UPDATE 1-Biogen expects to return to profit growth this year
(Adds CEO comment in paragraph 6)
By Manas Mishra
Feb 13 (Reuters) - Biogen forecast a return to annual profit growth following cost cuts and a pick up in sales of its newer drugs, but the company's shares fell 5% in premarket trading on Tuesday after missing Wall Street estimates for fourth-quarter results.
Since CEO Christopher Viehbacher took the helm at Biogen in late 2022, the drugmaker has cut jobs, launched a review of its biosimilars business and made a $6.5-billion deal for rare disease drugmaker Reata to return the company to growth.
It is also counting on newer drugs such as Alzheimer's drug Leqembi, developed with partner Eisai, to drive growth for the next few years.
Biogen forecast a 2024 profit between $15 and $16 per share, on an adjusted basis, compared to LSEG estimates of $15.65 per share. The midpoint of the forecast range represents an increase of 5%.
However, product sales are expected to be flat in 2024. The company expects Leqembi sales to grow gradually after it gained full approval last year.
"We've had several years of declining sales and profit, which is not unusual when you deal with patent expiries. The question is how you return to growth," CEO Viehbacher said.
Biogen missed Wall Street estimates for fourth-quarter profit following its decision last month to return the rights for Alzheimer's disease drug Aduhelm and on weak demand for multiple sclerosis drug Tecfidera and spinal muscular atrophy treatment Spinraza.
The company recorded a 35-cent hit to its fourth-quarter profit from Aduhelm exit costs.
In the fourth quarter, sales of Biogen's once-blockbuster drug Tecfidera, which is facing competition from a cheaper generic rival, fell 17.8% to $244.3 million, below LSEG estimates of $252.3 million.
The company reported an adjusted profit of $2.95 per share, compared to analysts' estimates of $3.18 per share.
Revenue fell 6.2% to $2.39 billion, missing estimates of $2.47 billion. (Reporting by Sriparna Roy and Manas Mishra in Bengaluru; Editing by Shounak Dasgupta)
