Biogen Inc (NASDAQ:BIIB) revised its full-year earnings guidance downward due to acquisition-related costs following the company’s $7.3 billion bid for Reata Pharmaceuticals (RETA) in July.
The firm said it anticipates a smaller dip in sales after reporting quarterly revenue that exceeded analysts' expectations.
Biogen’s 3Q results were largely in line with expectations, with revenues of $2.53 billion surpassing the consensus estimate of $2.40 billion.
Notably, Leqembi sales of $2 million were consistent with Monday's Eisai results, where it was implied that the next two quarters could see sales of $65 to $70 million.
Third-quarter adjusted earnings (EPS) decreased by 8.6% to $4.36 per share, but this was still above analyst estimates.
Biogen's guidance was adjusted to account for the RETA acquisition, which was completed in late 3Q. The group now expects a low-single-digit percentage decline in total revenue, which was updated from a previous guidance of a mid-single-digit percentage decline. EPS was adjusted to include a $0.75 negative impact from RETA expenses and integration.
According to Jefferies analysts, the focus remains on the Leqembi launch, which achieved $2 million in sales in 3Q, in line with expectations. Eisai anticipates 10,000 patients by March 2023, with 800 already on it as of late October. Eisai expects revenue growth to accelerate in December, coinciding with their finalized go-to-market strategy and ramp-up in the US.
Eisai plans to begin discussions with the FDA for SubQ shortly, aiming for a filing by March 2024. SubQ offers a more convenient option for patients, and it is expected to be available in the market by late 2024 or early 2025.
Shares of Biogen fell 5.5% on Wednesday in midday trading.