Analyst Conference Call Summary

biotechnology

conference date: July 29, 2026 @ 5:30 AM Pacific Time
for quarter ending: June 30, 2026 (second quarter, Q2 2026)

Forward-looking statements

Overview: Slow but solid revenue growth as new products more than compensate for those that lost exclusivity.

Basic data (GAAP):

Revenues were $2.74 billion, up 10% sequentially from $2.48 billion and up 3% from $2.65 billion in the year-earlier quarter.

Net income $98 million, down 69% sequentially from $320 million and down 85% from $635 million in the year-earlier quarter.

EPS (earnings per share, diluted) were $0.66, down 69% sequentially from $2.15 and down 85% from $4.33 year-earlier.

Guidance:

Increased 2026 guidance excluding IPRD impact and dilution from Apellis aquisition. Underlying guidance Non-GAAP diluted EPS $15.85 to $16.85, up $0.60 from prior. But new guidance is $12.00 to $13.00, down from $14.25 to $15.25. Revenue updated to a mid-single digit y/y increase.

Conference Highlights:

CEO Christopher A. Viehbacher said: "This quarter is a reflection of the significant progress Biogen has made repositioning the company for long term growth. Not only did our growth portfolio revenue exceed that of our legacy MS portfolio, delivering 24% of year-over year growth, we also delivered strong revenue performance from our two recently acquired products, providing an opportunity for our pipeline to build on a growing business. At the same time, our scientific leadership continues to translate into commercial momentum, with a successful launch of Spinraza HD and historic approval of Leqembi IQLIK at-home initiation. As we enter a period of registrational data readouts beginning this year, we are realizing our vision for the New Biogen one positioned for sustainable growth with a growing commercial business, a multi year late stage data flow, and an expanding early stage pipeline." Also rebuilding the early-stage pipeline.

In Q3 2026 (July 29) announced positive Phase 2 BIIB091 data for relapsing-remitting multiple sclerosis.

In Q2 2026 Biogen optioned BIIB147 from Ionis for ALS. Worldwide, paid $15 million upfront, possible future milestones and royalties.

In Q2 2026 Zurzuvae launched in Germany.

Registrational data for litifilimab in SLE is expected by end of 2026; additional Phase 3 readouts for litifilimab in CLE, felzartamab in AMR, and zorevunersen in Dravet syndrome anticipated in 2027. In Q2 2026 Diranersen demonstrated proof-of-concept in Alzheimer's disease for tau, so Biogen plans to advance it to Phase 3.

The pending RayThera acquisition is expected to add multiple immunology programs to Biogen's portfolio, with one lead program in Phase 1 development as of q2 2026.

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.

The Leqembi IQLIK SC-AI initiation (for treatment initiation, already approved for maintenance) is under review in the was approved in July 2026 by the FDA. Applied in Japan, and China. Leqembi global end market revenue was $184 million, up 15% y/y. IQLIK home administration should help v. competitor's once-monthly dosing.

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 completed in May 2026. Revenue from its commercial products were up 22% y/y. 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. Funded with $3.6 billion from cash and $2.0 billion additional borrowing.

In April 2026 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 for AMR (antibody mediated rejection) which could have a $2 billion addressable U.S. market. Data expected in H1 2027. Paid $100 million upfront, possible $750 million in milestones, plus royalties.

Non-GAAP net income was $536 million, up 1% sequentially from $529 million and down 33% from $803 million year-earlier. Non-GAAP EPS diluted was $3.60, up 1% sequentially from $3.57 and down 34% from $5.47 year-earlier.

Total product revenue was $1.92 billion, up 10% sequentially from $1.75 billion and up 2% from $1.88 billion year-earlier. That excludes the Rituxan revenue, Alzheimer's collaboration, royalties and other revenue. Contract manufacturing, royalty and other revenue was $242 million.

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

Cash and equivalents (including marketable securities) balance ended at $1.29 billion, down sequentially from $4.28 billion. $8.1 billion debt. $0 million was spent to repurchase shares. $449 million cash flow from operations. $41 million cap ex. $408 million free cash flow. $3.8 billion used in investing activities.

GAAP Cost of sales was $777 million. R&D expense was $530 million. Acquired in-process R&D expense $164 million. SG&A expense $710 million. Amortization of acquired intangible assets $168 million. Collaboration profit sharing income $69 million. Restructuring charges $165 million. Loss on contingent consideration $3 million. Other expense $19 million. Total cost and expenses $2.60 billion. Leaving income from operations of $132 million. Income tax $35 million.

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

Q&A selective summary:

HD Spinraza ramp? Spinraza still sets the bar for efficacy in this space. HD demand is driven by patients. Starts strong. Feedback quite positive. Payer approvals good. Most patients are upgrading from Spinraza, but seeing some new patients, including babies for the first time in years, and some switchbacks.

Lupus readout expectations, v. competition? Trial results in SLE in Q4. Controlling for heterogeneity. Trying to track Phase 3 trials to the Phase 2. XRI4 primary endpoint, but looking at totality of data. Litifilimab is truly differentiated. BTK inhibitor doses not disclosed yet. There is a huge unmet need, so a very good therapeutic area to enter.

We are working with the Syfovre team to improve the launch. June was the best month in the brand's history. Long-term five year data is helping. We noticed discontinuations started after first injection, we are now educating to lower the level of that.

BIIB091, BTK inhibitor, differentiation? In RRMS, in Phase 2, had good efficacy, but RRMS is a crowded market. We have not made a decision on advancing into a specific indication.

CLE v. SLE? We do not see a difference in terms of probability of success. Phase 2 trial was compelling. With CLE remain confident with focus on skin issues. We feel CLE is undertreated, so we could meet a high unmet need.

Talked about potential of empaveli for FSGS (focal segmental glomerulosclerosis), getting ready for Phase 2 trial.

We believe the Tau signal is real, so we decided to proceed, consulting with the neurology community and the FDA. But would be a long Phase 3 trial.

Brain shuttle delivery? We think it is important for Alzheimers, we are working on it.

AMR opportunity v. Biogen valuation? Where there is no treatment, there are no value analogs, so analysts want to see the data before assigning much value. No product is approved for AMR. There is a huge unmet need and the product seems to work.

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