Biogen 2025 Q1 Earnings EPS Declines 39.1%

Biogen (BIIB) reported its fiscal 2025 Q1 earnings on May 01st, 2025. Biogen's earnings for the first quarter of 2025 reflected a decline in EPS to $1.65, missing expectations compared to the same quarter last year. Despite a revenue increase of 6.1% year-over-year, the net income fell sharply by 38.9% to $240.50 million. The company revised its full-year non-GAAP diluted EPS guidance to a range of $14.50 to $15.50, adjusting for the impacts of the Stoke transaction and favorable foreign exchange rates.

Revenue
The total revenue of Biogen increased by 6.1% to $2.43 billion in 2025 Q1, up from $2.29 billion in 2024 Q1. Product revenue, net, amounted to $1.73 billion. Revenue from anti-CD20 therapeutic programs reached $378.20 million, while Alzheimer's collaboration revenue contributed $33 million. Contract manufacturing, royalty, and other revenue accounted for $293.30 million, culminating in a total revenue of $2.43 billion.

Earnings/Net Income
Biogen's EPS declined 39.1% to $1.65 in 2025 Q1 from $2.71 in 2024 Q1. Meanwhile, the company's net income declined to $240.50 million in 2025 Q1, down 38.9% from $393.40 million reported in 2024 Q1. The significant drop in EPS indicates a challenging quarter for Biogen.

Price Action
The stock price of Biogen has edged up 0.47% during the latest trading day, has edged up 1.19% during the most recent full trading week, and has tumbled 11.63% month-to-date.

Post-Earnings Price Action Review
The impact of Biogen's earnings report on its stock price has generally been positive, with maximum returns of 3.65% observed within 30 days of earnings releases. However, performance varies across different metrics and time frames. Revenue-related earnings reports show a mixed medium-term performance, with a 3-day win rate of 50%, a 10-day win rate of 60%, and a 30-day win rate of 45%. Meanwhile, net income-related reports indicate a more favorable short and medium-term outlook, with win rates of 60%, 70%, and 55% over 3, 10, and 30 days, respectively. EPS-related reports mirror revenue trends, showing a similar win rate pattern. Overall, while net income and EPS metrics tend to yield slightly higher win rates in the short and medium term, investors should consider these metrics alongside their specific investment time frame.

CEO Commentary
Chris Viehbacher, President & Chief Executive Officer, expressed optimism about Biogen's performance, highlighting a "very good start to the year" with a strong quarter. He noted the company's evolving identity, emphasizing a shift from a declining MS portfolio to a growing rare disease business, which now comprises 45% of product revenue. Viehbacher pointed to key approvals like LEQEMBI in Europe and anticipated growth from their pipeline, including FDA Fast Track designation for BIIB080. He acknowledged challenges in launching LEQEMBI but remains confident in innovations that will ease physician workloads and improve patient access, fostering a positive outlook for future growth.

Guidance
Biogen updated its full-year 2025 non-GAAP diluted EPS guidance to a range of $14.50 to $15.50, reflecting impacts from the Stoke transaction and favorable foreign exchange rates. The company expects total revenue for 2025 to decline by a mid-single-digit percentage, primarily due to a steeper decline in its MS business. Despite this, Biogen anticipates sequential revenue growth from its launch products, although the overall absolute revenue from MS is expected to decrease.

Additional News
Recent developments at Biogen include significant analyst activity, with William Blair issuing a negative outlook for Biogen's Q2 2025 EPS estimates, adjusting down to $4.10 per share. The Goldman Sachs Group also reduced their price objective from $219.00 to $197.00, maintaining a "buy" rating. Meanwhile, Piper Sandler reiterated a "neutral" rating with a price target adjustment to $135.00. Additionally, Biogen's stock was downgraded by HSBC from a "buy" to a "hold," setting a target price of $118.00. This analyst activity reflects the mixed sentiment surrounding Biogen's future performance amidst its current strategic shifts.