Biogen Inc misses estimates for profit in the fiscal fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 3, 2021
Updated: Feb 4, 2021
  • Biogen Inc misses estimates for profit in the fiscal fourth quarter.
  • The biotech firm's revenue comes in better than expected in Q4.
  • Biogen’s Aducanumab drug to undergo an additional FDA review.

Biogen Inc. (NASDAQ: BIIB) said on Wednesday that its profit in the fiscal fourth quarter came in weaker than expected. Its revenue, however, topped analysts’ estimates in Q4. As per Biogen, it spent more in the recent quarter on research and development.  

Biogen was reported about 2.5% down in premarket trading on Wednesday and slid another 2.5% later in the day. The stock is now trading at £193.35 per share versus £173.36 per share in November. If you want to invest in the stock market, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.  

Biogen’s fourth-quarter financial results versus analysts’ estimates

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Biogen said that its profit in the fourth quarter printed at £262.62 million. In the same quarter last year, it had reported a sharply higher £1.06 billion of profit. The pharmaceutical firm earned £1.70 per share in the recent quarter versus the year-ago figure of £5.93 per share.

On an adjusted basis, the Cambridge-based company earned £3.36 per share in the quarter that concluded on 31st December. At £2.09 billion, Biogen’s revenue in Q4 saw a 22.3% annualised decline. In the prior quarter (Q3), Biogen had seen a 55% decline in earnings, as per the report published in October 2020.

According to FactSet, experts had forecast the company to post £2.05 billion of revenue in the fourth quarter. Their estimate for adjusted per-share earnings stood at a higher £3.51. Biogen valued its research and development costs at £1.27 billion versus £507.56 million last year.

In separate news from the United States, pharmaceutical giant Pfizer also reported its financial results for the fiscal fourth quarter earlier this week.

Biogen’s Aducanumab drug to undergo an additional review by the U.S. FDA

In an announcement last week, Biogen said that its candidate drug for Alzheimer’s disease will undergo an additional review by the United States Food and Drug Administration (FDA) that is likely to span over three months.

Originally, a panel of experts recommended the agency to reject the drug in November. The U.S. FDA is now scheduled to announce its verdict on Aducanumab on 7th June.

Biogen performed fairly upbeat in the stock market last year with an annual gain of more than 15%. At the time of writing, the American multinational biotechnology company has a market cap of £29.75 billion and a price to earnings ratio of 8.72.

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