Biogen will experience modest growth despite dominance in multiple sclerosis.
By Armando Uribe, Analytics Analyst
13 May 2016
Datamonitor Healthcare forecasts Biogen’s pharmaceutical revenues to continue to grow at a compound annual growth rate (CAGR) of 1.2% – from $10.5bn in 2015 to $11.9bn by 2025. Biogen will retain its focus on the lucrative multiple sclerosis (MS) market, where its portfolio, including the new launches of Tecfidera (dimethyl fumarate) and Plegridy (peginterferon beta-1a), will amount to 79% of the company’s total sales in 2025. Although Tecfidera and Plegridy continue to expand Biogen’s position in the MS market, growth has been partially driven by the cannibalization of Avonex’s market share. Biogen expects that Avonex revenues will continue to decline as a result of competition from their own products and for this reason, Datamonitor Healthcare expects Biogen’s central nervous system portfolio to grow modestly at a compound annual growth rate of 0.8% out to 2025.
Biogen entered the hemophilia A and B markets successfully through its collaboration with Swedish Orphan Biovitrum (SOBI) and the consecutive 2014 launches of two new drugs, Eloctate (efraloctocog alfa) and Alprolix (eftrenonacog alfa). Biogen’s first-to-market, long-acting formulations for prophylaxis treatment have experienced a fast uptake but face strong competition in the near future. Datamonitor Healthcare forecasts that the therapy area will be worth $1.5bn in 2025, when it will account for 14% of the company’s total pharmaceutical sales.
Biogen has recently announced that it intends to spin-off its hemophilia business in late 2016 or early 2017. Biogen noted that the hemophilia business has matured and the company additionally has a pipeline that needs to be developed aggressively. The goal of the spin-off is to use strategic capital allocation to pursue priorities specific to each core therapy area. Biogen also noted that the spin-off does not change its current strategy of looking for opportunities for both in-licensing deals and M&A opportunities.
Datamonitor Healthcare’s company analysis on Biogen explores global corporate strategy, marketed portfolio, pipeline potential, and financial performance over 2015–25.
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