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Can Biogen's Growth Portfolio Maintain Its Lead Over Legacy MS Drugs?
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Key Takeaways
Biogen's growth portfolio generated $1.06 billion, surpassing $767 million from its legacy MS portfolio.
Skyclarys and Zurzuvae posted 29% and 53% revenue growth, respectively, in the second quarter.
Apellis products and international launches could further support growth in the second half of 2026.
Biogen (BIIB - Free Report) has been undergoing a major transformation. The company has long been seeing declining sales of its key multiple sclerosis (“MS”) due to generic competition for Tecfidera globally, biosimilar competition for Tysabri in Europe and rising competitive pressure in the MS market.
However, sales from its growth products now exceed revenues from its legacy MS portfolio. Its growth drugs include Spinraza, Vumerity, new drugs Skyclarys (Friedreich’s ataxia), Qalsody (amyotrophic lateral sclerosis) and Supernus Pharmaceuticals (SUPN - Free Report) -partnered Zurzuvae (postpartum depression), as well as newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition, plus Alzheimer’s revenues from the Leqembi collaboration with Eisai.
Biogen’s second-quarter 2026 results marked an important shift in its revenue mix, with the company’s growth portfolio generating $1.06 billion in revenues, up 24% year over year and 25% on a sequential basis. Sales of the growth drugs surpassed the legacy MS portfolio, which generated $767 million in the second quarter. Even excluding the newly acquired Syfovre and Empaveli, revenues from the growth products were $933 million, up 9% year over year and 10% quarter over quarter. This was also higher than revenues from the legacy MS portfolio in the second quarter.
In the second quarter, Skyclarys revenues rose 29% to $168 million, and Zurzuvae revenues increased 53% to $71 million. Vumerity revenues fell 7.4% to $196.5 million. Spinraza revenues increased 2% to $402 million. Syfovre and Empaveli contributed $97.4 million and $30.4 million, respectively, to Biogen’s reported revenues.
Alzheimer’s collaboration revenues from partner Eisai for Leqembi rose 16% to $63.7 million. Biogen and Eisai believe that the introduction of blood-based diagnostics (which can help with earlier detection of Alzheimer’s) and the launch of Leqembi Iqlik for maintenance and initiation should further drive Leqembi’s growth from 2027 onward.
The growth portfolio is expected to maintain its lead in the second half of 2026. Skyclarys and Qalsody are expanding internationally, Zurzuvae is in the early stages of its commercial rollout outside the United States, and Spinraza should benefit from continued conversion to the higher-dose regimen. The Apellis products provide an additional tailwind. Since Biogen only began recording Syfovre and Empaveli revenues in mid-May, their contribution to second-half results should be larger than in the second quarter. Beyond 2026, the trend could become even more pronounced, and the underlying mix could continue to shift toward newer products, although the magnitude and timing will depend on commercial execution.
BIIB’s Price Performance, Valuation and Estimates
Biogen’s stock has risen 29.3% so far this year compared with an appreciation of 13.3% for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Biogen is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 14.95 forward earnings, which is lower than 18.24 for the industry. The stock is trading above its five-year mean of 13.14. However, the stock is much cheaper than other large drugmakers like Eli Lilly (LLY - Free Report) , AbbVie (ABBV - Free Report) , J&J, Merck and Gilead.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has risen from $11.53 per share to $12.71 per share for 2026 over the past 60 days. For 2027, the consensus mark for earnings has declined from $16.24 to $16.11 per share over the same time frame.
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Can Biogen's Growth Portfolio Maintain Its Lead Over Legacy MS Drugs?
Key Takeaways
Biogen (BIIB - Free Report) has been undergoing a major transformation. The company has long been seeing declining sales of its key multiple sclerosis (“MS”) due to generic competition for Tecfidera globally, biosimilar competition for Tysabri in Europe and rising competitive pressure in the MS market.
However, sales from its growth products now exceed revenues from its legacy MS portfolio. Its growth drugs include Spinraza, Vumerity, new drugs Skyclarys (Friedreich’s ataxia), Qalsody (amyotrophic lateral sclerosis) and Supernus Pharmaceuticals (SUPN - Free Report) -partnered Zurzuvae (postpartum depression), as well as newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition, plus Alzheimer’s revenues from the Leqembi collaboration with Eisai.
Biogen’s second-quarter 2026 results marked an important shift in its revenue mix, with the company’s growth portfolio generating $1.06 billion in revenues, up 24% year over year and 25% on a sequential basis. Sales of the growth drugs surpassed the legacy MS portfolio, which generated $767 million in the second quarter. Even excluding the newly acquired Syfovre and Empaveli, revenues from the growth products were $933 million, up 9% year over year and 10% quarter over quarter. This was also higher than revenues from the legacy MS portfolio in the second quarter.
In the second quarter, Skyclarys revenues rose 29% to $168 million, and Zurzuvae revenues increased 53% to $71 million. Vumerity revenues fell 7.4% to $196.5 million. Spinraza revenues increased 2% to $402 million. Syfovre and Empaveli contributed $97.4 million and $30.4 million, respectively, to Biogen’s reported revenues.
Alzheimer’s collaboration revenues from partner Eisai for Leqembi rose 16% to $63.7 million. Biogen and Eisai believe that the introduction of blood-based diagnostics (which can help with earlier detection of Alzheimer’s) and the launch of Leqembi Iqlik for maintenance and initiation should further drive Leqembi’s growth from 2027 onward.
The growth portfolio is expected to maintain its lead in the second half of 2026. Skyclarys and Qalsody are expanding internationally, Zurzuvae is in the early stages of its commercial rollout outside the United States, and Spinraza should benefit from continued conversion to the higher-dose regimen. The Apellis products provide an additional tailwind. Since Biogen only began recording Syfovre and Empaveli revenues in mid-May, their contribution to second-half results should be larger than in the second quarter. Beyond 2026, the trend could become even more pronounced, and the underlying mix could continue to shift toward newer products, although the magnitude and timing will depend on commercial execution.
BIIB’s Price Performance, Valuation and Estimates
Biogen’s stock has risen 29.3% so far this year compared with an appreciation of 13.3% for the industry.
From a valuation standpoint, Biogen is reasonably priced. Going by the price/earnings ratio, the company’s shares currently trade at 14.95 forward earnings, which is lower than 18.24 for the industry. The stock is trading above its five-year mean of 13.14. However, the stock is much cheaper than other large drugmakers like Eli Lilly (LLY - Free Report) , AbbVie (ABBV - Free Report) , J&J, Merck and Gilead.
The Zacks Consensus Estimate for earnings has risen from $11.53 per share to $12.71 per share for 2026 over the past 60 days. For 2027, the consensus mark for earnings has declined from $16.24 to $16.11 per share over the same time frame.
Biogen has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.