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Biogen exceeds profit estimates with strong drug sales boost.
Biogen's Q1 2024 results reflect resilience despite slight revenue miss - with newer drugs exceeding expectations, there is potential for stock turnaround.
Biogen Inc. (BIIB) unveiled its Q1 2024 financial results, revealing a mix of declines and surges across its product portfolio. The pharmaceutical giant recorded revenue of $2.29 billion, marking a 7% decrease from the same quarter last year but falling slightly short of analysts' expectations by 1.09%. Despite the revenue miss, Biogen's earnings per share (EPS) of $3.67 outperformed estimates, showing a notable increase from $3.40 in the previous year and surpassing the consensus EPS estimate of $3.45 by 6.38%.
A deep dive into the company's key product performances against Wall Street projections provides further insight into Biogen's financial health. Tecfidera, a Multiple Sclerosis (MS) treatment, saw its rest-of-world revenue grow by 5.4% year over year, achieving $210.60 million against an expected $172.03 million. However, Tecfidera's U.S. revenue experienced a significant decline, falling 41.5% to $43.70 million, below analysts' $51.79 million forecast.
Spinraza, Biogen's therapy for Spinal Muscular Atrophy (SMA), presented mixed results. Rest-of-world sales dropped by 35% to $192.80 million, notably underperforming against a $277.93 million expectation. Conversely, U.S. sales mildly increased by 1.2%, amounting to $148.50 million, nearly matching the forecast of $150.83 million. Overall, Spinraza's global revenue decreased by 23% to $341.30 million, missing the anticipated $421.22 million.
Tysabri, another MS treatment offered by Biogen, recorded a total revenue of $431.30 million, facing an 8.8% year-over-year decrease and slightly missing the mark of the $433.75 million estimate. On a positive note, Biogen's contract manufacturing and other revenue categories exceeded expectations, reporting $184.60 million against a predicted $141.62 million.
Biogen's venture into rare diseases with SKYCLARYS garnered attention, generating $78 million, surpassing the $69.20 million estimated by analysts. In contrast, revenues for Fampyra and Fumarate (including Tecfidera), both MS treatments, depicted a downturn with Fampyra dropping by 20.3% and Fumarate slipping by 7.4%. The company also witnessed a slight increase in its biosimilars business, which went up by 2.3% to $196.90 million, outdoing the $191.45 million forecast.
Reflecting on the stock performance, Biogen shares experienced an 8.9% decrease over the last month, in contrast to a 3% downturn in the Zacks S&P 500 composite. Currently holding a Zacks Rank #3 (Hold), Biogen's market performance suggests a potential alignment with broader market trends in the near future, hinting at the market's cautious optimism towards the company's ability to navigate its challenges and capitalize on its strengths amidst a fluctuating pharmaceutical landscape.
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