The stock price of Biogen declined after the biotechnology company revealed the slowing sales of its multiple sclerosis (MS) drug, Tecfidera. Biogen was also negatively impacted by a delay in data readout for its Alzheimer’s drug.
The shares of Biogen were trading $405.21 per share, down by almost 6% at the time of this writing, around 12:51 in the afternoon in New York.
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Biogen first quarter financial results
Biogen reported that its Non-GAAP diluted earnings increased 55% to $3.82 per share, and revenue rose 20% to $2.6 billion in the first quarter of 2015.
The biotechnology company said its GAAP earnings on a reported basis increased 73% to $3.49 per share.
According to Biogen, the total sales for its multiple sclerosis products was $2.1 billion for the first quarter, higher than the $1.7 billion sales recorded in the same period last year.
Its revenue from Tecfidera was $825 million including $648 million in the United States and $177 million overseas. The company generated $506 million in the same period last year including $460 million in the U.S. and $46 million in other countries.
Biogen said its revenue from Tecfidera in the first quarter of 2015 was 10% lower than its revenue in the fourth quarter of 2014. The company explained that the decline was due to increased discounts and allowances and update pricing assumptions in Germany. The shipping week in the U.S. during the first quarter was also one week lesser than the previous quarter.
In a statement, Biogen CEO George A. Scangos, Ph.D. said, “While we saw moderating patient growth of our oral MS therapy TECFIDERA in the U.S. and Germany, the launch of PLEGRIDY continued to go well, and we have seen continued strong performance from TYSABRI. We believe that our portfolio offers patients leading choices among oral, interferon, and high-efficacy therapies, and we look forward to continued growth in our global market share.”
Scangos emphasized that Biogen continued to gain share in the MS market, and the company has a strong MS product portfolio.
Biogen Alzheimer’s drug
Last month, Biogen reported that its drug aducanumab (BIIB037) demonstrated positive results in patients with mild Alzheimer’s disease. The drug slowed significantly down the cognitive decline and reduced the amyloid plaque in patients’ brains. Medical professionals believe that the plaque is the cause of the majority of the symptoms of Alzheimer’s. There are more than 15 million people suffering from Alzheimer’s.
Biogen said the availability of a 6 mg dose of aducanumab would be available in July. The 10 mg dose of the Alzheimer’s drug will not be available until next year.