Biogen tops estimates, raises profit guidance as Alzheimer's drug Leqembi gains traction

Biogen on Wednesday reported third-quarter revenue and adjusted earnings that topped expectations while raising its full-year profit guidance, as sales of its breakthrough Alzheimer's drug, Leqembi, and other new products gain traction. 

Biogen now expects full-year adjusted earnings to come in between $16.10 and $16.60 per share, up from a previous forecast of $15.75 to $16.25 per share. The biotech company still expects 2024 sales to decline by a low-single-digit percentage. 

Leqembi, which Biogen shares with the Japanese drugmaker Eisai, became the second drug proven to slow the progression of Alzheimer's to win approval in the U.S. last summer. The therapy's launch has been gradual due to bottlenecks related to diagnostic test requirements, regular brain scans and finding neurologists, among other issues. 

Still, uptake of Leqembi has been picking up over the last few quarters. The treatment brought in $67 million in sales for the third quarter, including $39 million from the U.S. 

Wall Street analysts had expected global sales of Leqembi of $50 million, according to estimates compiled by StreetAccount. The drug posted just $10 million in sales last year following its launch. 

It is unclear how many patients are currently taking the drug. Leqembi, along with Biogen's new rare disease and depression treatments, helped offset a year-over-year decline in revenue for the company's multiple sclerosis products. 

Here's what Biogen reported for the third quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $4.08 adjusted vs. $3.79 expected
• Revenue: $2.47 billion vs. $2.43 billion expected

Biogen booked sales of $2.47 billion for the quarter, which is down around 3% from the year-earlier period. 

The drugmaker posted net income of $388.5 million, or $2.66 per share, for the period ended September 30. That compares with a net loss of $68.1 million, or 47 cents per share, for the same period a year ago. 

Adjusting for one-time items, including certain restructuring charges and costs associated with intangible assets, the company reported earnings of $4.08 per share.