Biogen Inc.

NASDAQ Global Select
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Bullish +75

Biogen Had A Nearly Perfect Sales Sweep, But One Beat Really Stood Out - Investor's Business Daily

📈 Biogen stock surged 6.1% to close at $194.48 after earnings beat Wall Street expectations across nearly all growth products.

💊 Leqembi sales grew 74% year-over-year to $168 million, significantly outpacing the analyst consensus of $154 million.

🧠 The Alzheimer's drug Leqembi has captured 60% market share against Eli Lilly’s Kisunla, with dosing frequency cited as a key differentiator.

💉 FDA approval is anticipated soon for a new Leqembi regimen combining injection and under-the-skin Iqlik devices to reduce patient burden.

🏥 Biogen reported adjusted earnings per share of $3.57, exceeding forecasts of $2.96 due to an in-process R&D charge adjustment.

💰 The company took a $200 million one-time hit for in-process R&D expenses and lowered its full-year profit forecast by $1 per share.

📉 Total quarterly sales reached $2.48 billion, slightly beating analyst projections despite a 2% decline on an exchange-rate-neutral basis.

💊 The company's largest revenue driver, Spinraza, contributed $374 million in sales, falling short of growth but still beating forecasts.

⚠️ Zurzuvae sales for postpartum depression doubled to $55 million but missed more bullish analyst estimates of $64 million.

🤝 Biogen confirmed the planned acquisition of Apellis Pharmaceuticals for $5.6 billion is expected to close in the second quarter.

🧬 The Apellis deal aims to add two approved medicines and support felzartamab development for kidney disease and other autoimmune conditions.

🦶 Skyclarys, Vumerity, and Qalsody all contributed positive sales beats of $151 million, $179 million, and $33 million respectively.

📉 Management expects full-year sales to decline in the mid-single-digit percentage range despite strong individual product performance.

Bullish Signals
  • Biogen (BIIB) obliterated Wall Street's first-quarter expectations with adjusted profit of $3.57 per share, significantly walloping forecasts of $2.96 a share.
  • Earnings jumped 18% year over year, driven by a nearly perfect sales beat sweep for its growth products.
  • Sales of Leqembi grew 74% to $168 million, beating broad expectations of $154 million and achieving 60% market share against Eli Lilly's Kisunla.
  • FDA approval of a new Leqembi regimen using Iqlik for the initiation period could remove dosing advantages held by competitors like Kisunla.
  • Biogen stock jumped 6.1% to close at $194.48, easily clearing its 50-day moving average and approaching a buy point at $202.41.
  • The planned acquisition of Apellis Pharmaceuticals for $5.6 billion is expected to bolster revenue and earnings growth, closing in the second quarter.
  • Spinraza sales topped the Street's call of $372 million with $374 million in revenue, demonstrating continued strength despite shipment timing issues outside the U.S.
  • Sales of Skyclarys, Vumerity, and Qalsody all exceeded analyst expectations, reinforcing confidence in the company's Alzheimer's and rare disease portfolio.
Risk Factors
  • Spinraza sales declined 12% to $374 million despite topping forecasts, attributed to shipment timing outside the U.S.
  • Zurzuvae sales doubled year-over-year but missed bullish analyst forecasts of $64 million, settling at $55 million.
  • Biogen cut its full-year profit forecast by $1 per share due to an in-process research and development charge.
  • The company now expects adjusted profit between $14.25 to $15.25 per share, down from the previous higher expectation.
  • Management acknowledges Leqembi is only a sequential growth driver with commercial concerns regarding its ability to sustain momentum.
  • Biogen still anticipates full-year sales declining by a mid-single-digit percentage despite recent beats.
  • Analysts note that Biogen's leading asset in kidney disease, felzartamab, remains in Phase 3 testing and is not yet generating revenue.
Full Analysis
Biogen (BIIB) reported strong financial results for the first quarter, significantly exceeding Wall Street expectations as most of its growth portfolio delivered a near-perfect sales sweep. The standout performance came from its Alzheimer's treatment, Leqembi, which was developed in partnership with Japan's Eisai; sales surged 74% to $168 million, well above the consensus forecast of $154 million. Analysts noted that while there remains commercial focus on whether this represents a sequential growth driver, Leqembi has captured 60% market share against Eli Lilly's Kisunla, with dosing frequency remaining a key differentiator for patients. Looking forward, Biogen anticipates the FDA may soon approve a new regimen allowing the use of under-the-skin Iqlik for both initiation and maintenance dosing, potentially eliminating the main advantage of competing treatments. Financially, Biogen generated adjusted earnings per share of $3.57, substantially surpassing analyst forecasts of $2.96, though this figure includes a $0.20 charge related to in-process research and development (IPR&D). Consequently, the company reduced its full-year adjusted profit guidance by that amount, now projecting a range of $14.25 to $15.25 per share with IPR&D charges expected to impact earnings by approximately $1 later this year. Total first-quarter sales reached $2.48 billion, representing a 2% increase on an as-reported basis despite a 2% decline when excluding exchange rate impacts; however, this volume still exceeded the analyst projection of $2.25 billion. Despite expecting a mid-single-digit decline in full-year sales overall, CEO Christopher Viehbacher highlighted the anticipated revenue and earnings growth from the recent acquisition of Apellis Pharmaceuticals for $5.6 billion, which is expected to close in the second quarter. Beyond Leqembi, Biogen saw positive results across several key therapeutic areas, with Skyclarys generating $151 million, Vumerity bringing in $179 million, and Qalsody contributing $33 million, all figures that topped market expectations. Spinraza, the company's largest revenue generator, recorded $374 million in sales for the quarter; while this represented a 12% decline, it still met the Street's forecast of $372 million. The reported slump in Spinraza sales was attributed primarily to the timing of shipments outside the United States rather than a lack of product demand. In contrast, Zurzuvae, a partnered asset for treating postpartum depression, experienced mixed results with sales doubling year over year to $55 million but missing more bullish forecasts of $64 million. The market reacted positively to the news, with Biogen shares jumping 6.1% to close at $194.48 during regular trading hours on Wednesday.