Boston, MA – Biogen, a pharmaceutical company based in Cambridge, Massachusetts, exceeded market expectations for first-quarter profit as a result of cost-cutting measures. Despite facing fierce competition for its older drugs, the company’s shares rose nearly 7% prior to the market opening.
One of Biogen’s key highlights was the performance of its Alzheimer’s drug Leqembi, in partnership with Eisai, which saw a significant increase in sales to approximately $19 million. Although this figure fell short of Wall Street’s lofty projections of $30 million, the company attributed the slower adoption of the drug to bottlenecks such as additional diagnostic tests, bi-monthly infusions, and regular brain scans.
CEO Christopher Viehbacher acknowledged the challenges associated with the launch of Leqembi, stating that the process of initiating patients required a significant amount of effort. Despite these obstacles, Viehbacher expressed optimism about the drug’s momentum, noting that the number of patients on Leqembi had increased significantly from the previous year.
While the growth in patient numbers is encouraging, analysts believe that the pace needs to accelerate in order to meet expectations. Biogen is banking on newer drugs like Leqembi to drive growth in the coming years, especially as its existing therapies face heightened competition in the market.
In addition to Leqembi, Biogen’s multiple sclerosis drug Tecfidera performed well, surpassing sales estimates. However, sales of the spinal muscular atrophy drug Spinraza fell short of expectations. The acquisition of Skyclarys through a recent deal also proved beneficial for Biogen, with sales exceeding estimates.
Overall, Biogen reported an adjusted profit per share of $3.67, outperforming analysts’ projections. Despite the challenges and competition in the pharmaceutical industry, the company remains optimistic about its future prospects for growth and development.