Biogen Projects Lower-Than-Expected 2025 Earnings
Biogen (BIIB) has forecasted its 2025 earnings to fall short of Wall Street estimates due to currency headwinds and competition for its multiple sclerosis treatments. The company's stock declined by 3% in pre-market trading following the announcement.
Investors shed Biogen shares in 2024 amid concerns over the slow U.S. launch of Leqembi, its Alzheimer's disease drug developed in partnership with Eisai. To address these challenges, the company appointed former Sanofi CEO Christopher Viehbacher in 2022. Viehbacher has implemented a $1 billion cost-cutting plan and led acquisitions like the $6.5 billion purchase of Reata Pharmaceuticals in 2023.
Excluding currency fluctuations, Biogen expects its 2025 revenue to decline by a mid-single-digit percentage compared to 2024 levels. "Our financial discipline has allowed us to restructure our operating expenses and reallocate resources toward potential future growth drivers," said Viehbacher.
On an adjusted basis, Biogen's 2025 earnings are projected to range between $15.25 and $16.25 per share. This falls below the 2024 figure of $16.47 and the analyst consensus estimate of $16.34 per share for 2025.
The company noted that its outlook excludes any potential impact from future acquisitions or changes in tax or healthcare policies due to their unpredictable nature. Excluding certain items, Biogen reported fourth-quarter earnings of $3.44 per share, surpassing the consensus estimate of $3.35.