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Biogen beats Q2 earnings expectations, stock dips

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Yahoo Finance Live anchors discuss second-quarter earnings for Biogen.

Video Transcript

- Crowd favorite Biogen-- you're seeing Biogen shares on that screen right there. Shares down a little bit in the premarket. And I'm surprised to see this reaction, Julie. I'll go to you here.

The company is raising its full year profit outlook. We haven't gotten a lot of companies doing that in the early earnings season. Definitely need to hear that from the banks. But here's a health care company, another one, after, what, UnitedHealth last week also gave an upbeat outlook. So a second consecutive health care play catching a bid and raising their outlook.

- Yeah, I mean, the big setback for Biogen had to do, of course, with its Alzheimer's drug, right, and that the US government was not going to pay for it for Medicare and Medicaid-- or Medicare, I guess, most notably, participants. The company did raise its revenue forecast but not by that much.

Maybe that's an area of a little bit of a disappointment. It's going to as much as 10.1 billion. The prior upper end was $10 billion.

So like, that's not much of an increase. It looks like the earnings per share forecast went up a little bit more. So you know, unclear what exactly is going on here in terms of the disappointment. The company also is seeing just a lot of, like many legacy drug makers, a lot of generic competition. So it could focus in on some of the comments that the company made on the conference call about that.

- Pretty amazing to see the stock just trolling around Yahoo Finance Plus right now 13 times forward earnings on a PE ratio basis. Not normally-- that is not the normal multiple see on a Biogen, but I guess to your point, Julia, the markets still penalizing them for that Alzheimer's drug.

- And what we're seeing as well in the broader environment, especially for the relationship between some of the patients and practitioners right now, is patients looking to get back into everything from elective visits to their doctors which could lead to even more prescriptions of the solutions that Biogen has to offer but even more of the elective surgeries. And I think that broader kind of relationship post-pandemic, that's something that potentially could be giving them a little bit of optimism going into the rest of this year.

- Two more potential sort of dangling things here for Biogen-- it's going to end development of an experimental schizophrenia drug. Maybe that was an area of a little bit of a disappointment. And it's still looking for another CEO.

It said its CEO is going to be stepping down. So that search is still ongoing. There was no news on that front today.

- Have to have a CEO. Have to have a CEO.

- You do have to have a CEO, don't you?