By Mariam Sunny (Reuters) -Biogen raised its annual profit forecast and beat estimates for quarterly results on Thursday, as strong demand for its rare disease drugs largely countered declining sales of its older multiple sclerosis treatments. Its shares rose as much as 5.6%, with the drugmaker also topping sales estimates for its keenly-watched Alzheimer’s treatment […]
Health
Biogen signals Leqembi sales gaining momentum, lifts profit forecast
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By Mariam Sunny
(Reuters) -Biogen raised its annual profit forecast and beat estimates for quarterly results on Thursday, as strong demand for its rare disease drugs largely countered declining sales of its older multiple sclerosis treatments.
Its shares rose as much as 5.6%, with the drugmaker also topping sales estimates for its keenly-watched Alzheimer’s treatment Leqembi, which has struggled with slower uptake.
Global sales of Leqembi, developed with Japan’s Eisai, rose fourfold from a year earlier to about $160 million, surpassing analysts’ estimates.
A large part of the jump was driven by U.S. sales at $63 million, which also exceeded estimates of $60.5 million, according to Jefferies.
“This is the first time we’ve seen this market grow approximately by 15% based on total new patient starts,” Biogen’s North America head Alisha Alaimo said on a post-earnings call with analysts.
Leqembi, which sells for $26,500 annually in the U.S., had a slow start due to concerns over cost, efficacy and side effects.
But Biogen said improved rates of blood tests to diagnose the memory-robbing condition have helped with the uptake. The U.S. Food and Drug Administration cleared the first blood test to diagnose Alzheimer’s disease in May.
Meanwhile, Biogen said it does not expect President Donald Trump’s tariffs to have a material impact on its profits this year as a significant portion of its U.S. revenue comes through domestic manufacturing. It announced a $2 billion investment in its key North Carolina manufacturing facility last week.
Pharmaceuticals have long been shielded from tariffs, but the Trump administration has started to include them in trade deals to spur domestic drug manufacturing.
Biogen, under CEO Chris Viehbacher, has turned to deals, cost-cutting and newer drugs to address investor pressure for growth.
Its rare disease portfolio – which includes genetic disorder drug Skyclarys, spinal muscular atrophy drug Spinraza and ALS drug Qalsody – brought in sales of $543 million in the second quarter, up 2% from a year earlier.
Spinraza sales, however, registered an 8.5% fall, hurt by inventory drawdown outside the U.S., which Biogen expects to continue into the third quarter.
On an adjusted basis, the company expects 2025 profit of between $15.50 per share and $16.00 per share, compared with its previous forecast of $14.50 to $15.50.
It earned $5.47 per share in the reported quarter, beating analysts’ expectations of $3.86.
(Reporting by Mariam Sunny in Bengaluru; Editing by Shailesh Kuber and Sriraj Kalluvila)