Biogen 2025-26: Growth Products $3.3B (+19%), MS -Mid-Teens
FY25 revenue $9.81B (+1%); op income $1.88B (-25%); NI $1.29B (-21%); EPS $8.83 (-21%). Growth products $3.3B (+19%); 4 launch products >$1B revenue. LEQEMBI Q4 $134M (Eisai-booked). SKYCLARYS Q4 $133M (+30%). VUMERITY Q4 $181M. ZURZUVAE strong. Anti-CD20 Q4 $521M (+12%). FY26 guide: revenue mid-single decline; non-GAAP EPS $15.25-$16.25.
Key takeaways
- Growth products $3.3B FY25 (+19%) — a milestone. LEQEMBI + SKYCLARYS + ZURZUVAE + QALSODY each exceeded $1B cumulative since launch. Growth products in Q4 exceeded MS revenue (excluding VUMERITY) — the portfolio rotation flagship moment.
- MS franchise still $3B but declining. TYSABRI + VUMERITY + TECFIDERA all in decline (TECFIDERA generic erosion in Europe; biosimilar pressure on natalizumab). FY26 MS ex-VUMERITY -mid-teens.
- LEQEMBI is the Alzheimer's anchor — 60% market share. Subcutaneous formulation (PDUFA May 24); blood-based biomarkers; international expansion. Q4 booked end-market $134M (+1054% reflects accounting reset on Eisai split). Sustained momentum.
- Pipeline activity picked up. Felzartamab Phase 3 TRANSCEND (AMR); Litifilimab breakthrough designation (cutaneous lupus); Salanersen Phase 3 (SMA); Alcyone Therapeutics acquisition (ASO improvement); Vanqua + Dara Therapeutics collaborations; BIIB142 IRAK4 degrader.
- FY26 EPS $15.25-$16.25 conservative — up from $15.50-16.00 FY25 raise. Mid-single revenue decline + cost discipline + Fit for Growth $1B savings ($800M net) ongoing.
Business
Biogen Inc. is a US biopharma focused on neurological + rare disease. Three product franchises:
- Multiple Sclerosis (MS) Franchise (~31% of revenue, declining). TECFIDERA (generic erosion EU); TYSABRI ($398M Q4 — biosimilar pressure); VUMERITY ($181M Q4 — growth); plaster: $3B FY25 expected -mid-teens FY26 ex-VUMERITY.
- Rare Disease + Launch Products (~33%). SKYCLARYS (Friedreich's ataxia) — Q4 $133M (+30%); 34 markets globally. ZURZUVAE (postpartum depression) — strong growth. SPINRAZA (SMA) — Q4 $356M; high-dose Japan launch. QALSODY (ALS).
- Anti-CD20 (~21%). Royalties from Roche Ocrevus + RAPIVAB. Q4 $521M (+12% YoY).
- Other / Contract Manufacturing (~15%). $300M expected FY26 contract manufacturing revenue (each half).
Strategic moves FY25:
- LEQEMBI: 60% anti-amyloid market share; subcutaneous formulation (PDUFA May 2026)
- SKYCLARYS: 30 → 34 markets globally; Brazil approval; global launch ex-Asia
- ZURZUVAE: revenue doubled in 2025
- SPINRAZA: high-dose launch Japan
- iClick: PDUFA date May 24
- Litifilimab: FDA breakthrough designation cutaneous lupus
- Alcyone Therapeutics acquired (improved ASO patient injection experience)
- Vanqua Bio collaboration (C5aR1 antagonist)
- Dara Therapeutics collaboration
- Fit for Growth: $1B gross savings / $800M net savings on track
FY25 financial performance
| Metric (FY) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue ($B) | 10.17 | 9.84 | 9.68 | 9.81 |
| Revenue YoY | n/a | -3% | -2% | +1% |
| Op income ($B) | 2.89 | 2.10 | 2.49 | 1.88 |
| Op margin | 28.4% | 21.3% | 25.7% | 19.1% |
| Net income ($B) | 3.05 | 1.16 | 1.63 | 1.29 |
| Diluted EPS ($) | 20.87 | 7.97 | 11.19 | 8.83 |
| Non-GAAP EPS ($) | n/a | n/a | ~16.5 | ~16.0 |
| FCF ($B) | 1.14 | 1.24 | 2.52 | 2.05 |
| Capex ($M) | -240 | -311 | -360 | -154 |
| Total debt ($B) | 6.61 | 7.34 | 6.63 | 6.95 |
| Buyback ($M) | -750 | 0 | 0 | 0 |
Op income $1.88B FY25 (-25% vs $2.49B FY24) reflects pipeline + commercial investment + competitive pressures. Non-GAAP EPS roughly flat to FY24 reflects Fit for Growth + cost discipline offsetting top-line decline.
The growth-product transition is the structural story — getting the new franchises to compound while MS declines.
Capital allocation
- Capex: $-154M FY25 (-57% YoY). Capacity needs moderating.
- Dividends: $0 (suspended).
- Buybacks: $0 (vs $-750M FY22).
- M&A: Alcyone Therapeutics; Vanqua Bio; Dara collaboration.
- Debt: $6.95B (+5% YoY).
- FCF: $2.05B (-19% YoY).
FY26 outlook (per Q4 2025 call, 2026-02-06)
| FY26 framework | Detail |
|---|---|
| Total revenue | Mid-single-digit decline vs FY25 |
| MS product (ex-VUMERITY) | -mid-teens |
| Contract manufacturing revenue | ~$300M each half ($600M total) |
| Gross margin | Roughly consistent with FY25 |
| Core OpEx | Roughly consistent with FY25; Q1 +10% phasing |
| Non-GAAP diluted EPS | $15.25 to $16.25 |
Implied FY26 revenue ~$9.3B (down from $9.81B FY25). Operating leverage holds via Fit for Growth + portfolio mix shift. Conservative guide given dynamic environment + multiple PDUFA dates.
Key risks
- MS biosimilar / generic competition. TECFIDERA Europe generic erosion; TYSABRI biosimilar pressure. FY26 -mid-teens MS ex-VUMERITY decline already factored.
- LEQEMBI launch trajectory. Subcutaneous PDUFA May 2026; blood-based biomarker reimbursement uncertainty; CMS dynamics.
- Pipeline read-out outcomes. Multiple Phase 3 readouts + PDUFA dates in 2026 — clinical risk binary.
- Contract manufacturing. $600M revenue includes seasonality; not core to franchise.
- Eisai arbitration / commercialization. LEQEMBI commercial split arbitration with Eisai in Europe ongoing.
- CMS / Medicare reimbursement. Blood-based biomarker reimbursement + Medicare drug price negotiation impact.
Bottom line
BIIB FY25 is the portfolio inflection year: growth products $3.3B (+19%), MS still $3B but declining, LEQEMBI 60% market share + subcutaneous PDUFA May 2026, SKYCLARYS 34 markets / +30%, ZURZUVAE doubled. FY26 -mid-single revenue + non-GAAP EPS $15.25-$16.25 conservative on multi-PDUFA / pipeline year. Fit for Growth $1B savings cushion. Risks are MS decline timing + LEQEMBI execution + pipeline outcomes + reimbursement. Quality biotech mid-portfolio rotation; the question is when growth products outpace MS decline absolutely.
Citations
- Biogen Inc. FY25 Form 10-K (filed February 2026, SEC EDGAR).
- BIIB Q4 2025 earnings call, 2026-02-06 — growth products $3.3B (+19%); 4 products >$1B; LEQEMBI Q4 $134M booked by Eisai (+1054% vs Q3); SKYCLARYS Q4 $133M (+30%); FY26 guide ($15.25-$16.25 EPS, mid-single decline).
- BIIB Q3 2025 earnings call, 2025-10-30 — LEQEMBI subcu launched; SKYCLARYS 34 markets; Litifilimab Phase 3 fully enrolled; Alcyone Therapeutics acquired.
- BIIB Q2 2025 earnings call, 2025-07-31 — launch products $252M Q2 (+91% YoY); LEQEMBI U.S. +20% QoQ; ZURZUVAE +213% YoY; FY EPS raised $15.50-$16.
- BIIB Q1 2025 earnings call, 2025-05-01 — MS franchise -11% YoY; ZURZUVAE 10K women treated; LEQEMBI EU approval + IV maintenance; BIIB080 Fast Track.
- Internal financial_statements view (consolidated annual + cash flow + capital structure).