Biogen stock slumps as Aduhelm costs squeeze fourth-quarter profit
Biogen (BIIB) shares took a hit on Tuesday following the company’s report of its fourth-quarter earnings. The biotech company revealed adjusted earnings of $2.95 per share, falling short of analysts’ expectations of $3.18 per share. Additionally, fourth-quarter sales amounted to $2.39 billion, slightly below the projected $2.47 billion.
One significant factor impacting Biogen’s profits was the costs associated with its Alzheimer’s drug, Aduhelm. These costs had a negative impact of 35 cents on the company’s fourth-quarter profit. In comparison, during the same quarter the previous year, Biogen earned $4.05 per share and reported $2.54 billion in sales.
Looking ahead, Biogen has provided guidance for the year with earnings per share projected to be between $15 and $16. The company also anticipates a low- to mid-single digit percentage decrease in revenue. Market analysts forecasted adjusted earnings of $15.81 per share and $9.71 billion in sales.
Biogen’s struggles with its Alzheimer’s drug have been well-documented. Aduhelm faced scrutiny from the FDA due to concerns over its effectiveness and high price tag. Despite receiving FDA approval, the drug’s future remains uncertain.
Investors reacted to the news of Biogen’s earnings, causing the stock to slump in early trading. Further developments in the company’s Alzheimer’s drug pipeline will be closely watched as Biogen navigates these challenges.
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