Biogen Inc.
BIIB · Nasdaq
Next quarter
Reports Oct 29, 2026.
Consensus is $2.10 EPS for Sep 2026 across 10 estimates, ranging $1.71 to $2.67.
BIIB Jun 2026
- 18.42%
- -0.62%
- $3.04
- $3.60
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Highlights
- Revenue: Second-quarter revenue was $2.736 billion, up 3% year over year and approximately 10% above the $2.48 billion reported in Q1 FY2026; constant-currency growth was 2%.
- Adjusted EPS: Non-GAAP diluted EPS was $3.60, $0.56 above the $3.04 consensus estimate for an 18.42% surprise, although it fell 34% from $5.47 a year ago.
- GAAP earnings: GAAP diluted EPS was $0.66 versus $4.33 a year ago, with net income falling to $97.5 million from $634.8 million after $165.4 million of restructuring charges and $164 million of acquired IPR&D expense.
- Growth portfolio: Growth Portfolio revenue reached $1.06 billion, up 24% year over year and exceeding the legacy MS portfolio; rare disease revenue rose 11% to $602 million.
- Apellis contribution: The May 14 Apellis acquisition added $127.8 million of specialized immunology product revenue, including $97.4 million from SYFOVRE and $30.4 million from EMPAVELI.
- Key products: SPINRAZA revenue increased 2% to $401.9 million, SKYCLARYS rose 29% to $167.9 million, LEQEMBI global in-market sales grew 15% to $184 million, and ZURZUVAE rose 53% to $70.8 million.
- MS pressure: MS product revenue declined 13% to $963 million, including a 7% decline in VUMERITY to $196.5 million; legacy MS revenue was $767 million, supported by resilient TYSABRI revenue of $450.8 million.
- Outlook: Biogen raised underlying full-year 2026 adjusted EPS guidance by $0.60 to $15.85-$16.85, but lowered reported guidance to $12.00-$13.00 after incorporating approximately $3.00 of IPR&D and milestone charges and $0.85 of Apellis dilution.
- Pipeline: Biogen expects five registrational readouts over the next four quarters, including litifilimab in SLE by year-end 2026 and readouts for litifilimab, felzartamab and zorevunersen next year.
Analysis
Biogen's second quarter was a clear adjusted-EPS beat but a mixed underlying earnings print. Non-GAAP diluted EPS of $3.60 exceeded the $3.04 consensus estimate by 18.42%, while revenue of $2.736 billion grew 3% year over year and increased about 10% sequentially from $2.48 billion in Q1 FY2026. The revenue result was driven by the expanding Growth Portfolio, which grew 24% to $1.06 billion, offsetting a 13% decline in MS product revenue. Adjusted EPS nevertheless declined 34% from $5.47 in Q2 FY2025, while GAAP EPS fell to $0.66 from $4.33 and net income dropped to $97.5 million from $634.8 million.
The print centered on Biogen's repositioning toward newer growth assets, with Apellis contributing $127.8 million of revenue only from its May 14 closing date and products such as SKYCLARYS, ZURZUVAE, SPINRAZA and LEQEMBI gaining momentum. The cost of that repositioning was visible in $164 million of acquired IPR&D, $165.4 million of restructuring charges, higher R&D and SG&A, and $200.6 million of inventory fair-value amortization included in the adjusted-EPS reconciliation. Management raised underlying full-year adjusted EPS guidance to $15.85-$16.85, but reported guidance fell to $12.00-$13.00 because of transaction and milestone charges. The next defining feature is the pipeline, with five late-stage registrational readouts expected over the coming four quarters.
Growth portfolio transition
Biogen's commercial mix continued shifting away from legacy MS toward newer rare-disease, immunology and Alzheimer's assets. Growth Portfolio revenue was $1.06 billion, up 24% year over year, and exceeded the legacy MS portfolio's $767 million. Rare disease revenue increased 11% to $602 million, while Alzheimer's collaboration revenue rose 16% to $63.7 million, reflecting Biogen's 50% share of LEQEMBI economics.
- SPINRAZA: Revenue was $401.9 million, up 2% year over year. High-dose conversion has run ahead of expectations in launched markets, although ex-U.S. shipment timing partly offset demand.
- SKYCLARYS: Revenue grew 29% to $167.9 million, supported by global demand and the continued European launch.
- ZURZUVAE: Revenue rose 53% to $70.8 million, with Germany becoming the first commercial market outside the U.S. for postpartum-depression treatment.
- LEQEMBI: Global in-market sales were $184 million, up 15%, including U.S. sales of $97 million. The FDA approved LEQEMBI IQLIK for at-home initiation dosing.
- Apellis products: SYFOVRE generated $162 million for the full quarter and EMPAVELI generated $46 million, although Biogen recognized only $97.4 million and $30.4 million, respectively, after the acquisition closed.
Apellis earnings impact
The Apellis acquisition broadened Biogen's commercial base but materially changed the quarter's cost structure and capital position. Biogen recorded $127.8 million of specialized immunology revenue after the May 14 closing, while Apellis-related commercial and management costs increased SG&A and transaction financing increased interest expense. Integration also produced $153.2 million of net pre-tax restructuring charges, primarily severance and accelerated bonus costs.
- Purchase accounting: Biogen recorded approximately $712 million of acquired Apellis inventory, including a $567.5 million fair-value step-up; $69.7 million of step-up amortization was recognized in the first half.
- Earnings dilution: Management expects the transaction to dilute 2026 non-GAAP EPS by approximately $0.85, driven mainly by lower interest income and higher interest expense, but expects accretion in 2027.
- Synergies: Expected Apellis run-rate synergies exiting 2027 are at least $250 million.
- Balance-sheet effect: The acquisition was funded with cash and securities plus a $2.0 billion term loan and a $400 million revolver draw, leaving $1.3 billion of cash, $8.1 billion of total debt and $6.8 billion of net debt at quarter-end.
Earnings and guidance
The adjusted result was better than expected, but the reconciliation shows how much of the quarter was shaped by transactions, investment and restructuring. Non-GAAP cost of sales rose to $612.2 million from $554.3 million, R&D to $489.5 million from $393.7 million, and SG&A to $679.6 million from $578.6 million. Higher clinical spending included felzartamab, salanersen and litifilimab, while commercial spending supported product launches.
- GAAP-to-adjusted bridge: The $2.94 per-share difference between GAAP EPS of $0.66 and non-GAAP EPS of $3.60 included $200.6 million of inventory step-up amortization, $170.5 million of restructuring and cost-saving items, $153.6 million of acquired-intangible amortization and $28.2 million of acquisition-related costs.
- Underlying outlook: Full-year 2026 non-GAAP EPS guidance increased from $15.25-$16.25 to $15.85-$16.85, and full-year revenue is now expected to grow at a mid-single-digit rate.
- Reported outlook: Reported EPS guidance declined to $12.00-$13.00 from $14.25-$15.25 as estimated acquired IPR&D and milestone charges increased to approximately $3.00 per share and Apellis dilution was added.
- Cash generation: Second-quarter operating cash flow was $448.9 million and free cash flow was $408.0 million, compared with $160.9 million and $134.3 million, respectively, in Q2 FY2025.
Legacy MS erosion
Multiple sclerosis remained the principal offset to Biogen's growth assets. MS product revenue declined to $963.3 million from $1.107 billion, down 14% at constant currency. Legacy MS revenue, excluding VUMERITY and SPINRAZA, was $767 million; TYSABRI was broadly stable at $450.8 million, but the fumarate and interferon franchises continued to contract.
- VUMERITY: Revenue fell 7% to $196.5 million, primarily due to inventory dynamics, though first-half revenue was up 7% year over year.
- TYSABRI: Revenue was $450.8 million versus $454.6 million a year ago, providing the main source of resilience within legacy MS.
- Other legacy products: TECFIDERA revenue dropped to $90.9 million from $193.6 million, while AVONEX declined to $170.0 million from $177.7 million and PLEGRIDY to $55.1 million from $69.0 million.
- Structural risk: The filing continues to identify generic TECFIDERA competition and a potential TYSABRI biosimilar entrant as risks to the legacy franchise.
Late-stage pipeline
Biogen emphasized that the next phase of the repositioning depends on clinical execution rather than only acquired revenue. The company expects five registrational readouts across the next four quarters, creating a concentrated sequence of catalysts while it continues to add earlier-stage programs.
- Litifilimab: Registrational data in SLE are expected by the end of 2026, followed by a Phase 3 readout in cutaneous lupus erythematosus next year.
- Felzartamab: A Phase 3 readout in antibody-mediated rejection is expected next year, and Biogen plans to initiate a new Phase 2 Graves' disease study.
- Zorevunersen: A Phase 3 readout in Dravet syndrome is anticipated next year under the Stoke collaboration.
- Diranersen: Phase 2 data in Alzheimer's disease provided proof of concept, including reported efficacy and reduced brain tau pathology; Biogen plans to advance the program to Phase 3.
- Business development: The pending RayThera acquisition is expected to add multiple immunology programs, including a lead asset now entering Phase 1 development, for an upfront payment of $225 million plus up to $775 million in potential milestones.
