Why Is Biogen Stock Trading Lower On Tuesday?

On Tuesday, Biogen Inc BIIB posted fourth-quarter 2023 sales of $2.39 billion, missing the consensus of $2.46 billion, down 6% Y/Y and 5% at constant currency (CC).

Adjusted EPS of $2.95, down 27%, missing the consensus of $3.18.

Multiple sclerosis revenue of $1.17 billion decreased by 8% (down 6% CC). Multiple sclerosis drug Tysabri sales were down to $464.7 million from $488.4 million.

Rare disease revenue increased 3% Y/Y (+6% CC) to $472 million. Spinraza’s revenue fell to $412.6 million from $458.8 million a year ago.

Revenues from Skyclarys, acquired via Reata acquisition, reached $55.9 million during the quarter.

Earlier Tuesday, the European Commission approved Skyclarys (omaveloxolone) for Friedreich’s ataxia (FA) in adults and adolescents aged 16 and above. 

Fourth quarter 2023 in-market product revenue for Leqembi (for Alzheimer’s disease) recorded by Eisai Co Ltd ESALY was approximately $7 million. Fiscal year 2023, Leqembi sales were approximately $10 million. 

Related: Biogen Gives Up On Aduhelm Efforts After Two Years Of Controversial FDA Accelerated Approval For Alzheimer’s, Shifts Focus On Newer Medicines.

Guidance: For the fiscal year 2024, Biogen forecasts adjusted EPS Of $15.00-$16.00 versus consensus of $15.45, up around 5% versus 2023 at the mid-point.

The company expects 2024 total revenue to decline by a low- to mid-single-digit percentage, with operating income expected to grow at a low-double-digit percentage.

The Fit for Growth program is expected to generate approximately $1 billion in gross savings and $800 million net of reinvestment by 2025. 

Since the program was initiated in 2023, approximately $200 million of savings have been achieved. Biogen expects to realize approximately half of the net savings by the end of 2024, with the balance by the end of 2025.

Price Action: BIIB shares are trading 6.21% lower at $229.55 on the last check Tuesday.