Analyst Conference Call Summary

biotechnology

conference date: April 29, 2026 @ 5:00 AM Pacific Time
for quarter ending: March 31, 2026 (first quarter, Q1 2026)

Forward-looking statements

Overview: Relatively good quarter, beats analyst estimates, not great revised guidance, Leqembi and Zurzuvae sales stronger.

Basic data (GAAP):

Revenues were $2.48 billion, up 9% sequentially from $2.28 billion and up 2% from $2.43 billion in the year-earlier quarter.

Net income $320 million, up sequentially from negative $49 million and up 33% from $241 million in the year-earlier quarter.

EPS (earnings per share, diluted) were $2.15, up sequentially from negative $0.33 and up 31% from $1.64 year-earlier.

Guidance:

Full year 2026 revenue down mid-single digit % vs. 2025. Non-GAAP EPS $14.25 to $15.25, excluding Apellis transaction impact. $1.00 IPRD impact. Will update after Apellis closes in Q2.

Conference Highlights:

CEO Christopher A. Viehbacher said: "We significantly advanced our transformation into the New Biogen through strong commercial and pipeline execution and the announcement of our intent to acquire Apellis. We believe the planned acquisition of Apellis will bolster our revenue and earnings growth, adding two differentiated commercial medicines and deepening the foundation for felzartamab, our key Phase 3 asset in kidney disease. This acquisition and the acquired rights to felzartamab in China come while we also expanded sales of our growth products, demonstrated continued resilience in our MS portfolio and reported important positive new data that reinforce our confidence in the late-stage pipeline." Had a very strong start to the year. Growth products generated $850 million in Q1, up 12% y/y. Hopes for significant revenue expansion by 2030.

Sees no material impact to business in 2026 from tariffs.

Guidance for 2026 of $1.00 less non-GAAP diluted EPS is due to IPRD charges expected from Apellis transaction.

In Q1 2026 the FDA granted Breakthrough Therapy Designation to litifilimab in cutaneous lupus (CLE). Both litifilimab Phase 3 systemic lupus (SLE) studies are fully enrolled and expected to read out in Q4 2026. Lupus is a very competitive area, but physicians are seeing something special. Phase 2 CLE trial showed meaningful reduction in disease.

In Q1 2026 Biogen began a Phase 1 trial of BIIB145, a BTK degrader.

The Leqembi IQLIK SC-AI initiation (for treatment initiation, already approved for mainenance) is under review in the U.S., Japan, and China with FDA PDUFA May 24, 2026. Patients are staying on drug beyond 18 months. Leqembi global end market revenue was $168 million.

2026 begins a multi-year registrational data flow peaking in 2028 to 2030.

Spinraza high dose regimen approved by FDA in April 2026. Salanersen for SMA additional Phase 1b data for children was very strong.

Apellis Pharmaceuticals acquisition completion expected in 2026. Should be accretive to profits in 2027 and increase Biogen's growth rate through the end of the decade. High conviction for Empaveli and Syfovre. Will help with sales to nephrology sector. Expects to fund purchase with $3.6 billion from cash and $2.0 billion additional borrowing.

In April Biogen agreed to acquire felzartamab development and commercial rights in China from TJ Biopharma. Now has worldwide rights in IgAN and PMN. In Phase 3. Agreed to $100 million upfront, possible $750 million in milestones, plus royalties.

Non-GAAP net income was $529 million, up 80% sequentially from $294 million and up 19% from $443 million year-earlier. Non-GAAP EPS diluted was $3.57, up 79% sequentially from $1.99 and up 18% from $3.02 year-earlier.

Total product revenue was $1.75 billion, up 5% sequentially from $1.67 billion and up 1% from $1.727 billion year-earlier. That excludes the Rituxan revenue, Alzheimer's collaboration, royalties and other revenue. Contract manufacturing, royalty and other revenue was $347 million.

* unconsolidated joint business revenue, Anti-CD20 products
** mainly contract manufacturing

Cash and equivalents (including marketable securities) balance ended at $4.28 billion, up sequentially from $4.2 billion. $6.3 billion debt. $0 million was spent to repurchase shares. $646 million cash flow from operations. $51 million cap ex. $594 million free cash flow.

GAAP Cost of sales was $661 million. R&D expense was $539 million. Acquired in-process R&D expense $34 million. SG&A expense $607 million. Amortization of acquired intangible assets $137 million. Collaboration profit sharing income $74 million. Restructuring charges $8 million. Loss on contingent consideration $21 million. Other expense $20 million. Total cost and expenses $2.10 billion. Leaving income from operations of $378 million. Income tax benefit $320 million.

See also the Biogen product pipeline. The entire pipeline includes 27 clinical programs.

Q&A selective summary:

BIIB080 data goals? Aims to reduce Tau. Antibodies have not worked. Saw Tau reduction in Phase 1b. Looking for Tau decrease leading to clinical data. Expected mid-year. Trial enrolled quickly. Looking at other delivery options. Believes is properly powered based on 1b data.

Other 2026 catalysts, SLE, CLE? Excited about litifilimab. Expect readouts early next year. Looking at totality of data. Has Breakthrough Designation.

Business development further plans? We feel good about our late stage pipeline. So would be looking at early stage research and development. On M and A we would be opportunistic, not searching right now.

Leqembi blood based biomarkers? Growing at a rapid clip, but not used solely for confirmation. Believes will continue to increase, CMS did add can be used for confirmation. Patients mostly want to stay on product, many want to switch to Leqembi for maintenance.

Coming competition for Apellis drugs? For geographic atrophy, it leads to blindness in about 6.5 years. Apellis data on lesion growth long-term is very good. Agrees there is competition both targetting C5 and others. Have seen several failures in GA. Will take competitors significant time to produce compelling data. Plans direct to consumer ads as GA is undertreated.

High dose Spinraza? The impetus was from patients. 20% of patient base has applied to go to HD, and also good interest for switching from competitors. Patient base tends to be well-educated. Seeing the same in Europe. Patients who switch off of Spinraza typically due to intrathecal fatigue, HD should help with that. Has saved the lives of many children already.

Skyclarys traction? Up y/y, down q/q because of inventory buildup in Q4. Patient demand continues to expand. Still in launch in U.S. and Latin America. Seeing older patients than we had predicted, takes time to find them. Now available in 35 countries.

Believes total addressable Felzartamab market for AMR is $2 to $3 billion. Hopes CD38 target means effective without suppressing the rest of the immune system. Also seems to have a long effect.

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