Biogen Q4 Earnings: Revenue And EPS Beat, Warns Lower 2025 Revenue, Inks R&D Funding Pact With Royalty Pharma

On Wednesday, Biogen Inc BIIB reported fourth-quarter adjusted EPS of $3.44, up 17%, beating the consensus of $3.35.

The company reported sales of $2.46 billion, up 2% year over on constant currency and 3% on a reported basis, beating the consensus of $2.40 billion.

Multiple sclerosis revenue of $1.07 billion decreased by 8% (down 9% on constant currency). The multiple sclerosis drug Tysabri sales were down to $415.4 million from $464.7 million.

Also Read: FDA To Review Under the Skin Weekly Autoinjector For Biogen/Eisai's Alzheimer's Drug Leqembi

Rare disease revenue increased 13% year over year (up 15% on constant currency) to $535.3 million. Spinraza's revenue increased to $421.4 million from $412.6 million a year ago.

Revenues from Skyclarys, acquired via Reata acquisition, reached $102.2 million during the quarter.

In Alzheimer's disease, Biogen said Leqembi fourth quarter global in-market sales of approximately $87 million, including U.S. in-market sales of approximately $50 million, representing good continued sequential growth.

Postpartum depression drug Zurzuvae's fourth-quarter sales reached $22.9 million.

Guidance: Biogen forecasts a full year 2025 adjusted EPS of $15.25-$16.25 versus a consensus of $16.34.

Revenue is expected to decline by a mid-single-digit percentage for 2025 compared to 2024 as further declines in multiple sclerosis product revenues are expected to be partially offset by increases in revenue from product launches.

For 2025, as compared to 2024, Biogen expects the operating margin percentage to remain relatively flat.

The Fit for Growth program is expected to generate approximately $1 billion of gross savings and $800 million net of reinvestment by the end of 2025.

Since the program was initiated in 2023, approximately $400 million of net savings have been achieved, and Biogen expects to realize the balance by the end of 2025.

Biogen expects combined Non-GAAP R&D and SG&A expenses to total approximately $3.9 billion in 2025.

Royalty Pharma plc RPRX agreed to provide Biogen with R&D funding of up to $250 million for litifilimab for systemic lupus erythematosus (SLE) and cutaneous lupus erythematosus (CLE).

Litifilimab is currently in Phase 3 trials for SLE and CLE, with results expected between 2026 and 2027.

Price Action: BIIB stock is down 6.74% at $130 at the last check on Wednesday.

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