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Biogen's Q2 Earnings & Sales Beat, 2025 Outlook Raised, Stock Up
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Key Takeaways
BIIB's Q2 EPS of $5.47 and revenues of $2.65B beat estimates, driven by new drugs.
Vumerity, Leqembi, and Zurzuvae showed strong demand and sequential sales growth in the quarter.
BIIB raised its 2025 EPS outlook to $15.50-$16.00 and now sees flat full-year revenue versus prior decline.
Biogen (BIIB - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $5.47, which significantly beat the Zacks Consensus Estimate of $3.93. Earnings rose 4% year over year on a reported basis.
Total revenues in the second quarter came in at $2.65 billion, up 7% year over year on a reported basis and 8% on a constant-currency basis. Lower sales of Biogen’s key multiple sclerosis (MS) drugs like Tecfidera and Tysabri were offset by higher revenues from new drugs. Sales of the spinal muscular atrophy (SMA) drug, Spinraza, also declined in the quarter. Revenues beat the Zacks Consensus Estimate of $2.32 billion.
BIIB’s Q2 Revenues in Detail
Product sales in the quarter were $1.9 billion, down 1% on a reported as well as constant currency basis.
Revenues from anti-CD20 therapeutic programs rose 5% to $467 million. The revenues include royalties on sales of Roche’s (RHHBY - Free Report) Ocrevus and Biogen’s share of Roche’s drugs, Rituxan, Gazyva and Lunsumio.
Contract manufacturing and royalty revenues surged 124% year over year on a reported basis to $245 million. Alzheimer’s collaboration revenues were $55 million compared with $12 million in the year-ago 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. Eisai recorded nearly $160 million in global revenues from Leqembi sales in the second quarter, significantly higher than $96 million in the previous quarter. However, the global sales included a one-time shipment of approximately $35 million to China. U.S. sales of its Leqembi were $63 million, representing a sequential increase of 20%.
Leqembi has been launched in the United States, Japan, China, and some other countries and was approved in the European Union in April.
BIIB’s Q2 MS Revenues Decline
Biogen’s MS revenues totaled $1.1 billion, down 4% on a reported as well as constant-currency basis due to generic competition for Tecfidera globally, biosimilar competition for Tysabri in Europe and rising competitive pressure in the MS market.
Tecfidera sales declined almost 23% to $193.6 million as multiple generic versions of the drug have been launched globally. Tecfidera sales beat the Zacks Consensus Estimate of $178.0 million and our model estimate of $173.9 million.
Vumerity recorded $212.2 million in sales, up around 30% year over year due to higher demand. Vumerity sales beat the Zacks Consensus Estimate of $170 million and our model estimate of $181.9 million.
Tysabri sales declined 1.6% year over year to $454.6 million, hurt by increased competition in the United States and biosimilar launches in Europe. Tysabri's sales beat the Zacks Consensus Estimate of $373 million and our model estimate of $395.5 million.
Combined interferon revenues (Avonex and Plegridy) in the quarter were $246.7 million, down 1.7% due to a continued shift from the injectable platform to oral or high-efficacy therapies.
BIIB’s Rare Disease Drugs Sales Improve
Sales of Spinraza declined 8.5% to $392.7 million. The figure missed the Zacks Consensus Estimate of $397 million and our estimate of $403.0 million.
Rare disease drug Skyclarys generated sales of $130.3 million, up 5.2% sequentially, driven by continued demand growth and geographic expansion outside the United States. In the United States, revenues rose 13% on a sequential basis.
New drug Qalsody recorded sales of $20.0 million compared with $15.5 million in the previous quarter.
Performance of BIIB’s Other Products
New drug Zurzuvae (for postpartum depression) recorded $46.4 million in sales in the second quarter of 2025, up 68% on a sequential basis, driven by an increase in demand.
Biogen has a collaboration with Sage Therapeutics (SAGE - Free Report) for Zurzuvae.
BIIB and SAGE equally share profits and losses for the commercialization of Zurzuvae in the United States. At the same time, 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. The acquisition of SAGE by SUPN is expected to close in the third quarter of 2025.
Biosimilar revenues declined 8% year over year to $182.0 million in the second quarter.
BIIB’s Q2 Cost Discussion
Adjusted research and development (R&D) expenses declined 13% year over year to $394.0 million, driven by the company’s cost-saving initiatives under its “Fit for Growth” program and savings from the R&D portfolio prioritization efforts. Adjusted selling, general and administrative (SG&A) expenses rose 7% to $579 million due to higher costs to support the new product launches, partially offset by cost savings under the “Fit for Growth” program.
BIIB Ups 2025 Sales and EPS Guidance
Total revenues in 2025 are expected to be approximately flat in constant currency terms versus the 2024 level, reflecting an improvement from the prior expectation of a decline by a mid-single-digit percentage. Biogen believes that its U.S. MS sales were better than expected in the first half, driven by demand for Vumerity, as well as favorable gross-to-net adjustments and favorable inventory timing. However, the MS revenue decline is expected to be steeper in the second half due to increased competitive pressure on the ex-U.S. MS business.
The adjusted earnings guidance was raised from $14.50-$15.50 per share to $15.50-$16.00 per share.
Biogen raised the adjusted EPS guidance for 2025 to reflect ~ 87 cents benefit from a stronger business outlook, partially offset by ~12 cents adverse impact related to the recent City Therapeutics deal.
Combined R&D and SG&A costs are expected to be around $4.0 billion in 2025, up from the prior expectation of $3.9 billion.
Our Take on BIIB’s Q2 Results
Biogen’s second-quarter results were strong as it beat estimates for both earnings and sales. Sales of key MS drugs, Tecfidera, Vumerity and Tysabri beat estimates. Biogen’s new drugs, Leqembi, Skyclarys and Zurzuvae showed strong sequential growth.
Backed by a strong first-half revenue performance and an improved business outlook for the second half of the year, Biogen raised its total revenue and earnings guidance for 2025.
The impressive guidance increase and solid sales of its Alzheimer’s drug, Leqembi, boosted investor confidence in the stock, which explains the stock’s more than 5% rise in pre-market trading on Thursday.
So far this year, the stock has declined 17.2% against the industry’s 2.2% increase.
Image Source: Zacks Investment Research
Biogen’s MS drugs and Spinraza are seeing rising competitive pressure. However, new products, Leqembi, Skyclarys and Zurzuvae, have the potential to revive growth. Sales of all these new products are improving sequentially. However, it remains to be seen if its new drugs generate enough sales to make up for the declining revenues of MS drugs and Spinraza.
Biogen has also strengthened its mid-to-late-stage pipeline with M&A deals and is rapidly expanding and advancing its late-stage pipeline. In February 2025, Biogen in-licensed outside-U.S. rights to Stoke Therapeutics’ pipeline candidate, zorevunersen, for the treatment of Dravet syndrome. The deal will broaden Biogen’s rare disease pipeline.
Image: Bigstock
Biogen's Q2 Earnings & Sales Beat, 2025 Outlook Raised, Stock Up
Key Takeaways
Biogen (BIIB - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $5.47, which significantly beat the Zacks Consensus Estimate of $3.93. Earnings rose 4% year over year on a reported basis.
Total revenues in the second quarter came in at $2.65 billion, up 7% year over year on a reported basis and 8% on a constant-currency basis. Lower sales of Biogen’s key multiple sclerosis (MS) drugs like Tecfidera and Tysabri were offset by higher revenues from new drugs. Sales of the spinal muscular atrophy (SMA) drug, Spinraza, also declined in the quarter. Revenues beat the Zacks Consensus Estimate of $2.32 billion.
BIIB’s Q2 Revenues in Detail
Product sales in the quarter were $1.9 billion, down 1% on a reported as well as constant currency basis.
Revenues from anti-CD20 therapeutic programs rose 5% to $467 million. The revenues include royalties on sales of Roche’s (RHHBY - Free Report) Ocrevus and Biogen’s share of Roche’s drugs, Rituxan, Gazyva and Lunsumio.
Contract manufacturing and royalty revenues surged 124% year over year on a reported basis to $245 million. Alzheimer’s collaboration revenues were $55 million compared with $12 million in the year-ago 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. Eisai recorded nearly $160 million in global revenues from Leqembi sales in the second quarter, significantly higher than $96 million in the previous quarter. However, the global sales included a one-time shipment of approximately $35 million to China. U.S. sales of its Leqembi were $63 million, representing a sequential increase of 20%.
Leqembi has been launched in the United States, Japan, China, and some other countries and was approved in the European Union in April.
BIIB’s Q2 MS Revenues Decline
Biogen’s MS revenues totaled $1.1 billion, down 4% on a reported as well as constant-currency basis due to generic competition for Tecfidera globally, biosimilar competition for Tysabri in Europe and rising competitive pressure in the MS market.
Tecfidera sales declined almost 23% to $193.6 million as multiple generic versions of the drug have been launched globally. Tecfidera sales beat the Zacks Consensus Estimate of $178.0 million and our model estimate of $173.9 million.
Vumerity recorded $212.2 million in sales, up around 30% year over year due to higher demand. Vumerity sales beat the Zacks Consensus Estimate of $170 million and our model estimate of $181.9 million.
Tysabri sales declined 1.6% year over year to $454.6 million, hurt by increased competition in the United States and biosimilar launches in Europe. Tysabri's sales beat the Zacks Consensus Estimate of $373 million and our model estimate of $395.5 million.
Combined interferon revenues (Avonex and Plegridy) in the quarter were $246.7 million, down 1.7% due to a continued shift from the injectable platform to oral or high-efficacy therapies.
BIIB’s Rare Disease Drugs Sales Improve
Sales of Spinraza declined 8.5% to $392.7 million. The figure missed the Zacks Consensus Estimate of $397 million and our estimate of $403.0 million.
Rare disease drug Skyclarys generated sales of $130.3 million, up 5.2% sequentially, driven by continued demand growth and geographic expansion outside the United States. In the United States, revenues rose 13% on a sequential basis.
New drug Qalsody recorded sales of $20.0 million compared with $15.5 million in the previous quarter.
Performance of BIIB’s Other Products
New drug Zurzuvae (for postpartum depression) recorded $46.4 million in sales in the second quarter of 2025, up 68% on a sequential basis, driven by an increase in demand.
Biogen has a collaboration with Sage Therapeutics (SAGE - Free Report) for Zurzuvae.
BIIB and SAGE equally share profits and losses for the commercialization of Zurzuvae in the United States. At the same time, 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. The acquisition of SAGE by SUPN is expected to close in the third quarter of 2025.
Biosimilar revenues declined 8% year over year to $182.0 million in the second quarter.
BIIB’s Q2 Cost Discussion
Adjusted research and development (R&D) expenses declined 13% year over year to $394.0 million, driven by the company’s cost-saving initiatives under its “Fit for Growth” program and savings from the R&D portfolio prioritization efforts. Adjusted selling, general and administrative (SG&A) expenses rose 7% to $579 million due to higher costs to support the new product launches, partially offset by cost savings under the “Fit for Growth” program.
BIIB Ups 2025 Sales and EPS Guidance
Total revenues in 2025 are expected to be approximately flat in constant currency terms versus the 2024 level, reflecting an improvement from the prior expectation of a decline by a mid-single-digit percentage. Biogen believes that its U.S. MS sales were better than expected in the first half, driven by demand for Vumerity, as well as favorable gross-to-net adjustments and favorable inventory timing. However, the MS revenue decline is expected to be steeper in the second half due to increased competitive pressure on the ex-U.S. MS business.
The adjusted earnings guidance was raised from $14.50-$15.50 per share to $15.50-$16.00 per share.
Biogen raised the adjusted EPS guidance for 2025 to reflect ~ 87 cents benefit from a stronger business outlook, partially offset by ~12 cents adverse impact related to the recent City Therapeutics deal.
Combined R&D and SG&A costs are expected to be around $4.0 billion in 2025, up from the prior expectation of $3.9 billion.
Our Take on BIIB’s Q2 Results
Biogen’s second-quarter results were strong as it beat estimates for both earnings and sales. Sales of key MS drugs, Tecfidera, Vumerity and Tysabri beat estimates. Biogen’s new drugs, Leqembi, Skyclarys and Zurzuvae showed strong sequential growth.
Backed by a strong first-half revenue performance and an improved business outlook for the second half of the year, Biogen raised its total revenue and earnings guidance for 2025.
The impressive guidance increase and solid sales of its Alzheimer’s drug, Leqembi, boosted investor confidence in the stock, which explains the stock’s more than 5% rise in pre-market trading on Thursday.
So far this year, the stock has declined 17.2% against the industry’s 2.2% increase.
Image Source: Zacks Investment Research
Biogen’s MS drugs and Spinraza are seeing rising competitive pressure. However, new products, Leqembi, Skyclarys and Zurzuvae, have the potential to revive growth. Sales of all these new products are improving sequentially. However, it remains to be seen if its new drugs generate enough sales to make up for the declining revenues of MS drugs and Spinraza.
Biogen has also strengthened its mid-to-late-stage pipeline with M&A deals and is rapidly expanding and advancing its late-stage pipeline. In February 2025, Biogen in-licensed outside-U.S. rights to Stoke Therapeutics’ pipeline candidate, zorevunersen, for the treatment of Dravet syndrome. The deal will broaden Biogen’s rare disease pipeline.
BIIB’s Zacks Rank
Biogen currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen Inc. Price and Consensus
Biogen Inc. price-consensus-chart | Biogen Inc. Quote