Biogen Revises Annual Forecast As Reata M&A And Alzheimer's Drug Expenses Hit Bottomline, Stock Slides

Biogen Inc BIIB posted Q3 FY23 sales of $2.53 billion, beating the consensus of $2.39 billion, up 1% Y/Y and 3% at constant currency (CC).

Adjusted EPS of $4.36, down 9%, beating the consensus of $3.97.

Multiple sclerosis revenue of $1.16 billion decreased by 14% (down 12% CC). Multiple sclerosis drug Tysabri sales are down to $456.3 million from $505.5 million.

Spinraza's revenue of $448.2 million compared to $431.1 million a year ago.

Third quarter 2023 in-market product revenue for Leqembi recorded by Eisai Co Ltd ESALY was approximately $2 million.

Also Read: FDA Approves Sage Therapeutics/Biogen's Zuranolone For One Type Of Depression, Rejects For Another.

Guidance: For the full year 2023, Biogen is updating its guidance ranges to reflect the completed acquisition of Reata and its previously projected dilution to 2023 Non-GAAP diluted EPS, regulatory approval for Zurzuvae in PPD, and the modification made to the presentation of Leqembi expenses. 

Biogen revises its FY23 revenues to decline in a low-single-digit percentage versus FY22 compared to earlier guidance of a mid-single-digit percentage decline.

The company expects an adjusted $14.50-$15.00, reflecting ~$0.75 of dilution from the Reata acquisition compared to prior guidance of $15.00-$16.00 and consensus of $15.23.

Price Action: BIIB shares are trading lower by 4.60% at $234.32 on the last check Tuesday.