Biogen Inc. (BIIB) Earnings

Management highlights

### Portfolio Transformation & Growth Strategy - Biogen's growth product portfolio (including post-Apellis acquisition products) now exceeds the legacy MS portfolio in revenue, returning Biogen to a sustainable growth trajectory - The strategic growth framework is structured in three waves: current marketed growth products, upcoming late-stage pipeline data, and long-term early-stage innovation - M&A activity will now be more opportunistic for near-term growth, with a focused intentional strategy for acquiring early-to-mid stage development assets - Therapeutic breadth has expanded significantly beyond neurology and MS to now include rheumatology, dermatology, nephrology, and epileptology ### Key Commercial Milestones - High-dose Spinraza has been approved in Japan, Europe, and the US, with faster-than-expected patient conversion; physicians and patients have reported strong positive feedback, with anecdotal switchback from competing oral SMA therapies - FDA approval was granted for Lekembe iClick, the first home subcutaneous dosing option for both initiation and maintenance of Alzheimer's treatment, which is expected to expand patient eligibility, improve treatment retention, and deliver a competitive advantage over monthly IV competitors - The Apellis acquisition closed on May 14, 2026; integration is progressing ahead of expectations with maintained revenue continuity, and both Cyphovry and Empaveli have delivered strong post-close growth - Three new Investigational New Drug (IND) applications have been filed in 2026 to date, with more planned, following a full overhaul of Biogen's research organization ### Pipeline Progress - Biogen currently has one of the strongest and most diversified late-stage pipelines in its history, with five Phase 3 registrational readouts expected over the next four quarters across systemic lupus erythematosus (SLE), cutaneous lupus erythematosus (CLE), antibody-mediated rejection (AMR), and Dravet syndrome - New real-world evidence for continuous Lekembe treatment and proof-of-concept data for dirinersen in Alzheimer's disease was presented at AAIC; dirinersen (anti-tau therapy) is a long-term high-risk, high-reward opportunity that will not impact near-term growth - Phase 3 readouts for talzadumab in AMR and litofilumab in CLE have been accelerated to H1 2027 - The Raythera acquisition is expected to close in Q3 2026, adding a Phase 1 immunology asset to the early-stage pipeline - BIB91 (BTK inhibitor for relapsing-remitting MS) achieved proof-of-concept, but next steps are under evaluation due to the highly competitive nature of the RRMS market ### Financial & Operational Integration Updates - The Apellis acquisition is expected to generate at least $250 million in run-rate synergies by the end of 2027, primarily from G&A and R&D expense optimization - $1.3 billion in cash and $6.8 billion in net debt were held at quarter end; $200 million of acquisition-related term loan has been repaid, with full repayment expected by the end of 2027

Guidance

- Total revenue guidance was revised upward from a mid-single-digit percentage decrease to a mid-single-digit percentage increase YoY, driven by stronger-than-expected performance of existing growth products, resilient Tysabri demand, and the addition of Cyphovry and Empaveli from the Apellis acquisition - Core operating expenses for H2 2026 are expected to be between $2.65 billion and $2.7 billion - Updated 2026 full-year non-GAAP diluted EPS guidance is $12 to $13, incorporating: ~$3 of non-GAAP EPS impact from IPR&D and milestone charges, 85 cents of non-GAAP EPS dilution from the Apellis acquisition (primarily driven by financing costs), and strategic pipeline investment costs - The Apellis transaction is expected to be accretive to non-GAAP diluted EPS in 2027 - Cyphovry and Empaveli are expected to deliver combined mid-to-high teen annual revenue growth through at least 2028 - Full term loan repayment related to the Apellis acquisition is expected by the end of 2027

Segment performance

Total Q2 2026 core pharmaceutical revenue was $1.8 billion, up 4% year-over-year (YoY) and 12% quarter-over-quarter (QoQ). Growth Portfolio (57% of total core pharmaceutical revenue, $1.061 billion total, up 24% YoY): - Biogen standalone growth products (ex-Apellis): $933 million, up 9% YoY and 10% QoQ, exceeding legacy MS portfolio revenue - Spinraza: $402 million, up 2% YoY and 7% QoQ; growth driven by high-dose regimen conversion, with faster-than-expected adoption - Femerity: $197 million, down 7% YoY but up 10% QoQ; H1 2026 revenue up 7% YoY - Lekembe: $184 million, up 15% YoY and 9% QoQ; growth across US, Japan, and China - Skyclaris: $168 million, up 29% YoY and 11% QoQ; available in 36 countries, with growth driven primarily by ex-US launch expansion - Zerzuvae: $71 million, strong underlying demand growth, newly launched in Germany - Cyphovry (post-Apellis acquisition, May 14): $162 million, up 8% YoY and QoQ; total commercial injections up 13% YoY, market leader in geographic atrophy - Empaveli (post-Apellis acquisition, May 14): $46 million, up 123% YoY and 12% QoQ; strong launch growth for C3G and primary ICMPGN Legacy MS Portfolio (43% of total core pharmaceutical revenue): - Tysabri: $451 million, down 1% YoY but up 2% QoQ; demonstrated resilient demand despite biosimilar competition in the US and Europe Other Revenue: - Anti-CD20 royalties and profit share: $514 million, up 10% YoY, driven by Okravis subcutaneous launch and resilient Metuxin demand in the US - Total company revenue: $2.7 billion, up 3% YoY

Risks & headwinds

- Late-stage clinical trial outcomes are uncertain; placebo response rates and patient heterogeneity in SLE trials may impact trial results - The legacy MS market is highly competitive, with biosimilar competition already impacting Tysabri revenue, and the RRMS market for new assets is already crowded - Dirinersen (anti-tau Alzheimer's therapy) is a high-risk, high-reward early-stage asset, with no guarantee of successful Phase 3 development or approval - Financing costs from the Apellis acquisition will dilute 2026 non-GAAP EPS - Commercial adoption of new products like high-dose Spinraza and Lekembe iClick depends on payer approval and reimbursement access - Achieving projected synergies from the Apellis acquisition relies on successful full organizational integration

Analyst Q&A

• Q: How is the ramp of high-dose Spinraza progressing compared to expectations, what is the level of patient conversion and switching from competing products?

  A: High-dose Spinraza launch metrics (starts and fills) in the first 13 weeks of US launch have exceeded the original launch of standard-dose Spinraza, with weekly growth. Most early volume comes from existing patients converting from 12mg Spinraza to high-dose, but there are also new patient starts (including infant patients, who had not been dosed in years) and switchbacks from the competing oral SMA therapy Evrizdi. Early markets (Japan, Europe, particularly Germany) are already seeing a reversal of the trend of patients switching to oral therapy, with patients moving back to high-dose Spinraza, driven by improved efficacy, a reduced number of required loading doses, and strong patient and physician satisfaction.

• Q: What clinical separation from placebo would be considered a success for litofilumab in SLE, and what is the commercial outlook for the lupus franchise?

  A: Management declined to speculate on the required magnitude of separation, noting that trials are well-designed to control for high placebo response and patient heterogeneity, with a primary endpoint of SRI-4 and multiple secondary endpoints including steroid sparing and patient-reported outcomes. Commercially, there is substantial unmet need: less than 5% of CLE patients receive advanced therapy, no approved CLE therapy currently exists, and existing marketed treatments have well-documented efficacy and safety downsides. Biogen has built a dedicated experienced lupus commercial and medical team, and expects significant long-term opportunity for a product that works in both SLE and CLE.

• Q: What is driving Cyphovry growth, and what should be expected for future growth trajectory?

  A: June 2026 was the best single month in Cyphovry's history, with growth across both new prescribing physicians and new patient starts. Long-term 5-year clinical data has improved HCP sentiment around Cyphovry's ability to slow geographic atrophy progression. Only 20% of GA patients are diagnosed and only 50% of retina specialists currently treat the condition, leaving substantial room for expansion. Upcoming growth drivers include a planned direct-to-consumer campaign and the launch of a pre-filled syringe that will improve physician office workflow. Management has also identified that most patient discontinuations occur after the first injection (rather than after one year as previously believed) and is implementing targeted patient and physician education to reduce early drop-off, which is expected to further improve growth.

• Q: What initial demand has been seen for Lekembe iClick, and how do access dynamics look?

  A: Lekembe iClick will be commercially available by the end of August 2026; field teams are already trained and HCP education is underway, with several hundred scripts already written and held in a queue for launch. Payer Part D contracting for 2027 is still pending, but the medical exception approval rate for iClick maintenance has been very high (higher than most therapeutic areas), so access will be available even for non-contracted plans. Market research shows that a large portion of patients drop out of Alzheimer's treatment specifically to avoid IV infusion, so iClick is expected to expand the overall treated patient population and drive durable Lekembe growth once launched.