Biogen Inc. ((BIIB)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Biogen Inc. Reports Strong Quarter with Positive Earnings Call Sentiment
Biogen Inc.’s recent earnings call reflected a robust quarter, characterized by significant growth from new product launches and positive pipeline developments. Despite facing challenges in international markets and partnership disagreements, the company’s improved financial outlook led to raised guidance. Overall, the highlights of the quarter outweighed the lowlights, indicating a positive sentiment.
Strong Growth from New Product Launches
Biogen’s new product launches were a major highlight, generating $252 million in revenue. This marked a 26% increase quarter-over-quarter and a 91% increase year-over-year, effectively offsetting declines in the company’s MS portfolio. This growth underscores the successful execution of Biogen’s product strategy.
LEQEMBI Revenue Growth
LEQEMBI demonstrated impressive revenue growth, with a 20% quarter-over-quarter increase in the U.S. and a 34% rise in new prescribers year-to-date. Globally, excluding the impact of shipment timing in China, LEQEMBI’s sales grew 29% sequentially and 211% year-over-year, highlighting its expanding market presence.
Positive Developments in Pipeline
Biogen made significant strides in its pipeline, initiating three Phase III studies and receiving a positive CHMP opinion for zuranolone in Europe. Additionally, the company announced promising interim Phase Ib data for salanersen in SMA, demonstrating proof of concept and reinforcing its commitment to innovation.
Raised Full Year 2025 Financial Guidance
Reflecting a stronger business outlook, Biogen raised its full-year 2025 non-GAAP diluted earnings per share guidance to $15.50-$16, up from $14.50-$15.50. This adjustment underscores the company’s confidence in its future performance.
Expansion of Blood-Based Biomarker Testing
Biogen reported a 50% growth in blood-based biomarker testing over the past six months, with nearly a threefold increase over the past year. This indicates a high level of awareness and willingness to adopt these innovative tests.
Ex-US MS Business Facing Competitive Pressures
The ex-US MS business is expected to encounter increasing competitive pressures in the second half of 2025, particularly for TECFIDERA in Europe. This presents a challenge that Biogen will need to navigate carefully.
Arbitration with Eisai on European Commercialization
Biogen has initiated arbitration against Eisai regarding commercialization allocations in Europe, suggesting potential disagreements in their partnership. This development could have implications for Biogen’s operations in the region.
SPINRAZA Inventory Drawdown Impact
The ex-US SPINRAZA business was negatively impacted by an inventory drawdown from the first quarter, a trend expected to continue into Q3. This has affected the company’s performance in this segment.
Potential Incremental Interest Expense
Biogen anticipates an incremental interest expense of approximately $15 million to $20 million in the second half of 2025 due to recent financial transactions. This is an important consideration for the company’s financial planning.
Forward-Looking Guidance
Biogen’s forward-looking guidance reflects a positive trajectory, with a 7% revenue growth for the quarter, driven by strong execution of newly launched products. The company raised its full-year 2025 guidance for non-GAAP diluted EPS to $15.50-$16, indicating a stronger business outlook. Biogen also emphasized progress in its pipeline, with multiple Phase III studies initiated and promising interim data for salanersen in SMA. The company remains committed to exploring business development opportunities to drive shareholder value.
In summary, Biogen Inc.’s earnings call painted a positive picture of the company’s current and future performance. With strong growth from new product launches, positive pipeline developments, and an improved financial outlook, Biogen is well-positioned for continued success. However, challenges in international markets and partnership disagreements remain areas to watch.