10-QPeriod: Q2 FY2026

BIOGEN INC. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 29, 2026For Securities:BIIB

Summary

Biogen Inc. reported total revenue of $2.74 billion for the three months ended June 30, 2026, a 3.4% increase from the prior year period. This growth was primarily driven by the inclusion of new specialized immunology products, SYFOVRE and EMPAVELI, acquired through the Apellis acquisition, and strong performance in rare disease products like SPINRAZA and SKYCLARYS. However, revenue from the Multiple Sclerosis portfolio, particularly TECFIDERA, saw a significant decline due to ongoing generic competition. Net income for the quarter was $97.5 million, a substantial decrease compared to $634.8 million in the same period last year, largely due to increased costs associated with the Apellis acquisition, including higher cost of sales, R&D expenses, and significant restructuring charges related to the integration. For the six months ended June 30, 2026, total revenue rose by 2.7% to $5.21 billion, while net income decreased to $417.0 million from $875.3 million in the prior year. The company's operational expenses saw a notable increase, driven by higher amortization from inventory step-ups, increased R&D spending on late-stage programs, and the expanded commercial operations of Apellis. Despite these cost pressures and the continued decline in the MS franchise, the company is focused on the growth of its rare disease and specialized immunology portfolios and strategic investments in its pipeline.

Key Highlights

  • 1Total revenue for Q2 2026 increased by 3.4% to $2.74 billion, driven by growth in rare disease and the addition of specialized immunology products from the Apellis acquisition.
  • 2Net income decreased significantly to $97.5 million in Q2 2026 from $634.8 million in Q2 2025, impacted by higher operating expenses and acquisition-related costs.
  • 3Multiple Sclerosis (MS) revenue declined by 13.0% in Q2 2026, primarily due to generic competition impacting TECFIDERA and a long-term trend of patients shifting away from interferon-based therapies.
  • 4Rare disease revenue grew by 10.8% in Q2 2026, bolstered by strong performance of SKYCLARYS, QALSODY, and the high-dose regimen of SPINRAZA.
  • 5Specialized Immunology revenue, generated by the newly acquired SYFOVRE and EMPAVELI from Apellis, contributed $127.8 million in Q2 2026.
  • 6Cost of sales increased by 28.4% in Q2 2026, significantly impacted by higher amortization of acquired inventory step-up adjustments and increased contract manufacturing costs.
  • 7The company completed the acquisition of Apellis Pharmaceuticals for approximately $5.3 billion, adding SYFOVRE and EMPAVELI to its portfolio, and also entered into a definitive agreement to acquire RayThera Inc.

Frequently Asked Questions

Biogen's revenue growth in the second quarter of 2026 was primarily driven by the inclusion of SYFOVRE and EMPAVELI, acquired through the Apellis acquisition, which contributed $127.8 million in specialized immunology revenue. Additionally, the rare disease portfolio, including SPINRAZA and SKYCLARYS, showed strong performance, with rare disease revenue increasing by 10.8% year-over-year. Growth in Alzheimer's collaboration revenue from LEQEMBI also contributed to the overall increase.

The substantial decrease in net income was primarily due to significantly higher operating expenses. This includes a 28.4% increase in cost of sales, largely driven by higher amortization of acquired inventory step-up adjustments related to the Apellis and Reata acquisitions, and increased R&D expenses driven by clinical trial spending and Apellis' operating costs. Furthermore, restructuring charges of $165.4 million, mainly related to the Apellis integration, and increased acquired in-process R&D, upfront and milestone expenses also impacted profitability.

The MS franchise experienced a 13.0% revenue decline in Q2 2026 compared to the prior year. This downturn is primarily attributed to the ongoing generic competition for TECFIDERA, which saw a 53.0% decrease in global revenue, and a general trend of patients shifting from interferon-based therapies to oral and more effective treatments. Biogen expects total MS revenue to continue declining in 2026 due to sustained competition for its MS products.

The acquisition of Apellis for approximately $5.3 billion, completed in May 2026, added the specialized immunology products SYFOVRE and EMPAVELI to Biogen's portfolio, which are expected to enhance short- and long-term revenue growth. However, the acquisition also contributed to a significant increase in debt, with $1.8 billion outstanding under the new term loan as of June 30, 2026. The integration of Apellis also led to increased operating expenses, including higher cost of sales and SG&A expenses, as well as restructuring charges.