The Zhitong Finance App learned that the quarterly revenue and adjusted earnings announced by BIIB.US (BIIB.US) exceeded analysts' expectations. This was due to increased sales of newly purchased kidney and eye disease drugs, which successfully compensated for the impact of the decline in revenue for multiple sclerosis (MS) drugs. The fiscal year showed that the company's second-quarter revenue rose 3.8% year over year to $2.7 billion, exceeding expectations of $240 million; earnings per share were $3.60, beating expectations of $1.57.
The company raised its full-year revenue forecast, saying that it currently expects sales to grow by a mid-single digit percentage rather than the middle single digit percentage decline previously predicted. However, Baijian lowered its adjusted profit guidance to reflect the costs and milestone payments associated with the acquisition.
Baijian lowered its full-year adjusted earnings forecast per share from $14.25 to $15.25 to $12 to $13, reflecting acquisition-related R&D expenses, milestone payments, and financing costs associated with the Apellis deal. Baijian pointed out that if these projects were excluded, the company's underlying earnings were expected to increase by $0.60 per share.
Under CEO Christopher Weibach, Baijian adopted an aggressive acquisition strategy to expand its traditional neuroscience business and find new sources of growth to replace the company's aging portfolio of multiple sclerosis medications. This strategy has brought it into new fields of treatment such as kidney disease and immunology.
Weibach said in a statement that Baijian has made “significant progress” in driving the company back to growth, and pointed out that sales of the company's new drugs have now surpassed the declining traditional multiple sclerosis series of drugs. Among them, Leqembi, a key drug for Alzheimer's disease sold in collaboration with Eisai, saw a 15% increase in sales this quarter to reach US$184 million, which is roughly in line with analysts' expectations.
In May of this year, Baijian completed the $5.6 billion acquisition of Apellis Pharmaceuticals Inc. Apellis's product portfolio includes Syfovre, which treats a blinding immune system disease, and Empaveli, which treats a rare blood disorder and certain rare kidney diseases. Baijian said the two drugs brought it nearly $128 million in revenue for the rest of the quarter.
Baijian also announced in June that it would acquire private immunology drug developer RayThera Inc., for up to $1 billion.
Several other new drugs also recorded strong quarterly growth. Among them, Zurzuvae's sales for postpartum depression surged 53% to $71 million; while Skyclarys sales for the rare disease Friedreich-Artus syndrome climbed to around $168 million, exceeding analysts' expectations.