Biogen's Q2 Results Show Mixed Signals: Hold Rating Maintained

Biogen reported strong Q2 2025 financial results, but much of this success was attributed to one-time events. Leqembi sales showed growth, but the competitive landscape remains challenging. The company's pipeline updates offer promise, but commercial opportunities are uncertain. Analyst William Pickering of Bernstein maintains a Hold rating with a $155 price target.

Biogen Inc. (BIIB) reported robust financial results for the second quarter of 2025, exceeding market expectations. The company's earnings per share (EPS) of $5.47 surpassed the forecasted $3.99 by 37.09%, and revenue reached $2.6 billion, up 12.07% from the projected $2.32 billion [1]. Following the announcement, Biogen's stock rose by 5.02% in pre-market trading, reaching $133 [1].

The company's strong performance was driven by new product launches and continued growth in existing therapies. Four newly launched products contributed $252 million, showing a 26% increase quarter-over-quarter and a 91% rise year-over-year [1]. However, much of this success can be attributed to one-time events, such as the approval of new products and the expansion of existing ones.

Despite the positive quarter, Biogen faces challenges in the competitive landscape, particularly in the ex-US multiple sclerosis (MS) market [1]. The company's gross profit margin remains high at 75.65%, and the stock trades at an attractive P/E ratio of 12.87, suggesting potential value for investors [1].

Biogen's pipeline updates offer promise, with several phase three studies initiated and new data presented at medical congresses. However, the commercial opportunities for these products remain uncertain [1]. Analyst William Pickering of Bernstein maintains a Hold rating with a $155 price target [1].

The company's full-year 2025 non-GAAP diluted EPS guidance was raised to $15.50-$16.00, reflecting the strong performance and promising pipeline [1]. Biogen expects total 2025 revenue to remain approximately flat compared to 2024, despite anticipated competitive pressures in the ex-US MS business [1].

References:
[1] https://za.investing.com/news/transcripts/earnings-call-transcript-biogen-q2-2025-earnings-beat-forecasts-stock-rises-93CH-3814572