Biogen Reaps Profits On The Back Of Cost Cuts

Economists attributed this positive performance to the biotechnological company’s cost-cutting drive and an uptake in sales of its newly-launched Alzheimer’s drug, LEQEMBI. Analysts predicted that the sales of this treatment would be between $13mn and $30mn. Biogen’s Q1 sales of LEQEMBI, as noted by its Japanese partner, Eisai Co., Ltd. (4523.T), were $19mn.

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Salim Sayed, LinkedIn

During trading on Wednesday, 24 April 2024, Biogen shares, at one stage, increased by an estimated 5%. This was as the market responded to the organisation’s Q1 report. Reuters reported that Salim Syed, a Mizuho analyst, said:

Overall, the quarter looks OK, with controlled expense management driving an EPS beat, and 2024 guidance reaffirmed.

Biogen stated that the usage of LEQEMBI has increased almost two-and-a-half times – from approximately 2,000 patients at the end of 2023. In a conference call, the company’s CEO, Christopher Viehbacher, said that LEQEMBI had “an extraordinarily difficult launch”. In its press release regarding Biogen’s first-quarter financials, the firm stated:

LEQEMBI launch uptake accelerated with first quarter global in-market sales of approximately $19 million, nearly triple the fourth quarter of 2023, and patients on therapy increasing nearly 2.5 times since the end of 2023. Significant increase in new patient starts observed in March which contributed over 20% of cumulative patients now on LEQEMBI.

Biogen’s overall product revenue dropped by 3%, while its total revenue increased by 7%.