Biogen boosts profit outlook on 'momentum' for new drugs, but stock dips

By Steve Gelsi

Biogen also beat Wall Street's Q2 adjusted profit estimate, although its net income dropped

Biogen Inc.'s stock fell 2.5% on Thursday after the company reported a lower second-quarter profit and the termination of a joint drug-development program. Biogen also faced downward pressure in the broad market Thursday, which was weighing on drug stocks.

On the plus side, Biogen boosted its earnings outlook and reported stronger-than-expected second-quarter profit and revenue.

Biogen said it's terminating its Antibody Transport Vehicle (ATV) program with Denali Therapeutics (DNLI). The two companies had been working together on treatments for Alzheimer's for about four years. Denali stock fell 2.8%.

For its second-quarter results, Biogen said it's seeing "positive momentum across new product launches," such as its Leqembi Alzheimer's medicine, which had $40 million in sales in the quarter.

Biogen's second-quarter profit fell to $583.6 million, or $4.00 a share, from $591.6 million, or $4.07 a share in the year-ago quarter.

Adjusted second-quarter profit of $5.28 a share came in well ahead of the FactSet consensus estimate of $4.02 a share.

Revenue rose to $2.47 billion from $2.46 billion, ahead of the analyst estimate of $2.39 billion.

Looking ahead, Biogen said it now expects full-year 2024 earnings of $15.75 per share to $16.25 a share, against the analyst estimate of $15.60 a share.

Biogen's stock has fallen 17.6% in 2024, prior to Thursday's moves. That compares to a 15.8% rise by the S&P 500 SPX.

-Steve Gelsi

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08-01-24 1048ET

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