Biogen on Wednesday cut its annual profit forecast, which slipped below Wall Street expectations, due to rising costs from the recent acquisition of Reata Pharmaceuticals and the launch of its Alzheimer's treatment Leqembi.
To drive future growth, the drugmaker is leaning on newer products including Leqembi, postpartum depression drug Zurzuvae and the rare disease treatments acquired through its $6.5 billion buyout of Reata.
The costs associated with the deal, however, pushed up Biogen's costs and expenses to $2.67 billion, more than double from a year ago.
Still, the company beat market expectations for profit in the third quarter, helped by strong sales for its rare muscle-wasting disorder drug Spinraza, sending its shares up about 1.4% in premarket trading.
"We now have the elements to grow sustainably so our focus is no longer on doing anything of significance in M&A at least for the time being," CEO Christopher Viehbacher said on a media call.
Since he was hired a year ago, Viehbacher has led efforts to cut expenses and help Biogen recover from its missteps around the controversial Alzheimer's drug Aduhelm that never gained traction.
Spinraza sales of $448.2 million beat estimates of $433 million for the quarter.
The drugmaker expects full-year adjusted profit per share in the range of $14.50 to $15.00 compared with $15 to $16 forecast previously. Analysts were expecting $15.26.
On an adjusted basis, Biogen earned $4.36 per share, beating analysts' average estimate of $3.97, according to LSEG data.
https://finance.yahoo.com/news/biogen-cuts-annual-profit-forecast-120304410.html
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