BIIB Q2 Deep Dive: New Launches Offset Legacy Pressure, Pipeline Advancements Drive Guidance

Biotech company Biogen (NASDAQ:BIIB) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 7.3% year on year to $2.65 billion. Its non-GAAP profit of $5.47 per share was 41.3% above analysts’ consensus estimates.

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StockStory’s Take

Biogen’s second quarter delivered results that exceeded Wall Street’s revenue and profit expectations, a performance that was met with a positive market reaction. Management highlighted continued growth from newly launched products, which offset ongoing declines in the multiple sclerosis portfolio. CEO Christopher Viehbacher emphasized the “strength of VUMERITY” and the “consistent growth with LEQEMBI,” noting these were key contributors to the quarter. Product expansion in rare diseases and neurology, particularly with SKYCLARYS and ZURZUVAE, also contributed to the improved results, buoyed by what the company called “strong discipline on costs.”

Looking ahead, Biogen’s updated guidance is driven by management’s optimism around the momentum of its new product launches and a robust late-stage pipeline. CEO Viehbacher stated, “the next 12 to 18 months are marked by multiple key expected scientific milestones and regulatory outcomes,” pointing to upcoming data readouts and new market entries. The company expects increased investments in research and development to accelerate clinical programs, particularly in rare diseases. Management also anticipates the potential for broader adoption of LEQEMBI, especially with new blood-based biomarkers and the possible approval of subcutaneous formulations, as pivotal to future growth.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to commercial execution in new product launches, resilience in the U.S. multiple sclerosis business, and steady progress in advancing the development pipeline.

• New launches offset legacy erosion: Growth from recently launched therapies, including LEQEMBI, SKYCLARYS, and ZURZUVAE, outpaced declines in the multiple sclerosis (MS) portfolio, with VUMERITY singled out for its continued U.S. momentum and remaining market exclusivity.
• Alzheimer’s momentum and market expansion: LEQEMBI’s adoption benefited from improved health system readiness, increased blood-based biomarker testing, and a targeted direct-to-consumer campaign. Management emphasized that “monthly PET testing has increased approximately fivefold over the last 1.5 years,” reflecting expanding diagnostic capabilities.
• Pipeline expansion and key milestones: Biogen initiated three Phase III studies this quarter, including for SKYCLARYS in pediatric Friedreich ataxia and felzartamab in kidney disease. Promising early data for salanersen in spinal muscular atrophy (SMA) was highlighted as a proof-of-concept for once-yearly dosing.
• Commercial execution in rare diseases: SKYCLARYS achieved global availability in 29 markets and saw double-digit U.S. revenue growth, driven by a strategic shift to reach older patients in community settings. ZURZUVAE posted a 68% sequential revenue increase, attributed to expanded field efforts and growing prescriber trust.
• Cost discipline and investment shift: The company continued to balance operating expense control with targeted R&D investment, particularly to support advancing its expanding pipeline. Biogen also highlighted a recent research agreement with City Therapeutics and signaled ongoing pursuit of external collaborations and potential M&A.

Drivers of Future Performance

Management expects Biogen’s growth to hinge on sustained execution in new launches, expanded R&D investment, and emerging diagnostic and treatment options.

• LEQEMBI adoption and new formulations: The company sees broader uptake of LEQEMBI as a major growth driver, especially with the rollout of blood-based biomarkers and potential approval of subcutaneous (under-the-skin) versions. Management believes these developments will improve patient access and convenience, helping to accelerate market expansion.
• Pipeline advancement and milestone catalysts: Biogen is prioritizing investment in late-stage programs, particularly for rare diseases and immunology. Upcoming Phase III trial readouts and regulatory decisions, including those for salanersen in SMA and felzartamab in kidney transplant rejection, are expected to shape the company’s growth trajectory.
• Competitive and reimbursement dynamics: Management acknowledged increasing competition in the MS and Alzheimer’s markets and noted ongoing efforts to secure reimbursement for new products, especially in Europe and Brazil. These dynamics, along with policy changes and payer adoption of new diagnostics, represent key variables for future performance.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be closely monitoring (1) the commercial rollout and adoption of subcutaneous LEQEMBI and its effect on patient access, (2) progress toward regulatory approvals and reimbursement for new therapies in key international markets, and (3) the pace of enrollment and data updates from ongoing Phase III studies in rare diseases and immunology. Additional milestones in product launches and external collaborations could further influence Biogen’s growth outlook.

Biogen currently trades at $129.50, up from $126.96 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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