Biogen Inc (NASDAQ:BIIB) stock fell 3.04% (As on November 9, 11:44:38 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that topped analyst expectations. Biogen’s multiple sclerosis (MS) product revenue declined by 14% to $1.16 billion, while spinal muscular atrophy revenue increased by 4% to $448 million. Biosimilars revenue also saw a 4% rise to $194 million. The company’s total product revenue fell by 8% to $1.81 billion, but contract manufacturing, royalty, and other revenue surged by 135% to $304 million. Cost of sales increased by 40%, with GAAP and Non-GAAP cost of sales at $660 million, representing 26% of total revenue. GAAP R&D expenses rose by 34% to $736 million, and GAAP SG&A expenses increased by 40% to $788 million. These increases were primarily due to acquisition-related charges from the recent acquisition of Reata, including stock-based compensation expense associated with the accelerated vesting of stock options previously granted to Reata employees.
BIIB in the third quarter of FY 23 has reported the adjusted earnings per share of $4.36, beating the analysts’ estimates for the adjusted earnings per share by 37 cents. The company had reported 1 percent rise in the adjusted revenue to $2.53 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $2.39 billion. Biogen ended the quarter with $2.29 billion in cash, cash equivalents, and marketable securities, and a total debt of $7.29 billion, resulting in net debt of $4.99 billion. The company generated a net cash flow from operations of $592 million and a free cash flow of $518 million after accounting for capital expenditures of $74 million.
Additionally, the company’s financial position remains robust, with no shares repurchased during the quarter and $2.05 billion remaining under the share repurchase program authorized in October 2020.
Meanwhile, Biogen’s leadership expressed confidence in the company’s long-term growth, citing the FDA approval for LEQEMBI and ZURZUVAE, the closing of the Reata transaction, and the initiation of a $1 billion “Fit for Growth” cost savings program. He emphasized the company’s focus on execution and leadership in Alzheimer’s disease through the LEQEMBI launch and the development of tau-directed ASO (BIIB080).
Looking ahead, Biogen expects earnings per share in the range of $14.50 to $15.00 for the full year 2023, compared to the earlier guidance of $15 to $16. This adjustment reflects approximately $0.75 of dilution from the Reata deal.
The company now anticipates a low-single-digit percentage decline in annual revenue, whereas it previously expected a mid-single-digit drop. stock fell 3.04% (As on November 9, 11:44:38 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that topped analyst expectations. Biogen’s multiple sclerosis (MS) product revenue declined by 14% to $1.16 billion, while spinal muscular atrophy revenue increased by 4% to $448 million. Biosimilars revenue also saw a 4% rise to $194 million. The company’s total product revenue fell by 8% to $1.81 billion, but contract manufacturing, royalty, and other revenue surged by 135% to $304 million. Cost of sales increased by 40%, with GAAP and Non-GAAP cost of sales at $660 million, representing 26% of total revenue. GAAP R&D expenses rose by 34% to $736 million, and GAAP SG&A expenses increased by 40% to $788 million. These increases were primarily due to acquisition-related charges from the recent acquisition of Reata, including stock-based compensation expense associated with the accelerated vesting of stock options previously granted to Reata employees.
BIIB in the third quarter of FY 23 has reported the adjusted earnings per share of $4.36, beating the analysts’ estimates for the adjusted earnings per share by 37 cents. The company had reported 1 percent rise in the adjusted revenue to $2.53 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $2.39 billion. Biogen ended the quarter with $2.29 billion in cash, cash equivalents, and marketable securities, and a total debt of $7.29 billion, resulting in net debt of $4.99 billion. The company generated a net cash flow from operations of $592 million and a free cash flow of $518 million after accounting for capital expenditures of $74 million.
Additionally, the company’s financial position remains robust, with no shares repurchased during the quarter and $2.05 billion remaining under the share repurchase program authorized in October 2020.
Meanwhile, Biogen’s leadership expressed confidence in the company’s long-term growth, citing the FDA approval for LEQEMBI and ZURZUVAE, the closing of the Reata transaction, and the initiation of a $1 billion “Fit for Growth” cost savings program. He emphasized the company’s focus on execution and leadership in Alzheimer’s disease through the LEQEMBI launch and the development of tau-directed ASO (BIIB080).
Looking ahead, Biogen expects earnings per share in the range of $14.50 to $15.00 for the full year 2023, compared to the earlier guidance of $15 to $16. This adjustment reflects approximately $0.75 of dilution from the Reata deal.
The company now anticipates a low-single-digit percentage decline in annual revenue, whereas it previously expected a mid-single-digit drop.