The Strategist

Biogen's quarterly profit falls 2.2-fold due to abandonment of Aduhelm’s development

02/14/2024 - 07:34

The fourth quarter of 2023 saw a 2.2-fold decline in net profit for Biogen Inc., a US biotechnology company. This decline was partly caused by one-time expenses related to the decision to forgo the development and marketing of Aduhelm, a medication intended to treat Alzheimer's disease.

In October through December, the company's net income was $249.7 million, or $1.71 per share, as opposed to $550.4 million, or $3.79 per share, in the same period last year. Excluding one-time items, earnings were $2.95 per share, below the average estimate of $3.18 per share provided by FactSet's panel of analysts.

Biogen incurred $0.35 per share in costs related to the termination of the Aduhelm drug development project, which the firm disclosed in January.

The business's revenue for the quarter dropped by 6% to $2.386 billion, missing the $2.466 billion market consensus estimate.

In 2023, Biogen's revenue dropped 3% to $9.84 billion, while its net income dropped 2.6 times to $1.16 billion, or $7.97 per share, with adjusted earnings of $14.72 per share.

The company projects nonrecurring earnings of $15–16 per share in 2024, with a 1%–5% decline in revenue.

Biogen has seen a 15% decrease in capitalization over the last 12 months.