Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Biogen Falls on Bleak Outlook for Aduhelm, Entry of Generics  

Stock Markets Feb 03, 2022 12:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – Biogen stock (NASDAQ:BIIB) traded 2% lower Thursday after the company projected its annual revenue to fall further after declining in 2021, a disappointing development after much was expected from its Alzheimer’s drug, Aduhelm.

Biogen expects full year 2022 revenue to fall to between $9.7 billion and $10 billion, another hit after 2021 sales eroded 18% to just shy of $11 billion.

The financial guidance assumes minimal Aduhelm revenue in 2022 after the drug clocked in a mere $3 million in around five months of its presence in the market. The company also expects entry of certain generics in the U.S. to hit its sales. Broader competition will weigh too.

Aduhelm has been surrounded in controversy since June 7 when the Food and Drug Administration approved it. It was the first drug in 18 years to secure the nod for treatment of the neurodegenerative disease.

The approval attracted much criticism because of perceived lack of benefits of the treatment over existing alternatives. The controversy was further stoked by the expensive annual $56,000 tag of the treatment. The price was seen as a significant burden on Medicare, which covers more than 60 million people. Six months later, Biogen almost halved the price.  

Earlier this month, the U.S. Centers for Medicaid and Medicare Services proposed to restrict coverage for Alzheimer's drugs, including Aduhelm, only to patients taking part in approved clinical trials. A final decision is expected in April.

The company has warned it could be forced to cut more costs, beyond the current program to save $500 million annually, if the final coverage decision is not broader.

"We will take aggressive steps should the ... (coverage proposal) remain in its current form," Reuters quoted Chief Executive Officer Michel Vounatsos as saying.

Fourth quarter total revenue fell 4% to $2.7 billion. Adjusted net profit per share was $3.39 and beat estimates. Biogen expects adjusted EPS for the year to be $14.25-$16.00 per share.

 

Biogen Falls on Bleak Outlook for Aduhelm, Entry of Generics  
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email