Biogen tops quarterly estimates on growth from newer drugs

• Biogen earned $3.60 per share on revenue of $2.74 billion, beating estimates of $2.46 billion, with Leqembi sales rising 15% to $184 million
• The company cut its 2026 adjusted profit forecast to account for an 85-cent-per-share impact from the Apellis acquisition, which added two rare disease drugs generating $689 million combined revenue in 2023
• Legacy multiple sclerosis drug sales, including Tecfidera, fell 13% to $963 million as the aging portfolio faces mounting competition and pricing pressure

Biogen Q2 Earnings Summary

Financial Performance:

Biogen exceeded Wall Street expectations for Q2, reporting adjusted earnings of $3.60 per share and revenue of $2.74 billion, surpassing the estimated $2.46 billion. However, the company reduced its 2026 adjusted earnings guidance to $11.87 per share from the previous $12.72 analyst consensus, with an 85-cent impact attributed to its recent Apellis Pharmaceuticals acquisition.

Key Growth Drivers:

Strong demand for rare-disease medicines drove quarterly outperformance. Leqembi, Biogen's Alzheimer's drug developed with Eisai, generated $184 million in global sales, up 15% year-over-year, as uptake improved following initial concerns about cost, efficacy, and side effects. Recent U.S. approvals for a more convenient formulation are expected to boost patient adoption further.

Strategic Moves:

The Apellis Pharmaceuticals acquisition—Biogen's largest since the 2023 Reata Pharmaceuticals buyout—provides entry into kidney disease treatment and access to two approved rare disease drugs that generated combined revenue of approximately $689 million in the previous year.

Challenges:

Legacy multiple sclerosis drugs continue facing pressure, with sales of products like Tecfidera declining 13% to $963 million compared to the prior year, reflecting mounting competition and pricing challenges in the aging MS portfolio.

Market Implications:

Investors are monitoring whether recent acquisitions and newer products like Leqembi can offset declining MS drug revenues and reignite growth. The company's ability to successfully integrate acquisitions while managing portfolio transition will be critical to long-term performance.