Biogen cuts annual profit forecast on higher deal costs (Nov 8)
Reuters
Published Nov 14, 2023 06:29PM ET
(This Nov. 8 story has been corrected to say Biogen (NASDAQ:BIIB) cut profit forecast due to costs related to a deal, not the launch of its Alzheimer's drug, in paragraph 1 and the headline)
(Reuters) - Biogen cut its annual profit forecast below Wall Street expectations on Wednesday, on higher expenses related to the recent acquisition of rare disease drugmaker Reata Pharmaceuticals (NASDAQ:RETA).
The company had said in July it would cut about 1,000 jobs, or 11% of its workforce, to lower elevated costs compared to rivals and focus on higher-growth products such as Alzheimer's treatment Leqembi, which it sells with Japanese partner Eisai.
Since he was hired a year ago, CEO Christopher Viehbacher has led efforts to cut expenses and help Biogen recover from its missteps around the controversial Alzheimer's drug Aduhelm that never gained traction.
Biogen is banking on the success of Leqembi and tuck-in deals like its recent $6.5 billion buyout of Reata Pharmaceuticals to grow its revenue. It has incurred integration costs of about $30 million related to the acquisition.
The drugmaker expects full-year adjusted profit per share in the range of $14.50 to $15.00 compared with $15 to $16 forecast previously. Analysts were expecting $15.26.
On an adjusted basis, Biogen earned $4.36 per share, beating analysts' average estimate of $3.97, according to LSEG data.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.