Biogen’s Q1 2025 Earnings: Navigating Legacy Challenges to Fuel Future Growth

Biogen Inc. (BIIB) delivered a resilient first-quarter 2025 performance, defying headwinds from declining legacy multiple sclerosis (MS) therapies and biosimilar competition. While the company’s earnings per share (EPS) dipped 18% year-over-year to $3.02—due to a $165 million upfront payment for a rare disease partnership—its adjusted EPS surged 8% to $3.97. Revenue rose 6% to $2.43 billion, driven by breakout performance from new therapies like Lekembi (for Alzheimer’s) and Skyclaris (for spinal muscular atrophy). The results underscore Biogen’s transition from a fading MS giant to a biotech leader in neurology and rare diseases, though challenges remain.

A Tale of Two Companies
CEO Chris Vibacher framed Biogen as a “tale of two companies”: one anchored in declining MS drugs (now 55% of revenue) and another fueled by innovative therapies like Lekembi and Skyclaris (accounting for 45% of product sales). This duality is evident in the numbers: while MS franchise revenue fell 11% year-over-year, newer products collectively generated $200 million in Q1—double the year-ago figure.

Ask Aime: "Could Biogen's new therapies, like Lekembi and Skyclaris, help offset declining MS drug sales?"

Key Product Highlights
1. Lekembi (Aducanumab): Global sales hit $96 million, up 11% sequentially, after securing EU approval—a critical validation for its Alzheimer’s disease-modifying potential. Subcutaneous formulations, enabling at-home administration via auto-injector, are on track for FDA approval by August 2025, with initiation formulations targeting early 2026. This could reduce reliance on infusion centers and expand patient access.
2. Skyclaris (Zanataceptin Alfa): Revenue soared 59% year-over-year to $124 million, with 2,400 patients treated across 26 markets. Brazil’s recent regulatory approval and targeted patient-identification programs are key growth drivers.
3. Xerzuvae (Zurzuvae): Sales reached $28 million, with 10,000 women treated for postpartum depression. OBGYNs now write 80% of prescriptions, signaling a paradigm shift in treatment pathways.

Pipeline Momentum and Strategic Priorities
Biogen’s pipeline is its crown jewel, with five Phase 3 trials planned for 2025, including:
- Fezartamab for autoimmune encephalitis (AMR) and potential approvals in immunology (e.g., IgA nephropathy).
- BIIB80, a tau-targeting antisense oligonucleotide (ASO) for Alzheimer’s, which received FDA Fast Track designation based on Phase 1 data showing cognitive improvements and reduced tau levels.
- Zoravunersen (licensed from Stoke Therapeutics) for Dravet syndrome, a rare epilepsy disorder, with Phase 3 trials expected in 2025.

Ask Aime: What's driving Biogen's stock price today?

The company also emphasized partnerships, such as its $165 million upfront payment for Zoravunersen, and strategic initiatives like direct patient engagement in Alzheimer’s care.

Challenges Ahead
- MS Franchise Decline: Biosimilars for Tysabri and generics for Tecfidera continue to erode revenue. While VUMERITY (a top oral MS therapy) saw demand growth, the franchise’s 11% year-over-year decline underscores the urgency of pipeline success.
- Alzheimer’s Competition: Rival therapies like Eisai’s Lecanemab and Roche’s gantenerumab threaten Lekembi’s market share. Biogen’s focus on subcutaneous formulations and biomarker advancements (e.g., blood-based tau tests) aims to differentiate its offering.
- Tariff Risks: Biogen’s U.S.-centric manufacturing (75% of domestic revenue) and global diversification (55% ex-U.S.) mitigate tariff exposure, but macroeconomic pressures and healthcare budget cuts loom.

Financial Outlook and Analyst Take
For 2025, Biogen projects non-GAAP EPS of $14.50–$15.50, despite a mid-single-digit revenue decline. The company’s $2.6 billion cash reserves and $222 million free cash flow provide ample liquidity to fund its pipeline.

Analysts remain cautiously optimistic. While 15 analysts lowered near-term earnings estimates, InvestingPro rated Biogen’s financial health as “GREAT” (3.0/5), citing strong profit margins and relative value. The stock’s 1.49% pre-market rise post-earnings and its 52-week trading range ($110.04–$238) suggest upside potential—if pipeline milestones materialize.

Conclusion: A Pivot Paying Dividends
Biogen’s Q1 results reflect a company in transition. While legacy MS drugs continue to decline, newer therapies and a robust pipeline are driving growth. The $200 million Q1 revenue from launches alone signals a turning point, and BIIB80’s Fast Track designation and Lekembi’s subcutaneous advancements position the company to dominate Alzheimer’s and rare disease markets.

The risks—biosimilar competition, regulatory hurdles, and macroeconomic pressures—are real, but Biogen’s financial health, diversified revenue base, and disciplined pipeline prioritization mitigate these concerns. With five Phase 3 trials underway and potential 2026 FDA approvals, the company is well-positioned to sustain growth. For investors, Biogen offers a compelling blend of near-term resilience and long-term innovation—a rare combination in today’s volatile biotech landscape.

As Biogen navigates this “tale of two companies,” its ability to balance declining legacy revenue with pipeline execution will determine its trajectory. The numbers suggest it’s on the right path—but the final chapter is still being written.