Alzheimer's and Depression Drugs Remain Biogen's Top Priorities

Market expectations were exceeded by Biogen's quarterly earnings on Wednesday.

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According to Trade Algo consensus estimates, Sentry International had non-GAAP earnings of $4.05 per share for the fourth quarter of 2022, which was better than the $3.48 consensus estimate of the company.

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As reported by Trade Algo, the company generated revenues for the quarter of $2.5 billion, which exceeded the $2.4 billion consensus estimate.

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It was also announced that the company expects to record non-GAAP earnings between $15 and $16 per share for the fiscal year of 2023, as well as revenue of between $55 and $625 million. The FactSet research firm predicts the company will earn $15.80 a share for the year, based on a consensus estimate of analysts.

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As of premarket trading, shares of Biogen BIIB -2.68% were up 1.7%.

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As Leqembi, a drug to treat Alzheimer's disease, and zuranaolone, a drug to treat depression, make their way to the market, investors are closely monitoring them.

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The company's remaining offerings face intense competition, which means both of these drugs must be launched this year. In the past 12 months, Biogen stock (BIIB) has increased by 33% but has decreased by 30% since June 2021.

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Early this month, Eisai (ESALY), a Japanese drugmaker that Biogen partnered with on Leqembi, announced that infusions in patients began on February 3. In the event the CMMS decides not to cover the drug, full commercialization is unlikely. Unless that's resolved before the second half of this year, it's unlikely to happen.

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According to Biogen, Leqembi sales will be "modest in the market" this year, and commercialization expenses will exceed the drug's revenue.

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If the Food and Drug Administration approves Zuranolone as a treatment for major depressive disorder and postpartum depression, Biogen and Sage Therapeutics (SAGE) are expected to launch it in the third quarter of this year.

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Biogen's other assets are also fighting for their survival, in addition to the two programs mentioned above. Christopher Viehbacher, the new CEO of Biogen, said, at a conference on January 24, that the company's multiple sclerosis franchise, which has been its pillar for years, is "melting like an iceberg," according to Viehbacher.

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It is estimated that Biogen will sell $5.4 billion of its multiple sclerosis drugs in 2022, down from $6 billion in 2021, according to the company. There was a decrease of $1.8 billion in sales of Spinraza, a drug that is used to treat spinal muscular atrophy, for the year compared to the year before.

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According to Viehbacher, at the conference, as well as through the company's internal drug-development pipeline, there is now a focus on starting to restore growth to the company, both via the launch of Leqembi and Zuranolone, as well as through its internal drug development pipeline.

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In order to put Biogen on a sustainable growth trajectory, we are working to execute two key near-term opportunities with LEQEMBI in Alzheimer's disease and zuranolone in depression. As Viehbacher stated in his statement on Wednesday, his company is actively working to diversify its product portfolio, and seek opportunities to expand organically and externally, such as by forming new partnerships with other companies,” he added. It is my firm belief that we have laid the foundations for Biogen to build on a secure and successful future."

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On Wednesday, Viehbacher made his first earnings announcement since becoming president and CEO of the company. He took over as CEO of the agency on Nov. 14 when Michel Vounastos stepped down.

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There will be a conference call held by the company at 8 a.m. ET on Wednesday in order to discuss the progress that the company has made.