Biogen and partner Eisai's Alzheimer's disease therapy Leqembi demonstrated significant momentum in the second quarter of 2024, with global sales reaching $160 million representing a 58% increase, according to the company's earnings report released Thursday. The results exceeded analyst expectations and provided evidence that the challenging market launch may be gaining traction.
Strong Revenue Performance Across Portfolio
Biogen reported a 7% increase in total revenue to $2.6 billion for the second quarter, with Leqembi's U.S. sales rising 20% to $63 million. The global sales figure included a one-time stock shipment to China worth $35 million, but even accounting for this, the growth trajectory showed substantial improvement from earlier quarters.
"It's way more than what we thought it was going to be at this time point, and so we do believe this is a pivotal moment," said Alisha Alaimo, president and head of North America operations, during the earnings call.
Despite competitive pressure from Eli Lilly's recently approved Kisunla, Leqembi maintains a commanding 70% market share in the Alzheimer's treatment space, according to Alaimo.
Diagnostic Infrastructure Improvements Drive Adoption
The drug's uptake has been historically slow due to complex diagnostic testing requirements and monitoring protocols for side effects. However, CEO Chris Viehbacher noted that blood-based biomarker tests are helping to "remove some of the bottlenecks in the system."
Alaimo explained that biomarker testing has "picked up considerably as faster and more convenient tests receive approval, leading to more patients being diagnosed and put in line for treatment."
Partnership Dynamics and European Arbitration
Addressing concerns about the Biogen-Eisai partnership, Viehbacher acknowledged that the companies have filed arbitration in Europe over commercial allocations but emphasized that the relationship is "better than it has ever been."
"It's not always easy for companies to work together, and it's normal, because a lot of things are just never black and white in terms of how we approach them," Viehbacher said. "There are times where you know there is going to be a disagreement, and I think we have that in terms of how we launch in Europe, and we're just following the process in our contract."
Pipeline Strategy and Business Development Focus
Looking ahead, Viehbacher outlined Biogen's strategy for pipeline expansion, stating that "definitely early stage is on the cards." The company plans to pursue deals similar to the City Therapeutics research collaboration from May, where Biogen paid $46 million upfront with up to $1 billion in milestones for new RNAi therapies targeting central nervous system diseases.
The CEO cited the successful $1.8 billion acquisition of HI-BIO as a model for future deals, noting that Biogen has "integrated and kept intact" the acquired biotech, allowing it to leverage Biogen's global clinical trials network.
"As we look at opportunities, I always say, you can never have enough pipeline. [But] it has to fit strategically with what we're already doing. We don't want to stretch our teams more than we need to, and it has to make financial sense," Viehbacher explained.
Multiple Sclerosis Franchise Outperforms Expectations
Biogen's multiple sclerosis business delivered strong results, outperforming BMO's consensus by 17% with sales of $1.11 billion. Tysabri generated $454 million in global sales, exceeding Jefferies' expectations by $77 million, though this represented a slight decline from $462 million in the same quarter last year.
While the overall MS franchise showed a modest decline from $1.15 billion in the prior year period, the performance beat expectations given the anticipated erosion from generic competition and new anti-CD20 therapies.
Additional Product Performance
Zurzuvae, Biogen's post-partum depression treatment developed with Sage Therapeutics, achieved a 41% consensus beat with $46 million in quarterly sales, representing a 68% increase over the same quarter last year. Alaimo attributed the strong performance to Biogen's expanded field team marketing efforts.
Revised Financial Guidance
Based on the strong quarterly performance, Biogen raised its full-year revenue guidance to $15.50-16 billion, up from the previous range of $14.50-15.50 billion. The company expects revenue growth to slow in the second half of the year, leading to flat growth for the full year.
The improved financial performance was also supported by Biogen's "Fit for Growth" cost-saving program, which aims to achieve $1 billion in savings by 2025. R&D expenses decreased to $399 million in the quarter, down from $505 million in the second quarter of 2024.
