Biogen Inc reported just $1 million in quarterly sales of its Alzheimer's disease drug and forecast 2022 earnings well below analysts' estimates, following a proposal last month by the U.S. Medicare regulator to limit coverage of drug.
The drugmaker's shares fell 3% before the opening bell as the company also said it expects "minimal" sales from the treatment, Aduhelm, which was once touted as a potential blockbuster but now faces weak uptake after its controversial approval and a lack of clarity over coverage.
Analysts' on average had expected $2.8 million in fourth-quarter sales of Aduhelm.
The U.S. Centers for Medicaid and Medicare Services (CMS) in January proposed to severely restrict coverage for Alzheimer's drugs including Aduhelm to patients taking part in approved clinical trials. A final decision is expected in April.
Biogen, which has already launched a $500 million cost-cutting program, warned that if the final coverage decision was not broader than the current proposal it could to be forced to cut more costs.
The company said it expects full-year adjusted profit of $14.25-$16.00 per share, compared with the Refinitiv IBES estimate of $18.82 per share.
In the fourth quarter, Biogen earned $3.39 per share, edging past analysts' estimates by a cent.
Sales of multiple sclerosis drug Tysabri rose nearly 8% to $512.7 million, beating estimates of $488.19 million.
https://www.yahoo.com/news/biogen-2022-profit-forecast-misses-124239451.html
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