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Biogen Gears Up to Report Q2 Earnings: Here's What to Expect

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Key Takeaways

  • BIIB's Q2 results may reflect weaker MS drug sales but growth from newer products.
  • Leqembi and Zurzuvae revenues are likely to have risen in the second quarter.
  • Skyclarys faced mixed dynamics across U.S. and global markets

Biogen (BIIB - Free Report) will report second-quarter 2025 results on July 31, before market open. In the last reported quarter, the company's earnings missed expectation by 7.4%. The Zacks Consensus Estimate for second-quarter sales and earnings is pegged at $2.32 billion and $3.95 per share, respectively.

Factors to Consider for Biogen

In the second quarter, lower sales of Biogen’s multiple sclerosis (“MS”) drugs are likely to have been offset by sequential revenue growth from new products.

Sales of Biogen’s MS drugs like Tecfidera and Tysabri are likely to have declined due to generic competition for Tecfidera globally and biosimilar competition to Tysabri in Europe and rising competitive pressure in the MS market. Biosimilar versions of Tysabri are expected to be launched in the United States in the fourth quarter of 2025.

The Zacks Consensus Estimate and our model estimate for second-quarter sales of Tecfidera are pegged at $178.0 million and $173.9 million, respectively.

The Zacks Consensus Estimate and our estimate for Tysabri are pegged at $373.0 million and $395.5 million, respectively.

Sales of another MS drug Vumerity are expected to have risen due to higher demand. The Zacks Consensus Estimate and our estimate for Vumerity are pegged at $70.0 million and $181.9 million, respectively.

Around 45% of Biogen’s product revenues are derived from key drugs outside the MS business.

Sales of Biogen’s spinal muscular atrophy drug, Spinraza, rose in the first quarter due to the favorable timing of shipments in ex-U.S. markets, which is likely to have reversed in the second quarter.  In the United States, higher pricing offset the negative impact of a decrease in demand, a trend likely to have continued in the second quarter.

The Zacks Consensus Estimate and our estimate for Spinraza are pegged at $397.0 million and $403.0 million, respectively.

Though sales of Biogen’s newly launched drug Skyclarys for Friedreich’s ataxia are likely to have benefited from continued geographic expansion outside the United States, some Medicare discount dynamics might have tempered sequential growth in the United States. Ex-U.S. sales are expected to be a more important driver of growth for Skyclarys in 2025.

Another new drug, Zurzuvae’s sales are likely to have continued to rise on a sequential basis backed by strong patient demand.

Biogen has a collaboration with Sage Therapeutics (SAGE - Free Report) for Zurzuvae. Biogen and Sage equally share profits and losses for the commercialization of Zurzuvae in the United States. At the same time, in outside U.S. markets, Biogen records product sales (excluding Japan, Taiwan, and South Korea) and pays royalties to Sage. Zurzuvae has not yet been approved in the EU. Supernus Pharmaceuticals (SUPN - Free Report) is acquiring Sage Therapeutics in a deal valued at up to $795 million. 

Contract manufacturing and royalty revenues and Alzheimer’s collaboration revenues are expected to have risen in the quarter. Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Alzheimer’s drug Leqembi (lecanemab), which has been developed in collaboration with Eisai.

Leqembi sales improved sequentially in the last three quarters with the positive trend expected to have continued in the second quarter. Leqembi sales are recorded by Eisai. Leqembi has already been launched in the United States, Japan, China and some other countries. Leqembi was approved in Europe in April 2025

A less frequent maintenance intravenous dosing version of Leqembi was approved by the FDA in January 2025 while a regulatory application for the subcutaneous autoinjector is under review with a decision from the FDA expected on Aug. 31, 2025.

BIIB’s Earnings Surprise History

The company’s earnings beat estimates in three of the last four quarters while missing on one. The company has a four-quarter earnings surprise of 8.36%, on average.

Biogen’s stock has declined 14.0% so far this year against an increase of 3.2% for the industry.

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What Our Model Says for BIIB

Our proven model does not conclusively predict an earnings beat for Biogen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: Biogen’s Earnings ESP is -0.85%. The Zacks Consensus Estimate is pegged at $3.95 per share, while the Most Accurate Estimate is pegged lower at $3.91 per share. You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

Zacks Rank: Biogen has a Zacks Rank #4 (Sell).

Stock to Consider

A drug/biotech stock that has the right combination of elements to beat on earnings this time around:

Eli Lilly & Company (LLY - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lilly’s stock has risen 5.7% so far this year. LLY beat earnings estimates in two of the last four quarters while missing in the remaining two. On average, Lilly witnessed an earnings surprise of 6.69% in the last four quarters. Lilly is scheduled to release its second-quarter results on Aug. 7.

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