Stocks at Biogen are falling on Q1 results, and CEO Michel Vounatsos is relegated

Stocks at Biogen are falling on Q1 results, and CEO Michel Vounatsos is relegated ...

Get Biogen Inc. Report shares fell Tuesday after the drugmaker posted lower-than-expected first quarter earnings and reported that its CEO, Michel Vounatsos, would step down later this year.

Biogen, which received a controversial approval for itsAlzheimer''s treatment last year, said adjusted earnings for the three months ending in March were reported to be $3.62 per share, down 32.2% from last year, but was well ahead of the Street consensus prediction of $4.38 per share.

Biogen said the missing was partly linked to a 76 cents per share write-off ofAduhelm inventories.

Group earnings, according to Biogen, fell 6% from last year to $2.532 billion, a figure that surpassed analysts'' forecasts of a $2.5 billion deal.

Biogen saidVounatsos, who has served as the CEO since 2017, will leave the organization at an unveiled date, but will remain in place "until his successor is appointed."

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"I am very proud of Biogens'' unparalleled capabilities in neuroscience, a complex field with unprecedented medical need, and the addition of novel medicines and benefits we have provided to patients." "I am grateful to the Board of Directors and my colleagues for their support during this period."

"I will be leaving Biogen at a time of promise, with significant value potential, and I''d like to work with my successor through a smooth transition," he added.

Biogen''s stock was marked 2.32% down in pre-market trading, indicating an opening bell price of $202.50 per share.

Biogen said it expects revenues from $9.7 billion to $10 billion, down from its previous estimate of $110.98 billion, while reaffirming itsadjusted earnings prediction of between $14.25 and $16.00 per share.

Earlier this year, the Centers for Medicare and Medicaid Services said it will only cover treatment with Aduhelm and Biogen''s Alzheimer''s treatment. Biogen reduced the price of Aduhelm by around 50% in January, to $28,200 per year, in order to boost its potential potential reach.

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