By Dhirendra Tripathi
Investing.com – Biogen (NASDAQ:BIIB) stock rose nearly 2% Thursday as the biotech company revised its annual guidance while reporting second-quarter revenue of $2 million from the sale of its controversial drug for Alzheimer’s.
The company now expects total revenue of $10.65 billion to $10.85 billion in the ongoing financial year. It had earlier guided for annual revenue between $10.45 billion and $10.75 billion.
Guidance for adjusted diluted earnings per share and the capex was kept unchanged. EPS outlook remains in the range of $17.50 to $19 and capex $375 million to $425 million.
“This financial guidance continues to assume modest Aduhelm revenue in 2021, ramping thereafter,” the company said in a note, referring to the Alzheimer's drug.
Biogen said both non-GAAP R&D and non-GAAP selling, general and administrative expenses will be higher in the second half of the year than they were in the first half due to collaborations, program readouts, and investments in Aduhelm.
On June 7, Aduhelm became the first drug in 18 years to secure Food and Drug Administration’s nod for treatment of patients suffering from the neurodegenerative disease.
Biogen is charging $56,000 for an annual course, a price drawing much criticism from advocacy groups.
The FDA has been accused of ignoring the advice of its own outside advisors, who said Biogen did not provide enough evidence of clinical benefit over the existing prescriptions. According to some, FDA’s decision was hasty.
Three members of the FDA’s advisory panel resigned in protest against the regulator’s decision.
At least three hospitals including Cleveland Clinic and Mount Sinai have decided against using Aduhelm.
Second-quarter revenue fell 25% year-on-year to $2.77 billion. Amortization expenses rose short of 10-fold to $604.1 million. Diluted EPS was $2.99 as against $9.59 in the same quarter a year ago.