What Awaits Biogen (BIIB) in Q2 Earnings Post Leqembi Setback?

Core Viewpoint - Biogen faces a significant setback as the European Medicines Agency's CHMP issued a negative opinion on the marketing approval for its Alzheimer's therapy, Leqembi, due to safety concerns related to brain swelling [1] Financial Performance - Biogen's stock has declined 18.4% year-to-date, contrasting with a 0.5% increase in the industry [2] - The company experienced a negative earnings surprise of 6.38% in the last reported quarter [2] Sales and Revenue Insights - Sales of Biogen's multiple sclerosis drugs, Tecfidera and Tysabri, are expected to decline due to increased competition and the introduction of generic versions [3] - The Zacks Consensus Estimate for Tecfidera sales is $236 million, while the estimate for Tysabri is $420 million [3] - Sales of Vumerity, another MS drug, are anticipated to rise, with estimates at $154 million [3] - Spinraza's sales growth is expected to be impacted by competition and shipment timing, with estimates at $403 million [5] - Sales of the newly launched rare disease drug Skyclarys are expected to improve from the first quarter [5] - Contract manufacturing and royalty revenues are projected to decline, including Biogen's share from the collaboration with Eisai for Leqembi [6] Product Developments - Leqembi has been launched in the U.S., Japan, and China, with recent approvals in Israel, Hong Kong, and South Korea [1] - The European Commission granted marketing approval to Qalsody for treating ALS in Europe, with encouraging launch uptake in the U.S. [7] Cost Management - Lower cost of sales and operating costs due to cost-saving initiatives are expected to positively impact profits [7] Earnings Expectations - Biogen's Earnings ESP is -1.09%, indicating a lower likelihood of an earnings beat compared to the Zacks Consensus Estimate of $4.00 [9]