By Kamal Choudhury and Mariam Sunny
Feb 6 (Reuters) – Biogen forecast annual profit above Wall Street estimates on Friday, banking on demand for newer medicines and strength of its promising late-stage pipeline to return to revenue growth as older multiple sclerosis drugs battle pressure from cheaper versions.
Shares of the drugmaker rose nearly 6% in afternoon trading.
The company’s return to revenue growth could be tied to the potential 2028 launch of closely watched experimental treatments for lupus and kidney transplant rejection, Chief Executive Christopher Viehbacher said on a call with analysts.
There is a lack of clear, convincing data for much of Biogen’s pipeline, Cantor analyst Eric Schmidt said, adding that it is difficult to predict “when/if Biogen can turn the corner in terms of revenue growth.”
Biogen has also been expanding their pipeline of immunology and rare disease medicines through acquisitions and partnerships.
It is seeking potential takeover targets valued at $5 billion to $6 billion that have advanced late-stage assets or products in early commercialization, Viehbacher said.
The U.S. drugmaker expects adjusted profit between $15.25 and $16.25 per share for 2026, above the analysts’ average estimate of $14.92, according to LSEG-compiled data.
U.S. sales of Leqembi, which it sells with Japan’s Eisai, rose 56% to $78 million in the quarter, though uptake has been gradual amid concerns over cost, efficacy and side effects.
Biogen is also counting on the weekly subcutaneous maintenance injection of Leqembi, approved last year, an easier-to-use treatment option following an initial intravenous infusion.
Leqembi holds more than 60% of the anti-amyloid treatment market by total prescriptions, Viehbacher said, adding that the overall market for such therapies has more than doubled and could accelerate next year.
Biogen posted better-than-expected quarterly results, with adjusted earnings of $1.99 per share and sales of $2.3 billion, both topping expectations.
(Reporting by Kamal Choudhury and Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila and Alan Barona)
Comments