Biogen grows in Q2, but Sprinraza’s performance raises concerns for investors

Biogen reported an 8% increase in revenue in its Q2 results, with revenues in the second quarter hitting $3.6bn. The majority of the revenue was made up of its multiple sclerosis (MS) division with the MS products pulling in $2.2bn. However this news did not please investors as they are worried about Biogen’s reliance on its MS portfolio, as it is expected in the future that the MS products will face a slew of anticipated rivals.

Investors were also disappointed with the performance of Biogen’s SMA drug Sprinraza, which has been halted in its tracks since the launch of Novartis’s Zolgensma, with Sprinraza posting a dip of 6%. However Biogen’s marketing team were keen to stress that the rival drug is only approved for patients 2 years old and younger and will not intrude into Sprinraza’s market share. 

Biogen CEO Michel Vounatsos said ‘ its premature to make assumptions’ and that it is early days for Sprinraza, with Sprinraza having more room to grow in the US and that the drug prospects outside the US are actually larger than within the US.

Biogen has raised its revenue guidance to between $14bn and $14.2bn up $400m for either side. Market watchers are also looking at Biogen to do M&A or business development to bring in external products.

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