Biogen's Q4 Earnings: Revenue and EPS Beat, but 2025 Revenue Guidance Misses

Biogen Inc. (NASDAQ: BIIB) reported its fourth-quarter earnings on Wednesday, with adjusted earnings per share (EPS) of $3.44, up 17% year-over-year, and revenue of $2.46 billion, up 3% year-over-year. However, the company's guidance for 2025 revenue missed analysts' expectations, reflecting the impact of a strong dollar and fierce competition in the multiple sclerosis (MS) drug market.

Biogen's earnings beat was driven by strong growth in its rare disease segment, with revenues increasing by 13% year-over-year (up 15% on a constant currency basis) to $535.3 million. Spinraza, the company's treatment for spinal muscular atrophy, saw its revenue increase to $421.4 million from $412.6 million a year ago. Additionally, Skyclarys, acquired via the Reata Pharmaceuticals acquisition, generated $102.2 million in revenue during the quarter.

In Alzheimer's disease, Biogen reported that Leqembi generated approximately $87 million in global in-market sales during the quarter, including $50 million in the U.S. This represents good continued sequential growth for the drug. The company also reported strong sales for its postpartum depression drug Zurzuvae, with fourth-quarter sales reaching $22.9 million.

However, Biogen's multiple sclerosis revenue decreased by 8% (down 9% on a constant currency basis) to $1.07 billion, as sales of its Tysabri drug fell to $415.4 million from $464.7 million. The company attributed this decline to fierce competition and patent issues in the MS drug market.

For 2025, Biogen expects revenue to decline by a mid-single-digit percentage compared to 2024, as further declines in multiple sclerosis product revenues are expected to be partially offset by increases in revenue from product launches. The company also expects its operating margin percentage to remain relatively flat in 2025 compared to 2024.

Biogen's Fit for Growth program, initiated in 2023, is expected to generate approximately $1 billion of gross savings and $800 million net of reinvestment by the end of 2025. The company has already achieved approximately $400 million of net savings since the program's inception and expects to realize the remaining balance by the end of 2025.