10-QPeriod: Q2 FY2025

BIOGEN INC. Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 31, 2025For Securities:BIIB

Summary

Biogen Inc. reported total revenue of $2,645.5 million for the three months ended June 30, 2025, an increase of 7.3% compared to the same period in the prior year. This growth was primarily driven by a significant increase in Alzheimer's collaboration revenue (LEQEMBI) and contract manufacturing, royalty, and other revenue. However, product revenue experienced a slight decline of 1.1%, largely due to ongoing competition for its Multiple Sclerosis (MS) portfolio, particularly from generic versions of TECFIDERA and a TYSABRI biosimilar. Net income attributable to Biogen Inc. rose to $634.8 million, or $4.33 per diluted share, up from $583.6 million, or $4.00 per diluted share, in the prior year's quarter. This improvement was supported by the top-line growth and a substantial reduction in Research and Development (R&D) expenses, partially offset by higher cost of sales and selling, general, and administrative (SG&A) expenses. The company ended the period with a strong liquidity position, with cash and cash equivalents totaling $2.8 billion.

Financial Highlights

48 data points
Beta

Revenue

$2.65B

77.1% Gross Margin

Net Income

$634.80M

24.0% Net Margin

EPS (Diluted)

$4.33

Total Assets

$28.33B

Cash & Equivalents

$2.76B

Free Cash Flow

$134.30M

Financial Statements
Beta
Revenue$2.65B
Cost of Revenue$605.00M
Gross Profit$2.04B
SG&A Expenses$583.80M
Operating Expenses$1.90B
Interest Expense$72.60M
Net Income$634.80M
EPS (Basic)$4.33
EPS (Diluted)$4.33
Shares Outstanding (Basic)146.50M
Shares Outstanding (Diluted)146.70M

Key Highlights

  • 1Total revenue increased by 7.3% to $2,645.5 million for the three months ended June 30, 2025, compared to $2,464.9 million in the prior year.
  • 2Product revenue, net, decreased slightly by 1.1% to $1,878.7 million, impacted by MS portfolio competition.
  • 3Alzheimer's collaboration revenue (LEQEMBI) surged by 365.3% to $54.9 million, indicating strong uptake.
  • 4Net income attributable to Biogen Inc. increased to $634.8 million ($4.33 per diluted share) from $583.6 million ($4.00 per diluted share) in the prior year.
  • 5Research and Development (R&D) expenses decreased by 21.1% to $399.0 million, reflecting cost optimization and portfolio prioritization.
  • 6Acquired IPR&D, upfront and milestone expense increased significantly to $46.6 million due to new collaboration payments.
  • 7Cash and cash equivalents stood at $2.8 billion as of June 30, 2025, demonstrating a healthy liquidity position.

Frequently Asked Questions

The primary driver of Biogen's revenue growth was a significant increase in Alzheimer's collaboration revenue from LEQEMBI, alongside strong performance in contract manufacturing, royalty, and other revenue streams. This offset a slight decline in product revenue.

Biogen's product revenue declined by 1.1% primarily due to increased competition for its Multiple Sclerosis (MS) portfolio, specifically the impact of generic entrants for TECFIDERA and biosimilar competition for TYSABRI, particularly outside the U.S. While some products like VUMERITY and newer launches like SKYCLARYS and QALSODY showed growth, they couldn't fully offset the declines in established MS products.

Biogen expects its MS revenue to continue declining in 2025 due to ongoing and accelerating competition from generics and biosimilars for many of its MS products in both the U.S. and international markets. This includes expected impacts from TECFIDERA generic competition in Europe and TYSABRI biosimilar competition.

R&D expense decreased by 21.1% to $399.0 million for the three months ended June 30, 2025. This reduction is attributed to ongoing cost-saving measures from portfolio prioritization and the 'Fit for Growth' program, as well as funding received from Royalty Pharma for the litifilimab program. However, R&D spend increased for certain clinical trials, particularly for litifilimab and felzartamab.

Biogen maintains a strong liquidity position with cash and cash equivalents totaling $2.8 billion as of June 30, 2025. The company also issued $1.75 billion in Senior Notes in May 2025 and used the proceeds to redeem its 4.050% Senior Notes due September 15, 2025. Total borrowings remain substantial but were slightly down compared to the prior year-end.