Biogen shares rose on Wednesday after the company beat Wall Street’s second-quarter expectations. Growth in its newer drug franchises helped make up for ongoing declines in its older multiple sclerosis business.
Biogen reported adjusted earnings of $3.60 per share, beating the $3.04 analysts expected. Revenue grew 3% to $2.7 billion, above the consensus estimate of $2.46 billion, according to FactSet.
Biogen’s growth portfolio, which includes the Alzheimer’s drug Leqembi developed with Eisai, brought in nearly $1.1 billion in revenue, up 24% from last year. This is only the second time the growth segment has outperformed Biogen’s older MS business.
Because of the strong quarter and better business trends, Biogen raised its full-year earnings guidance to $15.85 to $16.85 per share, up from $15.25 to $16.25. However, on a reported basis, the company lowered its full-year earnings outlook to $12 to $13 per share, down from $14.25 to $15.25, due to the impact of its recent Apellis Pharmaceuticals acquisition. Biogen now expects full-year revenue to grow by a mid-single-digit percentage, reversing its earlier forecast from April that predicted a similar-sized decline.
Shares climbed 3.9% on Wednesday, even though major U.S. indexes were down.
Biogen is still the market leader in multiple sclerosis treatments, but increased generic competition has steadily weakened its older products like Tecfidera, Tysabri, and Vumerity. The MS portfolio brought in $963 million in revenue this quarter, down from $1.1 billion a year ago. While it still contributes a lot, its decline means newer products need to make up the difference.
The company’s rare disease portfolio performed well, with revenue rising to $602 million from $543 million last year, beating the $590 million analysts expected. This group includes Skyclarys for Friedreich’s ataxia and Qalsody for ALS, both added through deals like Biogen’s 2023 purchase of Reata Pharmaceuticals and an earlier agreement with Ionis Pharmaceuticals.
Leqembi, which is expected to drive more growth in the future, continued to grow gradually. Collaboration revenue from the drug increased to $63.7 million from $54.9 million last year, but this was below the $70 million analysts had forecast.
Despite the growiEven with more focus on new therapies, Biogen’s MS business is still important. Tysabri, in particular, has stayed strong even after key patents expired.
