Biogen's Milestones: New Drugs, Cost Savings, and Strategic Acquisitions

2024-01-09

Biogen, a leading biotechnology company, made significant strides under the leadership of CEO Chris Viehbacher during the past year. One of the company's key focuses was shifting attention from multiple sclerosis (MS) to new growth drivers. This shift was driven by the approval of two important drugs, LEQEMBI and Zuranolone.

LEQEMBI, a pioneering treatment for Alzheimer's, received both accelerated approval and full approval, marking a major breakthrough for Biogen. The company closely monitored indicators such as PET scans, blood-based biomarkers, and new patient starts on the registry to gauge the progress of LEQEMBI.

Zuranolone, on the other hand, targeted the treatment of postpartum depression, a condition that significantly impacts the mental health of many women who have recently given birth. Biogen's launch of Zuranolone garnered significant media attention and resonated with women seeking quick and effective treatment.

In addition to these new growth drivers, Biogen made significant changes to its R&D pipeline. The company eliminated projects that were not providing much value and focused its efforts on products like VUMERITY and SPINRAZA, which had shown positive results but were previously overlooked.

Biogen also took a strategic approach to its cost base, completely redesigning itself to ensure success in 2025. The company announced $1 billion of gross cost savings, enabling more efficient resource allocation and driving profitability.

In terms of acquisitions, Biogen made the strategic Reata acquisition in August. The European approval of this acquisition indicated a positive sign for Biogen, as the internal rate of return exceeded the weighted average cost of capital.

Looking ahead, Biogen is focused on expanding its presence on the West Coast and increasing collaborations. The company aims to establish a strong presence on the West Coast, similar to its existing presence on the East Coast, by increasing the number of collaborations it is involved in.

Overall, Biogen made significant progress in the past year with the approval of new drugs, a focus on cost savings, and strategic acquisitions. The company is well-positioned for future growth and remains committed to making a positive impact in the healthcare industry.