Biogen Beats on Q3 Earnings & Sales, Raises '24 EPS View

Core Insights - Biogen reported third-quarter 2024 adjusted earnings per share (EPS) of $4.08, exceeding the Zacks Consensus Estimate of $3.77, although earnings declined 6% year over year on a reported basis, remaining flat on a constant-currency basis [1] - Total revenues for the quarter were $2.47 billion, down 3% year over year on both reported and constant-currency basis, attributed to lower sales of key drugs, but still beating the Zacks Consensus Estimate of $2.44 billion [2] Financial Performance - Product sales in the quarter were $1.77 billion, a decrease of 2% year over year, while revenues from anti-CD20 therapeutic programs increased by 6% to $446.2 million [3] - Contract manufacturing and royalty revenues fell 19% year over year to $250.2 million, which includes Biogen's share of net product revenues from Alzheimer's drug Leqembi [4] - Biogen's MS revenues totaled $1.05 billion, down 9% year over year due to generic competition for Tecfidera and rising competitive pressure in the MS market [7] Drug Sales Overview - Tecfidera sales declined 2.8% to $232.8 million, while Vumerity recorded $158.1 million in sales, down 4.5% year over year [8] - Tysabri sales decreased 11% year over year to $406.1 million, and combined interferon revenues fell 14.5% to $237.5 million [9] - Sales of Spinraza declined 15% to $381.4 million, while the newly acquired Skyclarys generated $102.3 million in sales [10] New Product Developments - Qalsody, launched for ALS, recorded sales of $11.1 million, and Zurzuvae for postpartum depression generated $22 million in sales [11][12] - Biogen announced it would not pursue further development of Zurzuvae for major depressive disorder after the FDA refused approval last year [14] Cost Management and Guidance - Adjusted R&D expenses decreased 9% year over year to $491 million, while adjusted selling, general, and administrative expenses rose 1% to $556 million [16] - The company maintained its guidance for total revenues in 2024, expecting a low single-digit percentage decline from 2023 levels, with core pharmaceutical revenues expected to be roughly flat year over year [18] - Adjusted earnings guidance was raised to $16.10-$16.60, implying growth of approximately 11% at the midpoint [19] Market Position - Biogen's operating income in 2024 is expected to grow at a high-teen percentage, with an anticipated increase in operating margin by a mid-single-digit percentage point [20] - Biogen currently holds a Zacks Rank 3 (Hold), while ANI Pharmaceuticals is noted as a better-ranked stock in the biotech sector with a Zacks Rank 2 (Buy) [21]