Biogen's Growth Drivers Hit Third-Quarter Snags; Why This Isn't A 'Fundamental' Problem

Core Insights - Biogen's key growth drivers, Leqembi and Skyclarys, faced challenges in Q3, impacting stock performance [1][2] - Despite these challenges, Biogen reported better-than-expected sales and earnings, driven by older multiple sclerosis treatments [4][5] Financial Performance - Biogen reported earnings of $4.81 per share on $2.54 billion in sales, exceeding analyst forecasts of $3.88 and $2.34 billion respectively [4] - Year-over-year, earnings increased by 18% and sales rose by 3%, with a 2% increase in constant currency [4] - Sales of Skyclarys reached $133 million, slightly below expectations, while Leqembi generated $69 million in U.S. sales, also below projections [2][3] Product Performance - Tysabri sales rose 6% to $431.8 million, surpassing forecasts, while Tecfidera sales fell 28% to $168 million but still exceeded projections [5] - Revenue from Spinraza was in line with expectations at $374 million, reflecting a 2% decline [6] Guidance and Outlook - Biogen lowered its adjusted earnings outlook to $14.50 to $15 per share, accounting for a $1.25 per-share negative impact from business development transactions [7] - The company raised its sales outlook, now expecting flat to 1% growth in constant currency for the year [7][8] - The new earnings guidance fell short of analysts' expectations of $15.76 per share, while sales projections align with Biogen's expectations of $9.69 billion [8]