Biogen beats Q1 profit forecasts with cost cuts, Alzheimer's drug launch

Biogen Inc. reported a stronger-than-expected first-quarter profit, driven by a surge in sales of its new Alzheimer's drug, Leqembi, and strategic cost-cutting measures. The drug, co-developed with Eisai and approved in the US last year, generated sales of approximately $19 million in the quarter, significantly exceeding analyst predictions and nearly tripling from the $10 million reported in the previous year. The company noted a nearly 2.5-fold increase in the number of patients on Leqembi since the end of 2023, with over 20% of these new patients beginning treatment in March alone.

Despite a 7% year-over-year decline in total revenue, Biogen's net income rose to $393.4 million, or $2.70 per share, in the first quarter. This performance comes as Biogen continues to restructure under CEO Christopher Viehbacher's leadership, having made significant moves like acquiring Reata Pharmaceuticals and divesting from other projects, including the controversial Alzheimer's drug Aduhelm. The company has also reiterated its full-year 2024 earnings forecast, expecting adjusted earnings of $15 to $16 per share.

Biogen's shares reflected investor optimism, rising by 4% early on the bell. However, the company has advised caution, suggesting that a significant jump in revenue should not be immediately expected. Biogen anticipates a low- to mid-single digit percentage decline in total revenue for 2024, with core pharmaceutical revenue projected to remain relatively stable compared to 2023. Despite the challenges, Biogen has maintained a strong financial position, ending the quarter with cash, cash equivalents, and marketable securities totaling approximately $1.1 billion.