Biogen beats estimates on cost cuts and new drugs like Leqembi, but profit outlook falls short

Core Insights - Biogen reported fourth-quarter revenue and profit that exceeded expectations, driven by cost-cutting measures and growth from new products, particularly the Alzheimer's treatment Leqembi [1][6] - However, the company's guidance for 2025 fell short of Wall Street expectations, with an adjusted earnings outlook of $15.25 to $16.25 per share compared to the anticipated $16.34 per share [2] Financial Performance - Biogen's fourth-quarter sales reached $2.46 billion, reflecting a 3% increase from the previous year [5] - The company posted a net income of $266.8 million, or $1.83 per share, compared to $249.7 million, or $1.71 per share, in the same quarter last year [6] - Adjusted earnings per share were reported at $3.44, surpassing the expected $3.35 per share [9] Product Performance - Leqembi generated $87 million in revenue for the fourth quarter, including $50 million from the U.S., exceeding analysts' expectations of $67 million [4][5] - Biogen anticipates a "mid-single digit" percentage decline in revenue for 2025 compared to 2024, primarily due to falling sales of multiple sclerosis products facing generic competition [3] Strategic Initiatives - The company initiated a cost-cutting program in 2023, aiming for $1 billion in gross savings, or $800 million in net savings, by the end of 2025 [7] - Royalty Pharma announced a $250 million agreement to fund research and development for litifilimab, a drug in Biogen's pipeline for lupus treatment [8]