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Biogen Beats Q1 Earnings Estimates but Cuts 2026 EPS View on M&A Costs
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Key Takeaways
Biogen reports Q1 EPS of $3.57 and revenues of $2.48B, both beating estimates, with earnings up 18% y/y.
BIIB faces MS and Spinraza sales pressure from generics and competition, partly offset by newer drugs.
Biogen lowers 2026 EPS outlook to reflect M&A costs while maintaining revenue guidance
Biogen (BIIB - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $3.57, which significantly beat the Zacks Consensus Estimate of $2.95. Earnings rose 18% year over year.
The adjusted EPS included a 19 cents per share impact of IPR&D charges related to license agreements.
Total revenues during the quarter came in at $2.48 billion, up 2% year over year on a reported basis. However, revenues declined 2% on a constant-currency basis. Revenues beat the Zacks Consensus Estimate of $2.25 billion.
Lower sales of key drugs like Tecfidera for multiple sclerosis (MS) and Spinraza for spinal muscular atrophy (SMA) were partially offset by higher revenues from new drugs driving by rising demand trends. Improved inventory dynamics also benefited sales of MS drugs like Tysabri and Vumerity in the quarter.
More on BIIB’s Earnings
Product sales in the quarter were $1.75 billion, down 3% year over year on a constant currency basis.
Revenues from anti-CD20 therapeutic programs rose 11% to $419 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 declined 20% year over year to $247.0 million. Alzheimer’s collaboration revenues were $60 million, up 80% year over year.
Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Alzheimer’s disease (AD) drug Leqembi (lecanemab), which has been developed in collaboration with Eisai. Eisai recorded nearly $168 million in global revenues from Leqembi sales in the first quarter, up 74% year over year and 25% sequentially, driven by demand growth globally. The drug’s U.S. sales rose 10.3% quarter over quarter to $86 million.
BIIB’s MS Revenues Continue to Decline
Biogen’s MS revenues totaled $958 million, down 3% on a constant-currency basis, due to generic competition for Tecfidera globally and Tysabri in Europe and rising competitive pressure in the MS market.
Vumerity recorded $179 million in sales, up around 29% year over year, driven by strong demand and improved inventory dynamics in the United States. This metric beat the Zacks Consensus Estimate of $164 million.
Tecfidera sales declined 47% to around $109.5 million, as multiple generic versions of the drug have been launched globally. The drug’s sales also missed the Zacks Consensus Estimate of $111 million.
Tysabri sales rose 15.7% year over year to $441.5 million as the impact of biosimilar competition in Europe was offset by favorable adjustments to discounts and allowances and the favorable impact of inventory timing. The drug’s sales beat the Zacks Consensus Estimate of $359 million.
Combined interferon revenues (Avonex and Plegridy) were almost flat year over year at about $227.5 million.
Performance of BIIB’s Rare Disease Drugs
Sales of Spinraza declined around 12% to $374 million. The figure missed the Zacks Consensus Estimate of $379 million.
Rare disease drug Skyclarys generated sales of $150.7 million, up 21.6% year over year, driven by continued demand growth.
Qalsody added sales of $32.5 million, up more than 100% year over year, driven by demand growth.
Other Products
New drug Zurzuvae (for postpartum depression) recorded sales of nearly $55.4 million in the quarter, down 16% on a sequential basis as demand growth was partially offset by inventory dynamics.
Biogen has a collaboration with Supernus Pharmaceuticals (SUPN - Free Report) for Zurzuvae. Biogen and Supernus Pharmaceuticals equally share profits and losses for the commercialization of Zurzuvae in the United States. In outside U.S. markets, Biogen records product sales (excluding Japan, Taiwan and South Korea) and pays royalties to Supernus.
Biosimilar revenues declined 7% year over year to $182 million during the quarter.
BIIB’s Cost Rise
Adjusted research and development (R&D) expenses rose 13% year over year to $480 million due to increased costs behind the company’s late-stage candidates like litifilimab and felzartamab.
Adjusted selling, general and administrative (SG&A) expenses rose 5% to $600 million due to higher costs to support the new product launches.
BIIB's 2026 Guidance
Biogen maintained its revenue guidance for the year while lowering its earnings guidance to include IPR&D charges related to M&A activities.
Total revenues are expected to decline by a mid-single-digit percentage in constant currency terms in 2026 from the 2025 level. A decline in MS revenues (excluding Vumerity) is expected to be partially offset by higher revenues from growth products.
Adjusted EPS guidance was lowered from a range of $15.25 to $16.25 to $14.25 to $15.25.
The gross margin in 2026 is expected to be similar to the 2025 levels. Combined adjusted R&D and SG&A costs are also expected to be similar to 2025 levels.
Our Take on BIIB’s Results
Biogen delivered better-than-expected first-quarter results as it beat estimates for both earnings and sales. Shares were up more than 2% in pre-market trading despite the company slashing its full-year earnings guidance to include costs related to M&A deals.
In the past year, the stock has risen 51.5% compared with the industry’s 15.1% growth.
Image Source: Zacks Investment Research
While Biogen’s MS drugs and Spinraza are seeing rising competitive pressure, the company’s newer products — Leqembi, Zurzuvae, Skyclarys and Qalsody — have the potential to return the company to revenue growth. All these new products are showing signs of growth. Sales of Biogen’s growth products (Skyclarys, Qalsody, Zurzuvae, Vumerity and Spinraza) rose 12% in the quarter.
Biogen has also strengthened its mid-to-late-stage neurology and immunology pipeline with M&A deals.
At the end of March, Biogen announced a definitive agreement to acquire Apellis Pharmaceuticals (APLS - Free Report) for approximately $5.6 billion in cash at closing. The deal will add APLS’ two commercialized medicines in immune-mediated retinal disease and nephrology — Empaveli and Syfovre — to Biogen’s portfolio. The drugs complement Biogen’s key late-stage pipeline candidate, felzartamab, which is being developed for kidney disease. The transaction is expected to be closed in the second quarter of this year. The EPS guidance for 2026 does not include any costs related to the Apellis transaction.
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Biogen Beats Q1 Earnings Estimates but Cuts 2026 EPS View on M&A Costs
Key Takeaways
Biogen (BIIB - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $3.57, which significantly beat the Zacks Consensus Estimate of $2.95. Earnings rose 18% year over year.
The adjusted EPS included a 19 cents per share impact of IPR&D charges related to license agreements.
Total revenues during the quarter came in at $2.48 billion, up 2% year over year on a reported basis. However, revenues declined 2% on a constant-currency basis. Revenues beat the Zacks Consensus Estimate of $2.25 billion.
Lower sales of key drugs like Tecfidera for multiple sclerosis (MS) and Spinraza for spinal muscular atrophy (SMA) were partially offset by higher revenues from new drugs driving by rising demand trends. Improved inventory dynamics also benefited sales of MS drugs like Tysabri and Vumerity in the quarter.
More on BIIB’s Earnings
Product sales in the quarter were $1.75 billion, down 3% year over year on a constant currency basis.
Revenues from anti-CD20 therapeutic programs rose 11% to $419 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 declined 20% year over year to $247.0 million. Alzheimer’s collaboration revenues were $60 million, up 80% year over year.
Alzheimer’s collaboration revenues include Biogen’s 50% share of net product revenues and cost of sales (including royalties) from Alzheimer’s disease (AD) drug Leqembi (lecanemab), which has been developed in collaboration with Eisai. Eisai recorded nearly $168 million in global revenues from Leqembi sales in the first quarter, up 74% year over year and 25% sequentially, driven by demand growth globally. The drug’s U.S. sales rose 10.3% quarter over quarter to $86 million.
BIIB’s MS Revenues Continue to Decline
Biogen’s MS revenues totaled $958 million, down 3% on a constant-currency basis, due to generic competition for Tecfidera globally and Tysabri in Europe and rising competitive pressure in the MS market.
Vumerity recorded $179 million in sales, up around 29% year over year, driven by strong demand and improved inventory dynamics in the United States. This metric beat the Zacks Consensus Estimate of $164 million.
Tecfidera sales declined 47% to around $109.5 million, as multiple generic versions of the drug have been launched globally. The drug’s sales also missed the Zacks Consensus Estimate of $111 million.
Tysabri sales rose 15.7% year over year to $441.5 million as the impact of biosimilar competition in Europe was offset by favorable adjustments to discounts and allowances and the favorable impact of inventory timing. The drug’s sales beat the Zacks Consensus Estimate of $359 million.
Combined interferon revenues (Avonex and Plegridy) were almost flat year over year at about $227.5 million.
Performance of BIIB’s Rare Disease Drugs
Sales of Spinraza declined around 12% to $374 million. The figure missed the Zacks Consensus Estimate of $379 million.
Rare disease drug Skyclarys generated sales of $150.7 million, up 21.6% year over year, driven by continued demand growth.
Qalsody added sales of $32.5 million, up more than 100% year over year, driven by demand growth.
Other Products
New drug Zurzuvae (for postpartum depression) recorded sales of nearly $55.4 million in the quarter, down 16% on a sequential basis as demand growth was partially offset by inventory dynamics.
Biogen has a collaboration with Supernus Pharmaceuticals (SUPN - Free Report) for Zurzuvae. Biogen and Supernus Pharmaceuticals equally share profits and losses for the commercialization of Zurzuvae in the United States. In outside U.S. markets, Biogen records product sales (excluding Japan, Taiwan and South Korea) and pays royalties to Supernus.
Biosimilar revenues declined 7% year over year to $182 million during the quarter.
BIIB’s Cost Rise
Adjusted research and development (R&D) expenses rose 13% year over year to $480 million due to increased costs behind the company’s late-stage candidates like litifilimab and felzartamab.
Adjusted selling, general and administrative (SG&A) expenses rose 5% to $600 million due to higher costs to support the new product launches.
BIIB's 2026 Guidance
Biogen maintained its revenue guidance for the year while lowering its earnings guidance to include IPR&D charges related to M&A activities.
Total revenues are expected to decline by a mid-single-digit percentage in constant currency terms in 2026 from the 2025 level. A decline in MS revenues (excluding Vumerity) is expected to be partially offset by higher revenues from growth products.
Adjusted EPS guidance was lowered from a range of $15.25 to $16.25 to $14.25 to $15.25.
The gross margin in 2026 is expected to be similar to the 2025 levels. Combined adjusted R&D and SG&A costs are also expected to be similar to 2025 levels.
Our Take on BIIB’s Results
Biogen delivered better-than-expected first-quarter results as it beat estimates for both earnings and sales. Shares were up more than 2% in pre-market trading despite the company slashing its full-year earnings guidance to include costs related to M&A deals.
In the past year, the stock has risen 51.5% compared with the industry’s 15.1% growth.
Image Source: Zacks Investment Research
While Biogen’s MS drugs and Spinraza are seeing rising competitive pressure, the company’s newer products — Leqembi, Zurzuvae, Skyclarys and Qalsody — have the potential to return the company to revenue growth. All these new products are showing signs of growth. Sales of Biogen’s growth products (Skyclarys, Qalsody, Zurzuvae, Vumerity and Spinraza) rose 12% in the quarter.
Biogen has also strengthened its mid-to-late-stage neurology and immunology pipeline with M&A deals.
At the end of March, Biogen announced a definitive agreement to acquire Apellis Pharmaceuticals (APLS - Free Report) for approximately $5.6 billion in cash at closing. The deal will add APLS’ two commercialized medicines in immune-mediated retinal disease and nephrology — Empaveli and Syfovre — to Biogen’s portfolio. The drugs complement Biogen’s key late-stage pipeline candidate, felzartamab, which is being developed for kidney disease. The transaction is expected to be closed in the second quarter of this year. The EPS guidance for 2026 does not include any costs related to the Apellis transaction.
BIIB’s Zacks Rank
Biogen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen Inc. Price, Consensus and EPS Surprise
Biogen Inc. price-consensus-eps-surprise-chart | Biogen Inc. Quote