On a GAAP basis, the company reported second-quarter EPS of $3.93, which included a gain of $86.8 million for amortization of acquired assets and a $17.1 million tax-related charge.
After commenting on Biogen’s multiple sclerosis and hemophilia treatments, the company’s CEO focused on the company’s trials of an Alzheimer’s disease treatment:
The Company also continues to invest in the science that is core to our future, and we are continuing to advance our pipeline in areas where patients have limited or no treatment options. We are excited to report we are now actively recruiting for two global Phase 3 studies of aducanumab in patients with early Alzheimer’s disease. We see aducanumab as a potentially transformational opportunity for Biogen, and for patients with this devastating disease.
Biogen also updated its full-year financial guidance. Revenue growth is now expected to be in the range of 6% to 8% above 2014 revenues of $9.7 billion. The company’s previous guidance called for revenue growth of 14% to 16% above last year’s revenues. Adjusted EPS guidance also was lowered from a prior range of $16.60 to $17.00 to a new range of $15.50 to $15.95.
The cuts to revenue and earnings guidance will absolutely hammer the share price in Friday trading. Sales of its multiple sclerosis drugs missed analysts’ revenue expectations, and the cuts to guidance indicate that Biogen expects those sales to remain lower than previous estimates.
Biogen shares traded down nearly 12% in premarket trading, at $340.00 in a 52-week range of $290.85 to $480.18. Thomson Reuters had a consensus analyst price target of $471.75 before the report.
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