Biogen Q1 2024 results surpass expectation despite revenue decline

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on Apr 24, 2024
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  • Biogen's Q1 2024 revenue of $2.29B missed by $30M, but GAAP operating income grew by 10%.
  • New product launches like LEQEMBI and SKYCLARYS showed promising uptake and revenue growth.
  • Biogen reaffirmed its 2024 guidance, expecting EPS growth and stable core pharmaceutical revenue.

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Biogen Inc. (NASDAQ: BIIB), a leading biotechnology company, has released its Q1 2024 financial results, showcasing resilience and strategic growth despite facing revenue challenges.

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In the first quarter of 2024, Biogen reported a revenue of $2.29 billion, which slightly missed expectations by $30 million.

However, the company demonstrated a meaningful improvement in both gross and operating margins, attributed to its Fit for Growth program and R&D prioritization. Notably, GAAP operating income grew by 10%, and Non-GAAP operating income surged by 24% despite a 7% decrease in total revenue.

New product launches show strong performance

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Biogen’s new product launches showcased promising performance during the first quarter of 2024.

LEQEMBI, a key product for the company, witnessed accelerated uptake with global in-market sales reaching approximately $19 million, nearly tripling the figures from the previous quarter.

Moreover, patients on therapy increased nearly 2.5 times since the end of 2023, indicating growing traction in the market.

SKYCLARYS, another new product, generated global revenue of $78 million during the quarter, with successful launches in both the U.S. and E.U.

Additionally, the launch of ZURZUVAE showed encouraging early trends, reflecting Biogen’s commitment to addressing unmet medical needs.

Biogen full year 2024 guidance

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Despite revenue challenges, Biogen maintained a strong financial position in the first quarter of 2024.

The company reported a net cash flow from operations of $553 million and free cash flow of $507 million. As of March 31, 2024, Biogen had cash, cash equivalents, and marketable securities totaling approximately $1.1 billion.

Looking ahead, Biogen reaffirmed its full-year 2024 financial guidance, expecting Non-GAAP diluted EPS in the range of $15.00 to $16.00, representing a growth of approximately 5% at the mid-point compared to the previous year.

The company anticipates total revenue to decline by a low- to mid-single-digit percentage, with core pharmaceutical revenue expected to remain relatively flat compared to 2023.

Operating income is projected to grow at a low-double-digit percentage, driven by improved cost of sales as a percentage of revenue and lower operating expenses due to the Fit for Growth program.

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