Biogen Beats Q2 Estimates on New Drug Sales But Cuts Full-Year Profit Forecast

Biogen (BIIB) reported second-quarter revenue and profit that exceeded analyst estimates, buoyed by strong performance from its newer rare-disease medicines. However, the company lowered its full-year profit outlook to reflect costs associated with its recent acquisition of Apellis Pharmaceuticals, according to a report from Reuters.

Earnings Beat, Guidance Cut

For the quarter ended June 30, Biogen posted strong results that outpaced market expectations:

• Adjusted Earnings Per Share: $3.60, compared to the LSEG consensus estimate of $2.95.
• Quarterly Revenue: $2.74 billion, above the analyst expectation of $2.46 billion.

Despite the quarterly beat, Biogen revised its full-year 2026 adjusted profit forecast downward to a range of $12.00 to $13.00 per share from its previous guidance of $14.25 to $15.25. The company attributed the reduction to a $3.85 per share impact from acquisition-related charges. The new forecast brackets the analyst consensus of $12.72 per share.

Shifting Product Mix

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The results highlight a strategic shift in Biogen's revenue streams as it contends with declining sales from its established multiple sclerosis (MS) drugs. Sales from this legacy portfolio, including the drug Tecfidera, fell 13% year-over-year to $963 million due to mounting competition and pricing pressure.

Conversely, newer products are showing growth. Global sales of the Alzheimer’s drug Leqembi, which Biogen co-developed with Eisai, increased 15% from the prior year to approximately $184 million. The company anticipates that recent U.S. approval for an under-the-skin formulation of Leqembi will further accelerate patient uptake.

Acquisition Impact

Investors are closely monitoring Biogen's strategy to reignite growth through acquisitions. The company's $5.6 billion buyout of Apellis Pharmaceuticals earlier this year is a key part of this effort, providing Biogen with a portfolio of two approved rare disease drugs and a foothold in the kidney disease market.

Biogen stated the Apellis deal will account for an 85-cent-per-share negative impact on its annual profit. The acquired drugs generated combined revenue of approximately $689 million last year, according to the report.