Biogen’s share price fell 4% on Thursday after the company reported first-quarter financial results and increased its full-year earnings guidance. The biotechnology company says financial results were consistent with expectations despite reporting a 24% decline in revenues.
Total revenue came in at $2.69 billion as multiple sclerosis revenue declined 26% year-over-year to $1.69 billion. SPINRAZA revenues were down 8% to $521 million. Biosimilars revenue decreased 6% to $205 million. Biogen (BIIB) reported $410 million in net income, or $2.69 a share.
Despite the revenue slump in the quarter, CEO Michel Vounatsos expects 2021 to be a transformative year.
Vounatsos stated, “With an anticipated regulatory decision for aducanumab in the U.S. and a number of exciting pivotal readouts expected this year in depression, choroideremia, and ALS, we continue to believe that 2021 will be a transformative year for Biogen.”
Biogen has also updated its full-year guidance. 2021 revenue is expected to remain flat compared to previous guidance and average between $10.45 billion and $10.75 billion. Non-GAAP diluted EPS is expected between $17.50 and $19 against previous guidance of between $17.0 and $18.50.
The financial guidance assumes a currency headwind of about $80 million due to the strengthening of the US dollar, and also assumes that Biogen will secure regulatory approval for aducanumab, its candidate drug for Alzheimer’s disease.
Biogen shares are up 6% year-to-date after a 17.56% drop in 2020. (See Biogen stock analysis on TipRanks).
Following the earnings release, JPMorgan’s analyst Cory Kasimov reiterated a Neutral rating with a price target of $269, implying 3.86% upside potential.
Commenting on the earnings, Kasimov said, “it was an uneventful
1Q ahead of what is going to be a VERY eventful 2Q (aducanumab PDUFA of 6/7/21– in case you forgot – as well as Phase 3 zuranolone MDD data)”.
Consensus among analysts is a Moderate Buy based on 10 Buy, 9 Hold, and 3 Sell ratings. The average analyst price target of $307.79 implies 18.84% upside potential to current levels.
BIIB scores an 8 out of 10 on the TipRanks’ Smart Score rating system, implying that the stock is expected to outperform market averages.
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