Advertisment

Biogen's 2024 Outlook: Challenges and Hope in New Alzheimer's Drug

author-image
Anthony Raphael
New Update
NULL

Biogen's 2024 Outlook: Challenges and Hope in New Alzheimer's Drug

Advertisment

Overview of Biogen's 2024 Forecast

Advertisment

Biogen, a prominent figure in the pharmaceutical industry, recently released its forecast for 2024, indicating flat product revenue. This projection comes in light of stiff competition for its top-selling drugs and a sluggish performance in sales of its newer treatments. However, amidst these challenges, the company sees a glimmer of hope in its new Alzheimer's drug, Leqembi. Biogen is banking on an uptick in demand for Leqembi, which could potentially bolster the company's revenue.

Financial Details and Expectations

According to Biogen's 2024 adjusted profit forecast, the company is expecting to see profits in the range of $15 to $16 per share. This represents a 5% increase at the midpoint. However, this forecast falls short of Wall Street's expectations. Furthermore, the company's revenue for the fourth quarter fell by 6.2% to $2.39 billion, missing estimates. Sales of their drugs, Spinraza, Tecfidera, and Skyclarys, also failed to meet expectations.

Advertisment

Challenges and Changes

Biogen's fourth-quarter revenue and profit saw a decrease compared to the previous year, as the company recorded charges related to the discontinuation of its controversial Alzheimer's drug, Aduhelm. Sales also dropped for its multiple sclerosis therapies. The company's multiple sclerosis drug sales saw an 8% decline, bringing in $1.17 billion. Meanwhile, Biogen's once blockbuster drug, Tecfidera, posted a 17.8% decrease in revenue during the fourth quarter, earning $244.3 million. On a positive note, the company's rare disease drugs recorded $471.8 million in sales, marking a 3% increase from the same period in the previous year.

The Hope Pinned on Leqembi

Advertisment

Despite the challenges, Biogen is actively looking for ways to revitalize its financial performance. One of these strategies is the bolstering of the U.S. sales force for Leqembi by 30%, with the aim of boosting the drug's sales. While Leqembi is not expected to reach the target of 10,000 patients by March, it is gaining traction. This new Alzheimer's drug, developed in conjunction with Eisai, became the first drug proven to slow the progression of Alzheimer's disease to win approval in the U.S. in July.

Looking Forward

Biogen is optimistic about its return to profit growth in 2024. The company is implementing cost-cutting measures and is hopeful about the increase in sales of its newer drugs. CEO Christopher Viehbacher has initiated changes such as job cuts, a review of its biosimilars business, and a $6.5-billion deal for rare disease drugmaker Reata, all in an effort to return the company to growth. However, Biogen's shares fell by 5% in pre-market trading after missing Wall Street's estimates for its fourth-quarter results.

Conclusion

Biogen's 2024 forecast presents a mixed bag of challenges and opportunities. While the company grapples with stiff competition and slow sales of newer treatments, there is hope in the potential of its new Alzheimer's drug, Leqembi. As the company gears up to navigate these challenges, it remains to be seen how its strategies will pan out in the long run.

Advertisment
Chat with Dr. Medriva !