Health and Healthcare
Why Biogen Shares Are Tumbling After Earnings Report
Published:
Last Updated:
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.
ALSO READ: The Worst Companies to Work For
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.