Biogen's Shares Are Trading Lower On 71% Quarterly Profit Slump, Weak Tecfidera Sales

Biogen's Shares Are Trading Lower On 71% Quarterly Profit Slump, Weak Tecfidera Sales

Biogen Inc (NASDAQ: BIIB) reported a 70.7% fall in Q1 profit as its top-selling multiple sclerosis drug Tecfidera faced increased competition from cheaper generic drugs.

Net income fell to $410.2 million, or $2.69 per share for the quarter from $1.40 billion, or $8.08 per share, a year earlier.

Adjusted EPS came in at $5.34, down from $9.14 a year ago, but higher than the consensus of $5.04.

Sales of Tecfidera more than halved to $479.3 million, while higher-than-expected sales for spinal muscular atrophy treatment Spinraza of $520.5 million cushioned eroding sales of Tecfidera.

Investors are focused on an upcoming FDA regulatory decision on the company's experimental Alzheimer's disease drug aducanumab as the June 7 PDUFA date looms.

One glance at the woeful Q1 performance of the company makes it completely clear just how vital aducanumab OK is for the company. Biogen said it already started the preparations for the potential launch.

The company has submitted an aducanumab marketing application in Brazil, Canada, and Switzerland.

Outlook: Biogen raised FY2021 adj. EPS guidance from $17.00-$18.50 to $17.50-$19.00 versus consensus of $18.41. It sees sales of $10.45 billion $10.75 billion in line with an estimate of $10.57 billion.

The company also expects to utilize a portion of the remaining share repurchase authorization of $4 billion throughout 2021.

Price Action: BIIB shares are down 2.74% at $262.46 in market hours on the last check Thursday.

Disclaimer: © 2021 Benzinga does not provide investment advice. All rights reserved.

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