Biogen Tumbles as Drug Closeout Costs, Multiple Sclerosis Medicine Sales Weigh on Profit

Biogen (BIIB) shares fell over 5% in early trading Tuesday after the biotech firm posted weaker-than-expected results, weighed down by costs for discontinuing a controversial Alzheimer’s drug, Aduhelm, and slowing sales of multiple sclerosis medicines.

The company reported fourth quarter earnings per share (EPS) of $2.95, with revenue falling 6% from a year ago to $2.39 billion. Both missed estimates.

Biogen said that EPS was negatively impacted by 35 cents, related to previously-disclosed closeout expenses for Aduhelm. Earlier this month, the company announced that it was discontinuing the development and commercialization of the treatment, which faced criticism about its effectiveness and costs. Biogen noted that it was “reprioritizing resources to focus instead on Leqembi, an Alzheimer’s drug it is producing in collaboration with Japan’s Eisai.

Sales of Biogen’s multiple sclerosis treatments, the firm’s biggest revenue producer, slumped 8% to $1.17 billion as they faced stiffer competition. 

CEO Christopher Viehbacher said that the steps the company has taken to add new drugs, allocate of capital, and reprioritize its pipeline mean “we are now well positioned to return Biogen to sustainable growth.”

The company said it anticipates full-year EPS for 2024 in a range of $15 to $16, which would be a 5% rise from 2023 at the mid-point.

Biogen shares were down 5.8% at $230.42 per share as of about 11:20 a.m. ET Tuesday. They have lost about one-fifth of their value over the past year.