due to requirements such as additional diagnostic tests, twice-monthly infusions and regular brain scans.

In a fresh blow to the companies, the drug’s application was rejected in the EU last week.

Revenue for the quarter came in at $2.47 billion, compared with LSEG estimates of $2.38 billion.

Sales of spinal muscular atrophy drug Spinraza, which is competing with rival drugs made by Roche and Novartis , fell 1.8 per cent to $429.1 million, but beat estimates of $405.24 million.

Skyclarys, used in treating a rare genetic disorder that causes progressive damage to the nervous system, brought in sales of $100 million for the quarter. Analysts had expected $92.06 million.

Sales of multiple sclerosis drugs such as Tecfidera fell 4.9 per cent to $1.15 billion.

(Reporting by Mariam Sunny and Manas Mishra in Bengaluru; Editing by Anil D’Silva)