By Mariam Sunny
(Reuters) - Biogen (NASDAQ:BIIB) raised its annual profit forecast on Wednesday, as new treatments and cost-cutting measures offset declining sales of its multiple sclerosis drugs.
However, the drugmaker's shares fell nearly 3%, as sales of some key treatments such as its spinal muscular atrophy drug, Spinraza, and rare disease treatment, Skyclarys, missed estimates.
The timing is crucial as the company navigates the slow pick-up of its keenly watched Alzheimer's Disease drug.
"Expectations are low so a decent quarter is good, but they need more... to get investors truly engaged and shift away from Leqembi," Jefferies analyst Michael Yee said in a note.
Biogen has slashed jobs and pulled the plug on less promising drug candidates as part of a series of cost-saving measures, 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.
"We don't believe that we have a demand issue. It is just taking the healthcare system time to actually adapt to treating this number of patients," Viehbacher said in a post-earnings call.
The drug was deemed too expensive for the UK's state-run health service in August. The EU regulator is expected to wrap up reexamining the drug's rejection this year, Biogen said.
Leqembi is also approved in China, Hong Kong, Israel, Japan and South Korea.
The drug, which the company sells with Eisai, brought in about $67 million globally, beating estimates of $56 million, according to brokerage Piper Sandler.
Sales of newer treatments such as postpartum depression drug, Zurzuvae, and amyotrophic lateral sclerosis drug, Qalsody, beat estimates by $3 million and about $5 million, respectively. But Spinraza's $381.4 million sales missed an estimate of $430.5 million.
Biogen expects annual adjusted profit per share of $16.10 to $16.60, compared with a $15.75 to $16.25 per-share range previously. It reported adjusted profit of $4.08 per share, topping an estimate of $3.79 per share.