Biogen stock slipped early Thursday despite a second-quarter beat that included better-than-expected sales of its new Alzheimer's treatment, Leqembi.
During the June quarter, Eisai-partnered Leqembi brought in $40 million in sales, above calls that ranged from $30 million to $35 million, according to analysts' reports. But the beat stemmed from $10 million in sales outside the U.S., RBC Capital Markets analyst Brian Abrahams said. Given European regulators just rejected Leqembi, international sales are likely to be lower long term.
"Biogen noted they were encouraged by the order rate and growth in new physicians and while we are seeing early signs of an acceleration, our work suggests that awareness of the brand remains low — though entry of a new competitor may help grow the market and drive Leqembi use," Abrahams said in a report.
Biogen stock fell 1.2% to 210.70. Shares are trading below their 50-day and 200-day lines, according to MarketSurge.
Biogen Stock: Sales Rise 1% In Constant Currency
Across all products, sales were flat at $2.47 billion. In constant currency, sales eked out a 1% gain. But revenue topped the $2.39 billion forecast from analysts surveyed by FactSet.
Adjusted earnings came in at $5.28 a share, rocketing 31% to handily beat expectations for $4.02 per share. But that included a 52-cent benefit from selling a priority review voucher for $89 million in net proceeds. Excluding that, earnings still would have topped projections.
Piper Sandler analyst Christopher Raymond said the majority of Biogen's products topped sales predictions. The exceptions included Qalsody, Avonex and Plegridy.
Qalsody, a treatment for amyotrophic lateral sclerosis, or ALS, brought in $5 million in sales. That missed forecasts for $6 million to $7 million. Multiple sclerosis drugs Avonex and Plegridy generated $250.9 million, short of the Street's call for $255 million, but above Raymond's $248 million estimate.
Raymond has an overweight rating on Biogen stock.
Notably, sales of spinal muscular atrophy treatment Spinraza beat sales expectations at $429.1 million. Analysts projected $407 million to $412 million. Sales from Friedreich's ataxia drug Skyclarys came in better than expected at $100 million. The Street called for $82 million to $84 million. But $24 million of that came from outside the U.S., RBC's Abrahams said.
"U.S. Skyclarys sales of $76 million were in line with our $76 million estimate," he said. "Recall, Biogen has guided that the sales trajectory going forward may be more 'lumpy.' "
Earnings Guidance Hiked
Biogen raised its adjusted earnings guided to $15.75 to $16.25 a share, which would increase 9% vs. last year at the midpoint. The low end of the outlook beat Biogen stock analysts' call for $15.60.
The company also narrowed its sales outlook and now expects a low-single digit decline. Core pharma revenue is expected to be flat year over year. Analysts projected $9.52 billion in sales, which would fall 3.2%.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
