Biogen (NASDAQ:BIIB) posted third-quarter results today that beat the consensus forecast on Wall Street — but cut its outlook for the rest of the year, citing the emergence of generic versions of its Tecfidera drug for multiple sclerosis.
The Cambridge, Mass.–based neurological therapies company reported profits of $702 million, or $4.46 per share, on sales of $3.376 billion for the three months ended Sept. 30, 2020, for a bottom-line drop of 55% and a sales decline of 6% compared with Q3 2019.
Adjusted to exclude one-time items, earnings per share were $8.84, 71¢ ahead of The Street, where analysts were looking EPS of $8.13 on sales of $3.35 billion.
“In the third quarter, Biogen continued to execute on its strategy and delivered solid performance, although we began to face the launch of multiple generics of Tecfidera in the U.S.,” said Biogen CEO Michel Vounatsos said in a news release.
Biogen faces a potentially crucial FDA advisory committee meeting on Nov. 6 related to aducanumab, an Alzheimer’s disease treatment candidate. “We have continued to allocate capital to create the opportunity for long-term shareholder value, including business development with our new collaboration in Parkinson’s disease,” Vounatsos added.
Biogen expects to log adjusted EPS of $32.50–$33.50 this year, down from the prior guidance range of $34–$36. It cut its top-line outlook to approximately $13.2–$13.4 billion, compared to the prior guidance range of $13.8-$14.2 billion.
Investors reacted by sending BIIB shares up 0.67% to $268.91 apiece by the close of trading today.