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Biogen (BIIB) to Report Q2 Earnings: Here's What to Expect
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Biogen (BIIB - Free Report) will report second-quarter 2023 results on Jul 25, before market open. In the last reported quarter, the company delivered an earnings surprise of 4.62%.
Factors to Consider
Biogen’s sales in the second quarter are likely to have been hurt by lower sales of its multiple sclerosis drugs. Biogen’s multiple sclerosis revenues have been declining for the past few quarters as a result of increasing competition for many MS products. It is unlikely that MS sales have improved in the second quarter. However, the rate of decline in sales growth of MS drugs is expected to have been slower than first-quarter levels.
Among Biogen’s MS drugs, sales of Tecfidera are likely to have declined steeply, as multiple generic versions of the drug have been launched in the United States and new generic launches are ongoing in several EU countries.
The Zacks Consensus Estimate and our model estimates for second-quarter sales of Tecfidera are pegged at $272 million and $234.9 million, respectively.
Sales of another MS drug, Tysabri are also likely to have declined in the second quarter due to increased competitive pressure and competition.
The Zacks Consensus Estimate and our estimates for Tysabri are pegged at $487 million and $519.8 million, respectively.
Sales volumes of another MS drug Vumerity were hurt by pricing pressure and a contraction of the oral segment of the market in the United States in the first quarter. It remains to be seen if sales improved in the second quarter.
The Zacks Consensus Estimate and our estimates for Vumerity are pegged at $142 million and $150.4 million, respectively.
Biogen receives royalties on U.S. sales of Roche’s (RHHBY - Free Report) MS drug, Ocrevus, which is also expected to have contributed to the top line.
Revenues from Biogen’s profit share of Roche’s drugs, Rituxan and Gazyva, are also likely to have declined in the quarter due to biosimilar competition for Rituxan.
Sales of Biogen’s spinal muscular atrophy drug, Spinraza are expected to have declined in the United States due to fewer new patient starts. However, some stabilization in patient use is expected in the United States. Increased competition in the United States has been hurting demand and sales of Spinraza in the past few quarters. Outside the United States, volume growth in certain Asian markets is likely to have made up for increased competition in some established European markets like Germany. The Zacks Consensus Estimate and our estimates for Spinraza are pegged at $435.0 million and $445.6 million, respectively.
Biosimilars revenues are expected to have been modest as the continued launch of Byooviz is likely to have made up for pricing pressure in certain markets.
In the second quarter, Biogen expects to recognize a reduction of Alzheimer’s disease revenues, with commercial expense exceeding initial revenues. Alzheimer’s disease revenues include product revenues from Alzheimer’s drug, Aduhelm and revenues from Leqembi collaboration with Eisai.
In April, the FDA granted accelerated approval Biogen’s tofersen 100 mg/15mL injection under the brand name Qalsody for the treatment of amyotrophic lateral sclerosis in adults who have a mutation in the superoxide dismutase 1 gene. Investor focus will be on the new medicine’s initial sales numbers.
Key Recent Development
The FDA granted traditional approval to Biogen and partner Eisai’s Leqembi, an anti-amyloid beta protofibril antibody drug, for the treatment of AD, in early July. It was a huge milestone for the companies as Leqembi is the first Alzheimer’s drug to get traditional approval from the FDA. The FDA had granted accelerated approval to Leqembi in January. However, the drug was not expected to contribute much to revenues until the Centers for Medicare & Medicaid Services (CMS) granted reimbursement for it under Medicare plans. Once Leqembi received traditional approval, the CMS also announced broader Medicare coverage for the same. A broad range of patients can get access to Leqembi following CMS’ decision.
Earnings Surprise History
The company’s earnings beat estimates in all the last four quarters. The company has a four-quarter earnings surprise of 15.97%, on average.
Biogen’s stock has declined 0.3% so far this year compared with a decrease of 9.3% for the industry
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Biogen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Biogen’s Earnings ESP is -1.77% as the Zacks Consensus Estimate of $3.77 per share is higher than the Most Accurate Estimate of $3.70 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Biogen has a Zacks Rank #3.
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
AstraZeneca’s stock has declined 1.6% this year so far. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.11%, on average. AstraZeneca is scheduled to release its second-quarter results on Jul 28.
Moderna (MRNA - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #3.
Moderna’s stock has declined 31.7% this year so far. The company beat earnings estimates in two of the last four quarters while missing in the other two. MRNA has a four-quarter earnings surprise of 21.97%, on average. MRNA is scheduled to release its second-quarter results on Aug 3.
Image: Bigstock
Biogen (BIIB) to Report Q2 Earnings: Here's What to Expect
Biogen (BIIB - Free Report) will report second-quarter 2023 results on Jul 25, before market open. In the last reported quarter, the company delivered an earnings surprise of 4.62%.
Factors to Consider
Biogen’s sales in the second quarter are likely to have been hurt by lower sales of its multiple sclerosis drugs. Biogen’s multiple sclerosis revenues have been declining for the past few quarters as a result of increasing competition for many MS products. It is unlikely that MS sales have improved in the second quarter. However, the rate of decline in sales growth of MS drugs is expected to have been slower than first-quarter levels.
Among Biogen’s MS drugs, sales of Tecfidera are likely to have declined steeply, as multiple generic versions of the drug have been launched in the United States and new generic launches are ongoing in several EU countries.
The Zacks Consensus Estimate and our model estimates for second-quarter sales of Tecfidera are pegged at $272 million and $234.9 million, respectively.
Sales of another MS drug, Tysabri are also likely to have declined in the second quarter due to increased competitive pressure and competition.
The Zacks Consensus Estimate and our estimates for Tysabri are pegged at $487 million and $519.8 million, respectively.
Sales volumes of another MS drug Vumerity were hurt by pricing pressure and a contraction of the oral segment of the market in the United States in the first quarter. It remains to be seen if sales improved in the second quarter.
The Zacks Consensus Estimate and our estimates for Vumerity are pegged at $142 million and $150.4 million, respectively.
Biogen receives royalties on U.S. sales of Roche’s (RHHBY - Free Report) MS drug, Ocrevus, which is also expected to have contributed to the top line.
Revenues from Biogen’s profit share of Roche’s drugs, Rituxan and Gazyva, are also likely to have declined in the quarter due to biosimilar competition for Rituxan.
Sales of Biogen’s spinal muscular atrophy drug, Spinraza are expected to have declined in the United States due to fewer new patient starts. However, some stabilization in patient use is expected in the United States. Increased competition in the United States has been hurting demand and sales of Spinraza in the past few quarters. Outside the United States, volume growth in certain Asian markets is likely to have made up for increased competition in some established European markets like Germany. The Zacks Consensus Estimate and our estimates for Spinraza are pegged at $435.0 million and $445.6 million, respectively.
Biosimilars revenues are expected to have been modest as the continued launch of Byooviz is likely to have made up for pricing pressure in certain markets.
In the second quarter, Biogen expects to recognize a reduction of Alzheimer’s disease revenues, with commercial expense exceeding initial revenues. Alzheimer’s disease revenues include product revenues from Alzheimer’s drug, Aduhelm and revenues from Leqembi collaboration with Eisai.
In April, the FDA granted accelerated approval Biogen’s tofersen 100 mg/15mL injection under the brand name Qalsody for the treatment of amyotrophic lateral sclerosis in adults who have a mutation in the superoxide dismutase 1 gene. Investor focus will be on the new medicine’s initial sales numbers.
Key Recent Development
The FDA granted traditional approval to Biogen and partner Eisai’s Leqembi, an anti-amyloid beta protofibril antibody drug, for the treatment of AD, in early July. It was a huge milestone for the companies as Leqembi is the first Alzheimer’s drug to get traditional approval from the FDA. The FDA had granted accelerated approval to Leqembi in January. However, the drug was not expected to contribute much to revenues until the Centers for Medicare & Medicaid Services (CMS) granted reimbursement for it under Medicare plans. Once Leqembi received traditional approval, the CMS also announced broader Medicare coverage for the same. A broad range of patients can get access to Leqembi following CMS’ decision.
Earnings Surprise History
The company’s earnings beat estimates in all the last four quarters. The company has a four-quarter earnings surprise of 15.97%, on average.
Biogen Inc. Price and EPS Surprise
Biogen Inc. price-eps-surprise | Biogen Inc. Quote
Biogen’s stock has declined 0.3% so far this year compared with a decrease of 9.3% for the industry
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Biogen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Biogen’s Earnings ESP is -1.77% as the Zacks Consensus Estimate of $3.77 per share is higher than the Most Accurate Estimate of $3.70 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Biogen has a Zacks Rank #3.
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AstraZeneca’s stock has declined 1.6% this year so far. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.11%, on average. AstraZeneca is scheduled to release its second-quarter results on Jul 28.
Moderna (MRNA - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #3.
Moderna’s stock has declined 31.7% this year so far. The company beat earnings estimates in two of the last four quarters while missing in the other two. MRNA has a four-quarter earnings surprise of 21.97%, on average. MRNA is scheduled to release its second-quarter results on Aug 3.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.