Biogen's Q2 Earnings Beat, New Drugs Drive Sales, 2026 Guidance Raised

Lower sales of key multiple sclerosis drugs were offset by higher revenues from new drugs, Skyclarys, Qalsody and Zurzuvae and contributions from the newly acquired drugs, Empaveli and Syfovre, from the Apellis acquisition that closed in May 2026. Spinraza’s sales also improved in the second quarter.

BIIB’s Q2 Revenue Breakdown

Product revenues increased 2% year over year to $1.92 billion. Revenues from anti-CD20 therapeutic programs grew 10% to $513.5 million, driven by royalties on Ocrevus sales and Biogen’s share of profits from Roche’s RHHBY Rituxan, Gazyva and Lunsumio.

Contract manufacturing, royalty and other revenues declined 1% to $242.4 million. Alzheimer’s collaboration revenues advanced 16% to $63.7 million.

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 $184 million in global revenues from Leqembi sales in the second quarter, up 15% year over year and around 10% sequentially, driven by demand growth globally. The drug’s U.S. sales were $97 million.

Biogen's Growth Drugs Gain Ground

Rare disease revenues rose 11% to $601.7 million.

Spinraza sales increased 2% to $401.9 million as demand and stocking for the high-dose regimen offset unfavorable shipment timing in some international markets. The figure beat the Zacks Consensus Estimate of $379 million.

A higher dose regimen of Spinraza, which reduces the dosing frequency, was recently approved in the United States, Japan and the EU. The high-dose Spinraza improves Biogen’s competitiveness in a highly competitive area. Biogen said that conversion to the high-dose regimen has been better than expected.

Rare disease drug Skyclarys revenues surged 29% to $167.9 million on higher global demand. Skyclarys’ revenues beat the Zacks Consensus Estimate of $155 million.

Qalsody sales increased 59.5% year over year to $31.9 million, driven by demand growth.

Zurzuvae generated $70.8 million, up 53% year over year and 28% sequentially, reflecting demand growth.

Biogen has a collaboration with Supernus Pharmaceuticals SUPN 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 fell 15.9% to $152.8 million, reflecting lower sales of Benepali, Imraldi and Flixabi.

Syfovre and Empaveli contributed $97.4 million and $30.4 million, respectively, to Biogen’s reported revenues in the second quarter.

BIIB's Legacy MS Portfolio Remains Under Pressure

Multiple sclerosis product revenues declined 13% year over year to $963.3 million due to generic competition for Tecfidera globally and Tysabri in Europe and rising competitive pressure in the MS market.

Vumerity revenues fell 7.4% to $196.5 million due mainly to inventory dynamics. This metric missed the Zacks Consensus Estimate of $205 million.

Tecfidera sales plunged 53% to $90.9 million due to generic erosion globally. The drug’s sales also missed the Zacks Consensus Estimate of $103 million.

Tysabri revenues slipped 0.8% year over year to $450.8 million. The drug’s sales beat the Zacks Consensus Estimate of $375 million.

Combined Avonex and Plegridy sales declined 8.8% to $225.1 million.

Biogen's Operating Costs Rise

Adjusted research and development expenses increased 24% to $489.5 million. The increase reflected higher clinical-trial spending on felzartamab, salanersen and litifilimab, the inclusion of Apellis operating costs and lower research funding from Royalty Pharma.

Adjusted selling, general and administrative expenses rose 17% to $679.6 million. The increase was driven by Apellis’ commercial and management operations and higher spending to support product launches.

BIIB Ups 2026 Revenue and EPS Outlook

Biogen raised its revenue guidance for the year due to expected higher revenues from growth products. Biogen now expects 2026 revenues to increase by a mid-single-digit percentage from 2025. This is in contrast to the company’s earlier expectation of a mid-single-digit constant-currency decline.

The company raised its underlying adjusted earnings guidance to a range of $15.85-$16.85 per share from the prior expectation of $15.25 to $16.25 per share.

Combined adjusted R&D and SG&A costs are expected to be between $2.65 billion and $2.70 billion for the second half of 2026.

Other Key Announcements in Q2 Release

Biogen announced that BIIB091 achieved proof of concept in a phase II study for relapsing-remitting multiple sclerosis. The company will evaluate the next development steps for the asset.

BIIB also exercised its option and in-licensed worldwide rights from partner Ionis IONS to develop and commercialize BIIB147, a phase I-ready antisense therapy targeting stathmin 2 pre-mRNA in broad amyotrophic lateral sclerosis. Biogen paid Ionis a $15 million one-time license fee.

Our Take on BIIB’s Results

Biogen delivered a strong second-quarter performance, beating estimates for both earnings and revenues. Revenues from Biogen’s growth products (Empaveli, Qalsody, Skyclarys, Spinraza, Syfovre, Vumerity, Zurzuvae plus Alzheimer’s revenues from the Leqembi collaboration) rose 24% year over year and surpassed the legacy multiple sclerosis portfolio.

The company also raised its sales and earnings guidance due to an improved underlying business outlook. Shares rose 1.5% in pre-market trading, backed by the better-than-expected results and guidance raise.

So far this year, the stock has risen 16.9% compared with the industry’s 4.5% growth.

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Biogen has also strengthened its mid-to-late-stage neurology and immunology pipeline lately with M&A deals. Biogen expects five registrational readouts from its late-stage pipeline over the next four quarters.

However, the company continues to face pressure from declining multiple sclerosis and biosimilar sales, while higher research, commercial and acquisition-related costs weigh on earnings. Biogen’s near-term profitability remains affected by acquired in-process research and development charges and dilution from 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.

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