Biogen raises guidance as topline outperforms amid ongoing cost management

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Even as its topline continued to contract, Q3 2022 results of Alzheimer’s drug developer Biogen (NASDAQ:BIIB) exceeded the consensus on Tuesday. The company raised the 2022 guidance due mainly to better-than-expected topline performance and ongoing cost management.

In September, Biogen (BIIB) and partner Eisai Co., Ltd. (OTCPK:ESALY) (OTCPK:ESALF) reported positive topline data from the Phase 3 trial for experimental Alzheimer’s therapy lecanemab.

“We are excited about the topline results of the Clarity AD trial for lecanemab and believe this potential new therapy could provide a meaningful benefit for Alzheimer’s patients,” Biogen (BIIB) Chief Executive Michel Vounatsos said.

The company reiterated plans to file for traditional approval in the U.S. and seek marketing authorization applications in Japan and Europe for the anti-amyloid antibody before March 31, 2023.

In terms of financials, revenue for the period dropped ~10% YoY to reach ~$2.5B as total product revenue fell ~11% YoY to ~$2.0B while multiple sclerosis sales, including royalties from sales of Roche (OTCQX:RHHBY)- partnered OCREVUS stood at $1.6B with a ~11% YoY decline.

TECFIDERA and AVONEX sales exceeded Street forecasts to reach $339.0M and $255.1M despite ~32% YoY and ~15% YoY declines, respectively, while Spinal muscular atrophy therapy SPINRAZA added $431M ahead of the consensus with ~3% YoY drop.

Notably, sales from the company’s controversial Alzheimer’s therapy Aduhelm stood ahead of consensus at $1.6M compared to $0.3M a year ago.

Biogen (BIIB) reported $7.84 adjusted earnings per share compared to $2.22 in the prior year, driven by a $504M gain from the sale of a building as part of efforts to optimize office space in light of hybrid work models.

Noting better-than-expected revenue and ongoing cost management initiatives Biogen (BIIB) increased its 2022 outlook to a range in line with the consensus, following a similar guidance raise three months ago.