NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of those who acquired Biogen Inc. (“Biogen” or the “Company”) (NASDAQ: BIIB) securities during the period of February 3, 2022 through February 13, 2024, inclusive (“the Class Period”). Investors have until July 22, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On November 8, 2023, Biogen negatively revised non-GAAP diluted EPS guidance for fiscal year 2023 in a range of $14.50 to $15.00 per share, significantly below its previous guidance of fiscal year 2023 non-GAAP diluted EPS of $15.00 to $16.00 per share, citing approximately $0.75 of dilution from its acquisition of Reata. On this news, price of Biogen shares declined by $13.92 per share to close at $231.69 per share on November 8, 2023.
On January 8, 2024, Biogen’s CEO Christopher A. Viehbacher discussed challenges with the launch of Leqembi, a treatment the Company was developing for Alzheimer’s disease, and walked back prior expectations of having 10,000 patients on the drug by the end of March 2024. On this news, the price of Biogen shares declined by $10.77 per share over three consecutive trading days to close at $247.21 per share on January 11, 2024.
On February 6, 2024, news reports emerged that Eisai, Biogen’s development partner, was facing challenges with the launch of Leqembi and that only 2,000 patients in the U.S. had been administered the drug. On this news, the price of Biogen shares declined by $5.01 per share to close at $240.54 per share on February 7, 2024.
Then, on February 13, 2024, Biogen announced its fourth quarter and fiscal year 2023 results, including Q4 non-GAAP EPS of $2.95, missing consensus estimates by $0.23, and Q4 revenue of $2.4 billion, missing consensus estimates by $60 million and representing a 5.5%, year-over-year decline. Biogen disclosed that Q4 “GAAP and Non-GAAP diluted EPS [was] negatively impacted by $0.35 related to [the] previously disclosed closeout costs for ADUHELM,” confirmed that Biogen had “approximately 2,000 patients on [Leqembi] at the moment,” and that it had “an indication that there are about 3,800 patients as of last week on the registry” – significantly less than the 10,000-patient goal set by Biogen and Eisai for the end of following month, according to the complaint. On this news, the price of Biogen shares declined by $18.09 per share to close at $226.65 per share on February 13, 2024
On February 14, 2024, Biogen disclosed in an SEC filing that it had received a subpoena from the DOJ “seeking information relating to [Biogen’s] business operations in several foreign countries” and that “[t]he Company is also providing information relating to [its] business operations in several foreign countries to the SEC.” On this news, Biogen’s stock price fell $5.91 per share, or 2.61%, to close at $220.74 per share on February 14, 2024.
The lawsuit alleges throughout the Class Period, the Company made false and/or misleading statements and/or failed to disclose that: (i) Biogen had overstated its efforts to enhance its compliance controls; (ii) accordingly, Biogen maintained inadequate compliance controls and procedures in connection with its business operations in foreign countries; (iii) Biogen and/or its employees were engaged in unlawful or improper conduct in foreign countries; (iv) the foregoing subjected the Company to a heightened risk of governmental and/or regulatory scrutiny and enforcement action, as well as significant legal, financial, and reputational harm; (v) Biogen overstated the strength of its AD-related product portfolio, including the Company's and Eisai's efforts and success in launching and providing access to Leqembi; (vi) Biogen also downplayed the negative impact that the Reata Acquisition would have on its FY 2023 non-GAAP diluted EPS; and (vii) all the foregoing were likely to have a significant negative impact on Biogen's 2023 results.
If you purchased or otherwise acquired Biogen securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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