Raphael Stevens

Walgreens said it will start working directly with drugmakers to bring cell and gene therapies to U.S. patients as part of a broader effort to expand its specialty pharmacy services.
As the company moves to “transform” its specialty pharmacy services, it will open a newly licensed facility in Pittsburgh dedicated to cell and gene therapy services.
Specialty pharmacies have become a significant player in the U.S. health system, especially as chronic diseases become more prevalent.

A person rides past a Walgreens truck, owned by the Walgreens Boots Alliance, in Manhattan, New York City, on Nov. 26, 2021.
Andrew Kelly | Reuters

Walgreens on Thursday said it will start to work directly with drugmakers to bring cell and gene therapies to U.S. patients as part of a broader expansion of its specialty pharmacy services.
The company said it is launching a new business unit dedicated to its specialty pharmacy segment, which will include specialty pharmacy subsidiary AllianceRx. The unit will fall under its core U.S. retail pharmacy division. Meanwhile, Shields Health Solutions, a subsidiary that supports health system-owned specialty pharmacies, will remain under Walgreens’s U.S. health-care division. 

Specialty pharmacies have become a significant player in the U.S. health system, especially as chronic diseases become more prevalent.
Specialty pharmacies provide medications that require extreme care in handling, storage and distribution. The treatments are often for patients with chronic, rare or complex conditions such as cancer, Crohn’s disease and HIV. Specialty pharmacies also offer counseling or financial assistance designed to support patients taking those costly treatments.
Among the company’s new investments to “transform” its specialty pharmacy services, it will open a newly licensed facility in Pittsburgh dedicated to services for cell and gene therapies. The 18,000-square-foot center will help drugmakers and health-care providers navigate the complex supply chain for those treatments and manage patient needs, among other issues.

Andrew Brookes | Image Source | Getty Images

Walgreens’ decision to launch cell and gene therapy services comes after a surge in approvals of those drugs in the U.S. in the European Union over the last year. They are one-time, high-cost treatments that target a patient’s genetic source or cell to cure or significantly alter the course of a disease. Some health experts expect cell and gene therapies to replace traditional lifelong treatments that people take to manage chronic diseases. 
The U.S. Food and Drug Administration approved seven cell and gene therapies last year, including the first gene therapies to treat sickle cell disease. That market is only expected to grow: The FDA has predicted that it will be reviewing and approving between 10 and 20 cell and gene therapies each year by 2025. 

Walgreens said its newly launched business unit is the largest independent provider of specialty pharmacy services, with approximately $24 billion in revenue from the segment. Walgreens Specialty Pharmacy business is not partnered with a pharmacy benefit manager, the company noted. 
That gives the company “the flexibility to contract dynamically with any payer,” Walgreens Chief Pharmacy Officer Rick Gates said in the release. “We can partner directly with pharmaceutical manufacturers to facilitate products to market, including limited distribution drugs, and coordinate closely with providers to ensure patients experience a smooth start to treatment.” 
Under the new unit, patients of AllianceRx and the company’s nearly 300 community-based pharmacies now have access to resources that will “build upon the expert care they already receive from their specialty pharmacist,” Walgreens said in the release. That includes clinicians with key disease expertise, nutritionists and nurses.
The company said its community-based specialty pharmacies are located near medical office buildings and health systems, offering specialty drugs “faster than industry average” along with services such as injection training and side-effect management. 
Walgreens said it has more than 1,500 specialty pharmacists, 5,000 patient-advocacy support team members and an unspecified number of dedicated specialty pharmacy teams.
The company also offers more than 1,300 specialty drugs, including 240 “limited distribution” drugs that few specialty pharmacies have access to.

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Chipotle Mexican Grill has no plans to open another Farmesa Fresh Eatery after its initial ghost kitchen location closed.
A little over a year ago, Chipotle announced the opening of its first Farmesa location.
Chipotle’s primary focus now is on its own brand, both in the U.S. and outside of it through its burgeoning international business, CEO Brian Niccol said.

Chipotle is launching Farmesa Fresh Eatery first at Kitchen United’s upcoming Santa Monica location.
Source: Chipotle Mexican Grill

Chipotle Mexican Grill is abandoning its Farmesa Fresh Eatery spinoff after partner Kitchen United closed its ghost kitchens.
A little over a year ago, Chipotle announced the opening of its first Farmesa location at Kitchen United’s Santa Monica location. The spinoff’s menu focused on customizable bowls. Its brand name is a portmanteau of “farm” and “mesa,” the Spanish word for table, in an attempt to communicate its farm-to-table approach.

But the Santa Monica ghost kitchen closed in February as its parent company struggled financially.
Curt Garner, Chipotle’s chief customer and technology officer, told CNBC on Wednesday that the company has no plans to open a freestanding version of Farmesa. However, the brand lives on in the company’s innovation lab for new menu items, he said.
Chipotle’s primary focus now is on its own brand, both in the U.S. and outside of it through its burgeoning international business, CEO Brian Niccol said Wednesday on the company’s earnings call.
“Obviously, if the opportunity presents itself where it would make sense for us to do something outside of the brand, so I would never want to say never, but it’s just not a focus for us right now,” he told analysts.
Instead, the company has been focusing on improving its restaurants’ efficiency and speed to boost sales. Chipotle’s first-quarter earnings and revenue topped Wall Street’s estimates on Wednesday.

In November, Kitchen United announced plans to close or sell all of its locations as it pivoted into software. Ghost kitchens, which are also known as cloud or dark kitchens, allow restaurants to prepare food solely for delivery. 
The format’s popularity soared during the pandemic as eateries looked for ways to make food delivery more profitable. But once customers started returning to dining in person and capital grew more expensive, many ghost kitchen startups like Kitchen United found themselves in trouble.
In March, SBE founder Sam Nazarian bought Kitchen United’s remaining locations and intellectual property for an undisclosed sum to create a new company, Everybody Eats. More

Chipotle Mexican Grill topped Wall Street’s expectations for its quarterly earnings, revenue and same-store sales growth.
The burrito chain said traffic increased 5.4% in its first quarter.
In March, Chipotle’s board approved a 50-for-1 stock split, one of the largest in the New York Stock Exchange’s history.

The logo of Chipotle Mexican Grill is seen in Manhattan, New York.
Shannon Stapleton | Reuters

Chipotle Mexican Grill on Wednesday reported quarterly earnings and revenue that beat analysts’ expectations, fueled by higher traffic to its restaurants.
The stock rose 4% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: $13.37 adjusted vs. $11.68 expected
Revenue: $2.7 billion vs. $2.68 billion expected

Chipotle reported first-quarter net income of $359.3 million, or $13.01 per share, up from $291.6 million, or $10.50 per share, a year earlier.
Excluding a 36-cent hit from increases to its legal reserves, the burrito chain earned $13.37 per share.
Net sales climbed 14.1% to $2.7 billion.
The company’s same-store sales rose 7%, topping StreetAccount estimates of 5.2%. Chipotle said traffic increased 5.4% from the year-ago period, while the average check was up just 1.6%.

In February, Chief Financial Officer Jack Hartung told analysts that “unusually cold weather” hurt January sales. But demand rebounded in the rest of the quarter to offset the sluggish first month.
Chipotle has become the rare restaurant chain to report rising transactions despite higher menu prices. The company once again raised its prices in October, citing inflation. Others in the restaurant industry have turned to limited-time offers and deals to appeal to customers, particularly those with lower incomes.
CEO Brian Niccol said the company saw traffic growth across income groups during the quarter. He credited the chain’s value perception among diners. Previously, executives have also emphasized that most of its customers come from higher-income brackets.
Earlier this month, Chipotle raised prices in California roughly 7% to offset the state’s higher minimum wage for fast-food workers, but the company does not have plans for any more hikes, Niccol said on CNBC’s “Closing Bell” on Wednesday.
Chipotle has also been focusing on making its burritos and bowls more quickly, improving the industry metric known as throughput. Niccol said throughput reached its highest level in four years during the first quarter.
The chain added 47 new locations to its footprint during the first quarter, inching closer to its long-term goal of doubling its total number of restaurants to reach 7,000 stores.
For the full year, Chipotle now anticipates same-store sales will grow by a mid-to-high single-digit percentage, up from its prior range of a mid-single-digit increase. The company reiterated its forecast of 285 to 315 new locations in 2024.
In March, Chipotle’s board approved a 50-for-1 stock split, one of the largest in the New York Stock Exchange’s history. The company is seeking shareholder approval at its annual meeting on June 6. If investors vote “yes,” the stock will start trading on a post-split basis on June 26.

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The automaker slightly lowered capital expenditure expectations and raised its adjusted free cash flow outlook for the year.
Ford’s traditional business, known as Ford Blue, reported adjusted earnings that were down 66% compared to a year earlier.
Ford has faced years of inflated warranty costs, which have affected its earnings.

The Ford display at the New York International Auto Show on March 28, 2024. 
Danielle DeVries | CNBC

DETROIT — Sales of Ford Motor trucks and other commercial vehicles led the automaker to beat Wall Street’s earnings estimates for the first quarter, offsetting losses of its electric vehicles.
The company maintained its 2024 earnings guidance of adjusted earnings before interest and taxes, or EBIT, of between $10 billion and $12 billion. It slightly lowered capital expenditure expectations and raised its adjusted free cash flow outlook for the year.

The automaker now expects to generate adjusted free cash flow of $6.5 billion to $7.5 billion, up from a previous outlook of $6 billion to $7 billion. Its forecast for capital expenditures is now $8 billion to $9 billion, narrower than the $8 billion to $9.5 billion range it originally estimated.
Ford Chief Financial Officer John Lawler on Wednesday described the quarter as “solid,” with the company tracking to the higher end of its previously announced guidance.
While the automaker beat earnings estimates, it slightly missed on automotive revenue. Here are the results for Ford’s first quarter, compared with Wall Street expectations, according to LSEG:

Earnings per share: 49 cents adjusted vs. 42 cents expected
Automotive revenue: $39.89 billion vs. $40.10 billion expected

Ford’s overall revenue for the first quarter, including its credit business, increased about 3% year over year to $42.78 billion.
Net income for the period was $1.33 billion, or 33 cents per share, compared with $1.76 billion, or 44 cents, a year earlier. Adjusted EBIT declined 18% year over year to $2.76 billion, or 49 cents per share.

Ford’s traditional business, known as Ford Blue, reported adjusted earnings that were down 66% compared to a year earlier to $905 million. Its Ford Pro commercial business earned $3.01 billion, up 120% from the first quarter of last year. Ford’s Model e electric vehicle unit posted a $1.32 billion loss from January through March.

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2024 Ford vs. GM shares

The notable decline in Ford Blue was related to the launch of the company’s refreshed F-150 pickup, which it held shipments of during most of the quarter to address undisclosed quality issues.
Ford CEO Jim Farley said the company avoided “about 12 recalls” thanks to the additional quality checks during the stop-shipment, helping to lower warranty costs for the company.
“What we’re going to see long-term is less recalls and lower warranty costs because of this new process,” Farley said Wednesday during the company’s first-quarter earnings call. “I’m really proud of the team’s progress and quality and we have so much more to do.”
Ford has faced years of inflated warranty costs, including $1.9 billion in 2023, which have affected its earnings. The company last year said it has a $7 billion to $8 billion annual disadvantage compared to traditional rivals due to production costs, quality issues and other operational inefficiencies.
Ford previously said it assembled 144,000 of the F-150 full-size and Ranger midsize pickups during the first quarter of the year. Those vehicles began shipping to dealers and customers earlier this month. Roughly 92% of the pickups built were F-150s.
As part of its 2024 guidance, first released in February, Ford said it expected its EV business to lose between $5 billion and $5.5 billion this year. Ford Blue earnings were expected to be roughly flat at $7 billion to $7.5 billion for 2024, while Ford Pro was expected to come in around $8 billion to $9 billion for the full year.Lawler said Ford remains on track this year to take $2 billion in costs out of the business through reductions in things such as materials, freight and manufacturing. He said much of those savings will occur during the second half of the year.
Ford’s first-quarter earnings come a day after its crosstown rival General Motors reported strong first-quarter results and raised its full-year guidance.
— CNBC’s Michael Bloom contributed to this report.

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Biogen reported first-quarter profit that topped estimates as the company’s cost-cutting efforts took hold and sales of its closely watched Alzheimer’s drug, Leqembi, came in higher than expected.
Leqembi brought in approximately $19 million in sales for the quarter, up from the $10 million the drug generated last year.
The number of patients on the therapy increased nearly 2.5 times since the end of 2023, according to Biogen.

A test tube is seen in front of displayed Biogen logo in this illustration taken on, December 1, 2021.
Dado Ruvic | Reuters

Biogen on Wednesday reported first-quarter profit that topped estimates as the company’s cost-cutting efforts took hold and sales of its closely watched Alzheimer’s drug, Leqembi, came in higher than expected.
Biogen and Eisai’s Leqembi became the first drug found to slow the progression of Alzheimer’s disease to win approval in the U.S. in July. The treatment’s launch has been sluggish, but uptake appeared to accelerate in the first quarter. 

Leqembi brought in about $19 million in sales for the quarter, up from the $10 million the drug generated last year. That blows past the $11 million analysts had expected, according to estimates compiled by FactSet. 
The number of patients on the therapy increased nearly 2.5 times since the end of 2023, according to Biogen. The company added that the number of new patients who started Leqembi jumped in March, making up more than 20% of the cumulative patients now on the treatment. 
Biogen did not provide a specific number of patients using Leqembi. In February, Biogen CEO Chris Viehbacher told reporters that there were around 2,000 patients currently on Leqembi.
The company hopes the drug and other newly launched products will drive growth as it cuts costs and sees sales plummet for its multiple sclerosis therapies, some of which face generic competition.
Here’s what Biogen reported for the first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

Earnings per share: $3.67 adjusted vs. $3.45 expected
Revenue: $2.29 billion vs. $2.31 billion expected

The biotech company booked sales of $2.29 billion for the quarter, down 7% from the same period a year ago. It reported net income of $393.4 million, or $2.70 per share, for the first quarter, up from net income of $387.9 million, or $2.67 per share, for the same period a year ago. 
Adjusting for one-time items, the company reported earnings of $3.67 per share.
Biogen reiterated its full-year 2024 adjusted earnings forecast of $15 to $16 per share. Analysts surveyed by LSEG had expected full-year earnings guidance of $15.49 per share. 
The company also reiterated its 2024 sales guidance of a low- to mid-single-digit percentage decline compared with last year. 

Newly launched drugs top estimates

Apart from Leqembi, investors also have their eyes on other newly launched drugs. 
That includes Skyclarys, brought in by Biogen’s acquisition of Reata Pharmaceuticals in July. That drug notched $78 million in first-quarter revenue.
Analysts had expected sales of $68.8 million, according to FactSet estimates. 
The Food and Drug Administration cleared Skyclarys last year, making it the first approved treatment for Friedreich’s ataxia, a rare inherited degenerative disease that can impair walking and coordination in children as young as 5. In February, European Union regulators approved Skyclarys for the treatment of Friedreich’s ataxia in patients ages 16 and up. 
Biogen has also partnered with Sage Therapeutics on the first pill for postpartum depression, which won FDA approval in August. But the agency declined to clear the drug for major depressive disorder, which is a far larger market. 
Biogen said that pill, called Zurzuvae, generated first-quarter sales of $12 million. Analysts had expected just $5 million in sales of that drug, FactSet said.

Multiple sclerosis drugs, other treatments

Meanwhile, Biogen’s first-quarter revenue from multiple sclerosis products fell 4% to $1.08 billion as some of its therapies face competition from cheaper generics. 
The company’s once-blockbuster drug Tecfidera, which is facing competition from a generic rival, posted revenue of $254.3 million in the first quarter, down from $274.5 million from the same period a year ago. 
Still, that came in higher than analysts’ estimate of $227.7 million, according to FactSet. 
Vumerity, an oral medication for relapsing forms of multiple sclerosis, generated $127.5 million in sales. That came in below analysts’ estimates of $137.9 million, FactSet estimates said. 

More CNBC health coverage

Biogen’s rare disease drugs recorded $423.9 million in sales, down from the $443.3 million in the same period a year ago. 
Spinraza, a medication used to treat a rare neuromuscular disorder called spinal muscular atrophy, recorded $341.3 million in sales. That came under analysts’ estimate of $415.1 million in revenue, according to FactSet. 
Biogen said the timing of Spinraza shipments and increased competition affected first-quarter revenue comparisons outside of the U.S.
The company’s biosimilar drugs booked $196.9 million in sales, up slightly from the $192.4 million reported during the year-earlier period. Analysts had expected sales of $192.5 million from those medicines.
Correction: Skyclarys had $78 million in first-quarter revenue. An earlier version misstated the quarter.

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