Biogen Inc. (NASDAQ:BIIB) executed well in 2002 and maintained leadership across all its core businesses. According to Chief executive officer, Michael Vounatsos, significant progress was made towards the building of a multi-franchise portfolio. The company also made impressive strides on internal pipeline developments at the back of multiple strategic collaborations.
Revenue Drop
Amid the challenges triggered by COVID-19 in 2020, the biotechnology company is projecting a financial reset in 2021. The company is especially betting on the entry of TECFIDERA generics as well as regulatory approval on a number of treatments such as aducanumab for Alzheimer disease
The remarks come hot on the heels of the company reporting a 22% decline in fourth-quarter revenue that totaled $2.9 billion, beating consensus estimates of $2.79 billion. Net income totaled $706 million or $4.58 a share against consensus estimates of $4.78 a share.
Sales on OCREVUS totaled $1.8 billion, a 24% drop versus the prior year's same quarter sales. SPINRAZA revenue totaled $498 million, an 8% drop, while Biosimilars revenues came in at $197 million, a 1% year over year increase.
For the full-year, revenues dropped 6% to $13.4 billion as net income totaled $5.4 billion or $33.70 a share. Biogen expects full-year 2021 revenues to be between $10.45 billion and $10.75 billion. In contrast, polled analysts expect the company to post full-year revenue of $11.3 billion.
Biogen 2021 Outlook
Earnings per share are expected at between $17 and $18.50 a share. Capital expenditures are expected at between $375 million and $425 million. Likewise, Biogen expects aducanumab to be approved for the treatment of Alzheimer's to help support the full year guidance. The Full-year guidance also assumes a sharp decline of TECFIDERA in the U.S. This is part because the drug is on course to face stiff generic competition.
Tecfidera brought in $607 million in revenues in 2020, down 48% year over year; however, it was still much higher than $542 million expected. In addition, the company’s cancer medicine Rituxan is also facing lower-cost copy cats.