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Biogen lifts 2024 profit forecast on cost cuts, drug launches
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Biogen lifts 2024 profit forecast on cost cuts, drug launches
Aug 1, 2024 4:56 AM

Aug 1 (Reuters) - Biogen lifted its full-year

earnings forecast on Thursday, as the launch of new treatments

and cost-cutting program are expected to make up for falling

sales of its older multiple sclerosis medicines.

The drugmaker has cut jobs, bolstered its pipeline for rare

disease medicines through takeover deals and unveiled new

products, such as Alzheimer's disease drug Leqembi, as part of a

plan to return to growth.

Biogen also said on Thursday it would retain its biosimilars

business, for which it had been exploring options, including a

sale, since CEO Christopher Viehbacher took the helm in 2022.

Sales of Leqembi, which it sells with Eisai ( ESALF ), came

in at $40 million for the second quarter ended June 30. Wall

Street consensus was at $30-$33 million, according to brokerage

Jefferies.

Leqembi sales in the United States have been slow to take

off due to requirements such as additional diagnostic tests,

twice-monthly infusions and regular brain scans.

In a fresh blow to the companies, the drug's application was

rejected in the EU last week.

Revenue for the quarter came in at $2.47 billion, compared

with LSEG estimates of $2.38 billion.

Sales of spinal muscular atrophy drug Spinraza, which is

competing with rival drugs made by Roche and Novartis

, fell 1.8% to $429.1 million, but beat estimates of

$405.24 million.

Skyclarys, used in treating a rare genetic disorder that

causes progressive damage to the nervous system, brought in

sales of $100 million for the quarter. Analysts had expected

$92.06 million.

Sales of multiple sclerosis drugs such as Tecfidera fell

4.9% to $1.15 billion.

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