Biogen (NASDAQ:BIIB) delivered an impressive first-quarter earnings report for 2024, surpassing analyst expectations and driving its stock price up by almost 5% during Wednesday’s trading session. This performance stood in contrast to the essentially flat movement of the S&P 500 index.
Key Highlights from the Earnings Report
Biogen recorded $2.29 billion in revenue for the first quarter, marking a 7% decline year-over-year. Product sales dipped by 3%, primarily driven by a 4% decrease in its leading product category, multiple sclerosis. Meanwhile, revenue from other sources experienced a steeper decline of 39%, albeit from a smaller base of $579 million.
However, the bottom line painted a different picture, with Biogen growing its non-GAAP adjusted net income by 8% to $535 million, equivalent to $3.67 per share. Analysts had anticipated lower figures, with expectations averaging $2.31 billion in revenue and $3.43 for adjusted per-share net income.
Strong Performance of Leqembi
Biogen’s Leqembi, the first FDA-approved drug demonstrated to slow the progression of Alzheimer’s disease, showcased robust performance. Sales for Leqembi totaled approximately $19 million for the quarter, nearly doubling from the previous year’s $10 million. This figure exceeded the average analyst estimate of $11 million.
Outlook and Guidance
The company reiterated its guidance for the full year 2024, expecting to achieve an adjusted net profit ranging between $15 to $16 per share. At the midpoint of this range, this represents a 5% increase from the 2023 figure. The consensus analyst estimate aligns closely with Biogen’s guidance at $15.49 per share. Regarding revenue, Biogen anticipates a low-to-mid-single-digit percentage decline for the year, without providing specific figures.
Overall, Biogen’s strong earnings report and optimistic outlook for the remainder of 2024 contributed to the significant uptick in its stock price, reflecting investor confidence in the company’s performance and growth prospects.
Featured Image: Megapixl
