BIIB - Biogen's Q4 Earnings Disappoint Amidst Strategic Challenges (Rating Downgrade)

2024-02-14 02:55:38 ET

Summary

• Q4 earnings underwhelmed, with misses on EPS and revenue; Leqembi and Zurzuvae's performances were particularly disappointing.
• Biogen's significant investments in Alzheimer's treatments, especially Leqembi, have yet to yield substantial returns.
• Skyclarys emerges as a potential blockbuster, contrasting with the underperforming MS portfolio and Zurzuvae for PPD.
• Recommendation: Sell BIIB due to revenue downturns, strategic challenges in Alzheimer's and MS markets, and underwhelming drug performances.

At a Glance

On Tuesday, Biogen ( BIIB ) reported Q4 earnings. The numbers disappointed the market and fell short of analyst estimates. Per Seeking Alpha, Q4 EPS of $2.95 missed by $0.23 and revenue of $2.4B (-5.5% Y/Y) missed by $60M. Biogen's Alzheimer's disease [AD] biologic, Leqembi, continues to underperform. Their newer venture, Zurzuvae, for postpartum depression [PPD], in partnership with Sage Therapeutics ( SAGE ), produced a meager $2 million in revenue for its first full quarter on the market. The company intends to streamline operations to save $1 billion this year and has highlighted potential growth opportunities such as Skyclarys for the rare disease Friedreich's ataxia....

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