Spinraza outweighs weak multiple sclerosis drug sales, drives Biogen profit beat

[April 22, 2021]   (Reuters) - Biogen Inc thumped estimates for quarterly profit on Thursday as strong demand for spinal muscular atrophy treatment Spinraza cushioned the blow from eroding sales of multiple sclerosis drug Tecfidera in the face of cheaper rival options.

The company also raised its full-year adjusted profit forecast and reiterated that it includes anticipated sales from its Alzheimer's treatment being reviewed by the U.S. drug agency.

Biogen said it was ready to launch aducanumab, its treatment for Alzheimer's disease, even as it awaits U.S. approval for the drug. If granted approval, the company said there were more than 600 sites in the United States ready to treat patients.

Tecfidera generated sales of $3.84 billion in 2020, accounting for 28.5% of the company's total revenue, and Biogen has said it expects a "financial reset" in 2021 primarily due to the entry of the generics.

In the first quarter, sales of the drug tumbled 56.4% to $479.3 million, but stayed ahead of Wall Street estimates of $463.37 million.

Spinraza sales fell 8% to $521 million, but fared better than Street expectations of $483 million.

Biogen raised its 2021 adjusted profit forecast to $17.50 to $19.00 per share from the previous expectation of $17 to $18.5 per share.

Total revenue fell to $2.69 billion but beat estimates of $2.65 billion.

Excluding items, Biogen earned $5.34 per share, above Refinitiv IBES estimates of $5.04.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva)

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