Biogen warned the impact of generics, medication created by rivals to mimic its own brands, could continue to cause revenue declines.
This overshadowed a better than expected financial outlook from the biotech, sending the stock down sharply Wednesday.
Biogen said it expects earnings to be somewhere between $15.25 to $16.75 per share for this year, more than its prior expectation of $14.25 to $16.00 a share. The new guidance is within the analysts' estimates of $15.43 per share.
Revenue expectations were lifted to $9.9 to $10.1 billion versus $9.7 to $10.0 billion earlier. This range also falls within the prediction of $9.83 billion.
But investors seemed to focus on the fact that the guidance – while higher – assumes revenue erosions. The stock fell almost 3% in premarket trading to $214, after rising as much as 2% when the report came out.
The company (ticker: BIIB) said adjusted earnings were $5.25 per share for the second quarter versus analysts' estimates of $4.06, according to FactSet. Revenue of $2.59 billion was higher than predictions of $2.47 billion. A year earlier Biogen reported $2.78 billion in revenue.