(Reuters) – Biogen raised annual profit forecast and beat third-quarter profit expectations on Wednesday, as its cost-cutting measures helped make up for falling sales of its multiple sclerosis medicines.
The drugmaker has cut jobs and pulled the plug on less promising drug candidates in a series of cost-saving measures, focusing on higher-growth products as CEO Christopher Viehbacher takes the lead to bring the cash-strapped biotech back to growth.
The company has pinned its hopes on newly launched treatments, including Leqembi, which has seen a slow pick-up in sales in the United States after concerns over cost, efficacy and side effects. It sells for $26,500 annually in the U.S.
U.S. sales of Leqembi, which the company sells with Eisai, were $39 million for the third quarter ended Sept. 30. The Wall Street consensus was at $45 million, according to brokerage Jefferies.
Biogen now expects annual adjusted per-share profit of between $16.10 and $16.60 compared with previous forecast in the range of $15.75 to $16.25.
Analysts on average expected profit to be $16.19 per share for 2024, according to data compiled by LSEG.
The company reported an adjusted profit of $4.08 per share for the third quarter, topping expectations of $3.79 per share.
(Reporting by Mariam Sunny in Bengaluru; Editing by Pooja Desai)
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