Biogen (NASDAQ:BIIB) is a long way from its $468.55 peak set earlier this year. Speculators overpaid for Biogen when the company announced that the Food and Drug Administration approved its Alzheimer’s drug. In the months that followed, the controversial FDA approval proved damaging.
Rumors circulated that demand for the Alzheimer’s drug, Aduhelm, is so low that Biogen will need to cut prices. How badly did Aduhelm sales perform in the last quarter?
Biogen Raises Outlook
Biogen posted a non-GAAP EPS of $4.77. Revenue fell by 17.8% Y/Y to $2.78 billion. For the year, the firm expects revenue of $10.8 billion to $10.9 billion. EPS of up to $19.35 is ahead of the $17.50 - $19.00 EPS prior guidance.
Biogen posted minimal sales upside from Aduhelm. Weak sales of Tecfidera and Rituxan did not hurt Biogen’s higher guidance. CEO Michel Vounatsos said that despite the slow uptake of Aduhelm, the company believes in its long-term potential.
Investors should not believe that Aduhelm sales will increase. The drug is controversial and expensive. Cassava (SAVA) has two active clinical trials. This could compete with Biogen’s offering.
Aduhelm’s price is too high. Patients get three shots annually at a $56,000 cost. Insurance companies will not cover costs at those levels.
Biogen may need to give the drug away. It will have more data points to prove that the treatment works. That would increase confidence and improve sales.
