Biogen's 2025 Profit Forecast Falls Short Amidst Increased Competition

Biogen's profit forecast for 2025 has fallen below Wall Street expectations, primarily due to a strong dollar and intense competition affecting its multiple sclerosis treatments. The company anticipates a mid-single digit revenue decline compared to 2024, despite previous growth from its Alzheimer’s drug, Leqembi, which has seen a slow launch in the US. CEO Christopher Viehbacher has initiated a $1 billion cost-saving plan and executed a $6.5 billion acquisition of Reata Pharmaceuticals to bolster the company's position. Adjusted earnings for 2025 are projected between $15.25 and $16.25 per share, slightly lower than analysts' forecasts. Although Biogen reported better-than-expected earnings of $3.44 per share for the fourth quarter of 2024, sustaining this momentum will depend on how effectively the company navigates external economic challenges and competition. Investors are closely monitoring Biogen's strategies to manage these hurdles and drive future growth.