: Biogen tops earnings estimates and says it will shift resources to higher value areas

Biogen Inc.’s stock BIIB rose 1.1% premarket Tuesday, after the company swept past earnings estimates for the second quarter and said it will shift resources to areas that offer the most value. “In the second quarter, Biogen continued to advance groundbreaking science with the FDA approval of two first-in-class therapies for Alzheimer’s disease and ALS, while also delivering on our base business expectations,” said CEO Christopher A. Viehbacher. “Biogen’s business is in transition. “Accordingly, we have taken a bottom-up view to shift our resources to the areas of greatest value creation. While we will be making significant investments in our newly prioritized pipeline and new product launches, we will also need to invest less in other areas which are no longer growing.” The company posted net income of $591.6 million, or $4.07 a share, for the quarter, down from $1.058 billion, or $7.24 a share, in the year-earlier period. Revenue edged down to $2.456 billion from $2.589 billion, but beat the $2.365 billion FactSet consensus. The company backed its full-year guidance for adjusted EPS of $15 to $16 and for revenue to be down by a mid-single digit percentage rate from 2022. The stock has gained 0.03% in the year through Monday’s close, while the S&P 500 SPX has gained 18.6%.

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