Biogen Inc.'s stock took a hit in the pre-market trading session on Wednesday, plummeting 5.3% as the biopharmaceutical company forecasted 2025 profit below Wall Street expectations.
The company's lackluster performance is attributed to two key factors:
1. The impact of a strong U.S. dollar, which has eroded the company's overseas revenue and profit.
2. Intensifying competition for its multiple sclerosis drugs, which have faced fierce rivalry in the market.
Despite efforts by the new CEO, Christopher Viehbacher, to streamline operations and pursue acquisitions, such as the $6.5 billion takeover of Reata Pharmaceuticals in 2023, concerns remain about Biogen's ability to sustain growth. The company expects 2025 revenue to decline by a mid-single-digit percentage, excluding currency fluctuations, from 2024 levels.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.