Biogen Announces Additional Cost Cutting Initiatives, Chops Certain Stroke, Gene Therapy Programs

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Biogen Inc BIIB posted Q1 FY23 sales of $2.46 billion, beating the consensus of $2.34 billion, down 3% Y/Y and flat% at constant currency (CC).
Multiple sclerosis revenue of $1.125 billion decreased by 19% (down 17% CC). Multiple sclerosis drug Tysabri sales are down to $472.8 million from $520.8 million.
Spinraza's revenue of $443.3 million decreased by 6.2% in actual currency (decreased by 2.5% at CC).
Biosimilars' revenue of $192.4 million decreased by 1%.
Adjusted EPS of $3.40 decreased by 6% and beat the consensus of $3.88.
Biogen announced that it is pausing the initiation of Phase 2b study for BIIB131 (TMS-007) for acute ischemic stroke and is assessing whether to initiate this study.
In addition, Biogen will discontinue work on BIIB132 (ION260) in spinocerebellar ataxia type 3, an Ionis Pharmaceuticals Inc IONS-partnered antisense oligonucleotide, in the Phase 1/2 study.
The company also said it "exited ophthalmology research" and is "re-focusing investment in gene therapy to advance fundamental technology."
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The company initiated an additional cost optimization program to align the cost base with expected revenue while also investing for growth – further information to be communicated at the second quarter 2023 earnings release.
Guidance: Biogen reiterates FY23 sales to decline by a mid-single-digit percentage versus the reported FY22.
The company expects adjusted EPS of $15.00-$16.00 compared to the consensus of $15.72.
Price Action: BIIB shares are down 0.12% at $292.62 on the last check Tuesday.