Biogen Inc (NASDAQ:BIIB) shares fell Wednesday after the company reported declining fourth-quarter sales and revealed that it expects that trend to continue in 2023.
The company expects sales to decline by mid-single digit percentages in 2023 after they fell nearly 7% to $2.54 billion in the fourth quarter. Biogen also forecast full-year adjusted profit of $15 to $16 per share, compared with analysts' estimates of $15.72 per share.
Shares of the company were down 4% to $277.40 Wednesday afternoon.
In the fourth quarter, the company reported revenue that topped analyst expectations of $2.44 billion. Revenue fell year-over-year, though thanks in part to declining sales of its drug Tecfidera.
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In an effort to turn things around, CEO Christopher Viehbacher is prioritizing the launches of Alzheimer's disease treatment Leqembi and depression drug zuranolone, as well as M&A deals. Viehbacher joined the company in November.
"Over the last couple of years, the company has lost its way somewhat and now it is in a declining revenue situation," Viehbacher told reporters at a briefing. "So the first order of the day is really to restore the growth of the company."
Biogen expects US approval of Leqembi this summer of later in the year, and the company also hopes to get US approval of depression treatment zuranolone this year.
Prior to the results, Canaccord reiterated a Buy rating and $325 price target for the stock.
“With recent wins on Leqembi (pending full approval; decision on CMS reimbursement) and zura (action date of 8/5 with priorityreview), [Biogen] appears to have the luxury of being able to play from a position of strength (at least relative to the gloomy Aduhelm days),” analysts wrote. “As such, we believe our thesis on the stock is firmly on track.”
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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