Biogen Inc.

NASDAQ Global Select
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Somewhat Bullish +50

Biogen beats estimates as Alzheimer’s drug gains momentum

📈 Biogen's first-quarter revenue rose 2 percent to $2.5 billion, exceeding analyst expectations.

💰 Adjusted earnings per share increased 18 percent to $3.57, driven by strong Alzheimer’s drug performance.

🧠 Leqembi generated $168 million in sales, a 74 percent increase year-over-year as the Alzheimer’s treatment gains momentum.

⚖️ Biogen is facing competition from generic rivals for its multiple sclerosis franchise, which accounts for about half of product revenue.

📉 The company cut its full-year adjusted earnings forecast to between $14.25 and $15.25 per share due to recent deal-related charges.

🐼 Skyclarys, a treatment for Friedreich's ataxia, achieved $151 million in sales, surpassing analyst estimates.

💉 Spinraza sales reached $374 million, with US regulators recently approving a high-dose version to help compete with Novartis' gene therapy.

🏦 Biogen shares rose 6 percent on Wednesday following the better-than-expected financial results.

📜 The company is awaiting an FDA decision next month on at-home injectable versions of Leqembi that could further accelerate sales.

🤝 CEO Christopher Viehbacher stated the firm no longer needs to pursue large acquisitions after closing its $5.6 billion purchase of Apellis Pharmaceuticals.

🔬 Biogen recently acquired rights to sell felzartamab in China for rare immune conditions, which is impacting this quarter's profitability.

📉 Management maintains a forecast for mid-single-digit sales declines this year compared to 2025 due to ongoing MS drug decline.

💼 Biogen continues its strategy of cost-cutting measures, including job reductions and removing drugs from its pipeline.

Bullish Signals
  • Biogen's first-quarter sales and profit beat expectations, demonstrating that its Alzheimer's drug Leqembi is effectively offsetting pressure on its multiple sclerosis franchise.
  • Adjusted earnings grew 18 percent to $3.57 a share, driven by strong growth in the Leqembi segment which generated $168 million in sales.
  • Leqembi sales surged 74 percent year-over-year and are showing real momentum as access barriers decline and patient awareness increases.
  • Upcoming FDA approval of a more convenient at-home injectable version of Leqembi could further accelerate sales for Alzheimer's patients.
  • Skyclarys, a treatment for Friedreich's ataxia, generated $151 million in sales, significantly topping analysts' expectations.
  • US regulators approved a high-dose version of Spinraza for spinal muscular atrophy, providing a competitive boost against Novartis AG.
  • Biogen successfully acquired Apellis Pharmaceuticals Inc. to expand its portfolio in immunology and rare diseases, with the deal expected to close in the second quarter.
  • CEO Christopher Viehbacher confirmed the company no longer needs larger acquisitions after the Apellis deal, allowing focus on early-stage drug pipeline development.
Risk Factors
  • The company cut its full-year profit forecast to between $14.25 and $15.25 a share, representing a decline from the previously expected range of $15.25 to $16.25.
  • Biogen maintains its expectation that sales will continue to fall by mid-single-digit percentages in 2025 due to the inevitable decline of its multiple sclerosis drug franchise.
  • The company recently agreed to purchase Apellis Pharmaceuticals Inc. for $5.6 billion, a massive acquisition that adds significant integration risk and capital outflow.
  • Sales of Spinraza were just shy of analysts' expectations, indicating some weakness in this key product line as competition from Novartis AG intensifies.
  • Leqembi's growth has been constrained by logistical challenges within the healthcare system and ongoing rivalry from Eli Lilly & Co.'s treatments.
  • Biogen is continuing to cut jobs and remove drugs from its pipeline to save money, signaling underlying financial pressure despite recent beat on estimates.
  • Recent charges related to securing rights for felzartamab in China are already impacting earnings and likely represent further headwinds or one-time costs that could recur.
Full Analysis
Biogen Inc. reported better-than-expected first-quarter sales and profits, indicating that progress on its Alzheimer's therapies and cost-reduction strategies are helping to counteract pressures within its multiple sclerosis (MS) franchise. Revenue increased 2 percent to $2.5 billion, while adjusted earnings climbed 18 percent to $3.57 per share. Leqembi, the company's highly anticipated Alzheimer's treatment approved in 2023, was a key driver of this growth, generating $168 million in sales—a 74 percent increase from the prior-year period. Although the drug faced initial hurdles related to healthcare logistics and competition from Eli Lilly & Co., analysts note that Leqembi is finally gaining momentum as accessibility improves and patient awareness grows. BMO Capital Markets analyst Evan Seigerman commented that Leqembi sales are "starting to show real momentum" under these conditions. Market sentiment responded positively, with Biogen shares rising 6 percent during Wednesday's trading session and up 4 percent for the year as of Tuesday's close. Future growth potential hinges partly on regulatory approval next month for an at-home injectable version of Leqembi designed to improve convenience for patients. Despite this win, Biogen lowered its full-year profit guidance due to charges from recent transactions. The adjusted earnings outlook was revised downward to a range of $14.25 to $15.25 per share, down from the previous expectation of $15.25 to $16.25. This revision includes charges related to securing rights in China for felzartamab, a drug under investigation for rare immune conditions, and notably excludes any financial impact from its $5.6 billion acquisition of Apellis Pharmaceuticals Inc., which is expected to close in the second quarter. The company maintained its projection that full-year sales will decline by a mid-single-digit percentage compared to 2025 due to the inevitable erosion of revenue from MS drugs facing generic competition. However, Biogen has pursued diversification and cost management under CEO Christopher Viehbacher, including job cuts, pipeline streamlining, and strategic acquisitions like Apellis to expand offerings in immunology and rare diseases. Beyond Alzheimer's and MS, other rare disease therapies performed well: Skyclarys, used for Friedreich’s ataxia, generated $151 million in sales and beat analyst expectations. Similarly, Spinraza, which treats spinal muscular atrophy, produced $374 million in sales, approaching estimates even as the company navigates competition from a gene therapy approved for high-dose versions by US regulators.