Biogen Q2 Earnings Tops Expectations, Shift Resources To Higher Value Area(s), Layoff 1K Staff

Biogen Inc BIIB posted Q2 FY23 sales of $2.46 billion, beating the consensus of $2.37 billion, down 5% Y/Y and 3% at constant currency (CC).

Multiple sclerosis revenue of $1.21 billion decreased by 15% (down 14% CC). Multiple sclerosis drug Tysabri sales are down to $483.1 million from $516.2 million.

Spinraza's revenue of $437.1 million compared to $431.1 million a year ago.

Adjusted EPS of $4.02 decreased by 23, beating the consensus of $3.77.

Also Read: Expanded Medicare Coverage For Biogen-Eisai's Leqembi Signals a Turning Point in Alzheimer's Treatment: Analysts.

Christopher Viehbacher, President & CEO, said, "We have taken a bottom-up view to shift our resources... While we will be making significant investments in our newly prioritized pipeline and new product launches, we will also need to invest less in other areas which are no longer growing."

The company said the new "Fit for Growth" program is expected to generate approximately $1 billion in gross operating expense savings, approximately $300 million of which will be reinvested into product launches and R&D programs, resulting in approximately $700 million in net operating expense savings by 2025 – the program includes net headcount reduction of approximately 1,000.

Biogen said its R&D pipeline prioritization is substantially complete.

The company had said in its Q1 earnings release that it would pause or discontinue studies of some experimental drugs to focus on more lucrative options.

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 $15.43.

Price Action: BIIB shares are trading higher by 1.44% at $281.00 premarket on the last check Tuesday.