Things Just Got Worse for Biogen
It's been a forgettable year for Biogen (NASDAQ: BIIB). Total revenue is down year over year from $13.4 billion to $11 billion, and the company is guiding even lower for 2022. Management forecasts that non-GAAP diluted earnings per share (EPS) will free fall to between $14.25 and $16, down from $24.13 in 2020.
But the disheartening news doesn't stop there. Just last week, the company announced it had officially withdrawn its Alzheimer's drug, Aduhelm, from consideration for authorization in Europe. With this news, investors can't help but wonder what the future of this neurology-focused healthcare company will look like. Over the last few years, Biogen had hinged much of its future growth on its Alzheimer's disease pipeline, which appears to be in serious jeopardy at the moment.
Adding insult to injury, the Center for Medicare and Medicaid Services (CMS) finalized its own policy earlier this month, essentially stating that it will not pay for Aduhelm outside of clinical trials, and adding that it won't reconsider its stance until there is evidence the drug has meaningful clinical benefit. Ouch.
Source Fool.com
