Why Is Biogen (BIIB) Up 7.7% Since Last Earnings Report?

Earnings Performance - Biogen reported Q1 2024 adjusted EPS of $3.67, beating the Zacks Consensus Estimate of $3.45, representing an 8% YoY increase driven by cost savings and margin improvements [2] - Total revenues were $2.29 billion, down 7% YoY on both reported and constant-currency basis, missing the Zacks Consensus Estimate of $2.32 billion [2] - Product sales declined 3% YoY to $1.71 billion, with anti-CD20 therapeutic programs revenues down 1% to $394.0 million [2] Key Product Performance - MS revenues declined 4% YoY to $1.08 billion due to generic competition for Tecfidera and rising competitive pressure [4] - Tecfidera sales declined 7.4% to $254.3 million but beat estimates, with EU market protection extended until February 2025 [4] - Vumerity sales increased 18% to $127.5 million, while Tysabri sales declined 9% to $431.3 million [5] - Spinraza sales declined 23% to $341.3 million, with U.S. sales up 1% but ex-U.S. sales down 35% [7] - Skyclarys generated $78.0 million in sales, with 1,100 patients on therapy in the U.S. and 300 in Europe [8] New Product Launches - Leqembi sales nearly tripled sequentially to $19 million in Q1 2024, with patient numbers increasing 2.5 times since 2023-end [3] - Biogen plans to expand its U.S. salesforce by 30% to promote Leqembi as patient volume accelerates [3] - Qalsody recorded $4.6 million in sales, showing encouraging uptake for ALS treatment [8] Cost Management - R&D expenses declined 22% YoY to $447 million, while adjusted SG&A expenses declined 6% to $569 million [10] - Collaboration profit-sharing was a net expense of $66 million, including $61 million related to biosimilar collaboration with Samsung Bioepis [10] Financial Position - No shares were repurchased in Q1 2024, with $2.1 billion remaining under the $5 billion share buyback plan authorized in October 2020 [11] 2024 Guidance - Total revenues expected to decline by low-to mid-single-digit percentage in 2024 [12] - Core pharmaceutical revenues expected to be flat in 2024, with MS revenue declines offset by new product growth [13] - Adjusted EPS expected in the range of $15.00 to $16.00, implying ~5% growth at midpoint [13] - Combined R&D and SG&A expenses expected to be ~$4.3 billion in 2024 [13] - Operating income expected to grow at low-double-digit percentage, with operating margin increasing by mid-single-digit percentage points [13]