Biogen (NASDAQ:BIIB) shares lost ground on Tuesday. This, after the company reported fourth-quarter revenue and profit that shrank from a year ago, as it recorded charges related to dropping its controversial Alzheimer’s drug Aduhelm and as sales slumped in its multiple sclerosis therapies, the company’s biggest drug category.
Biogen booked sales of $2.39 billion for the quarter, down 6% from the same period a year ago. It reported net income of $249.7 billion, or $1.71 per share, for the fourth quarter, down from net income of $550.4 billion, or $3.79 per share, for the same period a year ago. Adjusting for one-time items, the company reported $2.95 per share.
The drugmaker’s fourth-quarter earnings per share, both unadjusted and adjusted, saw a negative impact of 35 cents associated with previously disclosed costs of pulling Aduhelm, which had a polarizing approval and rollout in the U.S.
Biogen is cutting costs while pinning its hopes on its other Alzheimer’s drugs, including its closely watched treatment Leqembi, and other newly launched products to replace declining revenue from its multiple sclerosis therapies.
In the fourth quarter, Biogen reported earnings per share of $2.95 adjusted, as opposed to the expected $3.18, on revenue of $2.39 billion vs. $2.47 billion expected.
Also on Tuesday, Biogen issued full-year 2024 guidance that calls for adjusted earnings of $15 to $16 per share. Analysts had expected full-year earnings guidance of $15.65 per share.
BIIB shares stumbled $12.12, or 5%, to $232.62.
