Most Biogen (NASDAQ: BIIB) shareholders are probably excited about the company's newly approved Alzheimer's drug Leqembi right about now, and it's no surprise why. Some commentators are calling for the therapy to bring in $12.9 billion in sales annually through 2028, which works out to be more than double its top-line revenue of $10.1 billion in 2022.

But exuberance about Leqembi ignores some other financial metrics that should unsettle investors, and might even convince some of them to sell.

As a pharma company, Biogen needs to consistently use its research and development (R&D) capabilities to discover, test, and commercialize new medicines over time. For the business to grow, and for shareholders to earn a return, it needs to make more money from selling its medicines than it costs to develop them. Furthermore, it needs to convince the market that it's going to make more and more money over time in order for shareholders to justify holding onto their shares. But at least two of the key metrics that measure its success with all of the above are looking mediocre, even over the long term.

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Source Fool.com