10-QPeriod: Q1 FY2025

BIOGEN INC. Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 1, 2025For Securities:BIIB

Summary

Biogen Inc. reported total revenue of $2.43 billion for the first quarter of 2025, a 6.1% increase year-over-year, driven primarily by growth in rare disease products and higher contract manufacturing revenue. However, net income attributable to Biogen Inc. decreased significantly by 39.0% to $240.5 million, or $1.64 per diluted share, compared to $393.4 million, or $2.70 per diluted share, in the prior year's quarter. This decline was largely due to increased acquired in-process R&D, upfront and milestone expenses, primarily related to the acquisition of HI-Bio and collaboration with Stoke Therapeutics, as well as higher cost of sales. Despite the decrease in profitability, the company's cash position strengthened to $2.6 billion. Key product segments showed mixed performance. While revenue from multiple sclerosis (MS) products declined 11.4% due to increased competition, particularly from generics and biosimilars, rare disease revenue surged by 32.9%. This growth in rare diseases was bolstered by strong performance from SPINRAZA, along with contributions from new launches like SKYCLARYS and QALSODY. Alzheimer's collaboration revenue from LEQEMBI also saw a substantial increase, reflecting its ongoing market penetration. The company also announced a new corporate headquarters lease in Cambridge, MA, and continued to advance its pipeline through strategic collaborations and research funding.

Financial Highlights

47 data points
Beta

Revenue

$2.43B

74.1% Gross Margin

Net Income

$240.50M

9.9% Net Margin

EPS (Diluted)

$1.64

Total Assets

$28.03B

Cash & Equivalents

$2.60B

Free Cash Flow

$222.20M

Financial Statements
Beta
Revenue$2.43B
Cost of Revenue$629.30M
Gross Profit$1.80B
SG&A Expenses$572.50M
Operating Expenses$2.12B
Interest Expense$60.00M
Net Income$240.50M
EPS (Basic)$1.65
EPS (Diluted)$1.64
Shares Outstanding (Basic)146.10M
Shares Outstanding (Diluted)146.60M

Key Highlights

  • 1Total revenue increased by 6.1% to $2.43 billion, primarily driven by growth in rare disease products and contract manufacturing.
  • 2Net income attributable to Biogen Inc. decreased by 39.0% to $240.5 million, with diluted EPS falling to $1.64.
  • 3Rare disease revenue experienced significant growth of 32.9% due to strong SPINRAZA performance and new product launches (SKYCLARYS, QALSODY).
  • 4Multiple Sclerosis (MS) revenue declined by 11.4% due to increased competition from generics and biosimilars for key products like TECFIDERA and TYSABRI.
  • 5Acquired in-process R&D, upfront and milestone expenses increased substantially, largely due to an upfront payment to Stoke Therapeutics and a milestone payment for felzartamab.
  • 6Cash and cash equivalents increased to $2.6 billion as of March 31, 2025.
  • 7Biogen entered into a new lease agreement for its future global corporate headquarters in Cambridge, Massachusetts.

Frequently Asked Questions

The primary driver for the decrease in net income was a significant increase in 'Acquired in-process research and development, upfront and milestone expense,' which rose by $193.2 million. This was largely due to an upfront payment of $165.0 million to Stoke Therapeutics for a collaboration and a $35.0 million milestone payment related to the felzartamab program. Additionally, cost of sales increased by 16.1%, impacting profitability.

Biogen's Multiple Sclerosis (MS) revenue decreased by 11.4% year-over-year, primarily due to declining sales of TECFIDERA and Interferon products, driven by increased competition from generics and biosimilars. TYSABRI revenue also saw a decrease due to biosimilar competition. The company anticipates continued decline in MS revenue for the remainder of 2025 due to ongoing competitive pressures.

The rare disease portfolio showed strong performance, with revenue increasing by 32.9%. This growth was driven by robust SPINRAZA sales, including a one-time VAT refund and timing of shipments, as well as contributions from new launches like SKYCLARYS and QALSODY. Biogen expects continued growth in this segment.

Alzheimer's collaboration revenue, which represents Biogen's share of LEQEMBI, increased significantly from $2.8 million in Q1 2024 to $33.0 million in Q1 2025. This reflects the ongoing commercialization and market penetration of LEQEMBI, including recent regulatory milestones such as the FDA approval of a monthly IV maintenance dosing and the EU approval.