Biogen Projects Strong 2026 Profit Despite Revenue Dip

Core Financial Projections

Biogen has forecasted its 2026 adjusted profit to be between $15.25 and $16.25 per share, surpassing Wall Street's average estimate of $14.92. This optimistic profit outlook follows a strong fourth quarter where the company posted an adjusted earnings per share of $1.99 on $2.3 billion in revenue, exceeding market expectations.

Performance Overview

The company's positive forecast is driven by the growing demand for its newer medicines, particularly the Alzheimer’s treatment Leqembi, which saw sales rise 54% to $134 million. However, this growth is offset by declining sales from its established multiple sclerosis therapies, like Tecfidera, which experienced a 14% drop in sales to $917 million due to competition from generic versions.

Market Impact and Outlook

Biogen anticipates a mid-single-digit percentage decline in total revenue year-on-year, highlighting a strategic shift towards its new drug portfolio. The uptake of Leqembi, along with contributions from rare-disease drug Skyclarys and postpartum depression treatment Zurzuvae, is critical to navigating this transition. Ongoing cost-cutting measures also contribute to the stronger profit guidance.

Summary

Biogen is in a pivotal phase, leveraging its innovative pipeline to counteract revenue erosion from its legacy products. The market will closely monitor the sales performance of Leqembi and the company's ability to manage its transition effectively while maintaining profitability.

FAQ

Q: What is Biogen's profit forecast for 2026?
A: Biogen forecasts an adjusted profit between $15.25 and $16.25 per share for 2026, which is above analysts' expectations.

Q: How are sales of the Alzheimer’s drug Leqembi?
A: Global sales of Leqembi increased by 54% to about $134 million in the fourth quarter, slightly ahead of the Wall Street consensus.

Q: Why is Biogen's total revenue expected to decline?
A: The decline is anticipated due to continued pressure on sales of its older multiple sclerosis drugs, which face competition from cheaper generic alternatives.

Source: Reuters via Investing.com