Analyst Conference Call Summary

biotechnology

conference date: October 28, 2026 @ 5:30 AM Pacific Time
for quarter ending: September 30, 2026 (third quarter, Q3 2026)

Forward-looking statements

Overview: Excellent quarter, 11% y/y revenue growth on several new drugs, notably Zurzuvae and Leqembi. But IRPD charges hurd GAAP net income and EPS.

Basic data (GAAP):

Revenues were $2.80 billion, up 2% sequentially from $2.74 billion and up 11% from $2.54 billion in the year-earlier quarter.

Net income negative $21 million, down sequentially from $98 million and down from $467 million in the year-earlier quarter.

EPS (earnings per share, diluted) were negative $0.14, down sequentially from $0.66 and down % from $317 year-earlier. Loss due to $284 million IPR&D from RayThera acquisition.

Guidance:

Raised 2026 non-GAAP EPS guidance bottom of range slightly to $12.20 to $13.00 per share. Without IRPD and dilution from Apellis, range would be $15.95 to $16.75 per share. For Q4 expects another $50 million in IRPD.

Conference Highlights:

CEO Christopher A. Viehbacher said: "Our third quarter results demonstrate that Biogen has returned to growth. We're seeing the strength of our Growth Portfolio, including the first full quarter of results from Apellis products, which helped drive double digit revenue growth and an approximately 50% year-over year increase from our growth products. With multiple Phase 3 readouts expected over the next 12 months, we are positioned to further strengthen our long-term growth profile and create sustainable value for patients and shareholders." Apellis integration has gone better than expected; this was the first full quarter of Apellis integration. Operating dilution is now almost negligible. Future focus is on the new growth products. The readouts over the next 12 months, if positive, could have A $12 billion addressable market. Also rebuilding an early-stage pipeline after recently going 3 years without an IND (but had 5 in 2026).

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

Net income and EPS were diminished by the $284 million IRPD charges, increased cost of sales from Reata and Apellis aquisitions, and product mix. R&D expense increased due to clinical trials. Apellis acquisition also added sales and marketing expense.

Over the next year Biogen expects top line Phase 3 data from litifilimab in CLE, felzartamab in antibody mediated rejection, and zorevunersen for Dravet Syndrome. In December 2026 expects top line data for the two Phase 3 litifilimab SLE studies.

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.

Biogen also has a strong pipeline of new drugs and indications that could have registrational readouts in 2028 to 2030 [see slide 10].

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.

Non-GAAP net income was $391 million, down 27% sequentially from $536 million and down 45% from $708 million year-earlier. Non-GAAP EPS diluted was $2.62, down 27% sequentially from $3.60 and down 46% from $4.81 year-earlier.

Total product revenue was $2.09 billion, up % sequentially from $1.92 billion and up 13% from $1.85 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 $1.3 billion, down sequentially from $ billion. $7.7 billion debt. $0 million was spent to repurchase shares. $641 million cash flow from operations. $40 million cap ex. $600 million free cash flow. $400 million was used to repay term loan from Apellis acquisition.

GAAP Cost of sales was $748 million. R&D expense was $574 million. Acquired in-process R&D expense $284 million. SG&A expense $752 million. Amortization of acquired intangible assets $173 million. Collaboration profit sharing income $78 million. Restructuring charges $67 million. Loss on contingent consideration $0 million. Other expense $137 million. Total cost and expenses $2.81 billion. Leaving income from operations of negative $9 million. Income tax $12 million.

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

Q&A selective summary:

Litifilimab SLE data expectations? Lupus is heterogeneous. Designed trial to optimize outcomes. Readouts should come in first half of December.

felzartamab AMR (antibody mediated rejection) data, sales ramp? Believe around 11,000 current patients, but some are already to late to get the product. Doctors and positive about method of action. Patients must be on protocol to get treated, so a bolus plus a gradual ramp. The system is in place for the bolus. Pricing will reflect significant value and a year or more of dosing. MVI will be incremental to AMR.

Litifilimab patient baseline characteristics? Interferon gene signiture is expected to be high across the board.

Litifilimab SLE? Interferon high subgroup? We believe we have the right endpoint, focussed on skin and joints. Still can pool trials depending on actual data.

Syfovre sales? We have worked to reduce free goods. Team has done well on improving the sentiment on treating GA. Doctors more will to do more injections. Discons after first month are still high, but we are working on that. Patients need to understand Syfovre is not a cure, it slows progression, so they think the first dose has not worked. DTC campaign will be resumed in 2027.

[inaudible]? SLE and CLE are high unmet need areas. Mechanism of action worked for both in Phase 2 trials. Systemic lupus is more heterogeneous. Must wait for final data.

Spinraza high dose conversions? Pleased with high-dose performance. Great for a rare disease launch. Launch in Europe successful. 70% of 12 mg patients have now submitted a start form. We are seeing some patients switching back from other products. Salenersen is already expected by the community, if we get an approval for it.

Leqembi iQlik? Part D had been restrictive, but now at least 50%, should improve in 2027. Reframing convenience. Expect the market to grow.

Investment priorities? Depending on trial results, looking forward to spending on launches. Lupus will need a lot of investment. Investors have waited a long time for us to grow, so we want to expand the bottom line, but continue to invest in the pipeline. If our pipeline is successful, we may not need external acquisitions to grow in the next decade. But we can be opportunistic.

CLE and SLE are separate, but about 50,000 patients have both. CLE is life ending (disfiguring). CLE prescribers, especially dermatologists, want to know the drug works and is safe. We will need more education for CLE.

Felzartamab IgAN, trial design? Proteinuria is not the best marker. Updating primary endpoint to EGFR.

Guidance? Q3 had a significant tailwind on HD. Plus Skyclaris inventory dynamics. So pullforward to Q3 impacts Q4.

SLE competition? We are working on positioning our two potential SLE products. Fatigue could be a differentiator. First line success will be data dependent, but also must address bariers. We believe we are well set with our commercialization team.

Skyclaris inventory, patient growth? Expect continued growth. We have tools to help us find new patients and get them on product. Discontinuations have decreased. So we see continued y/y growth, put the pediatric indication would be the next major growth opportunity. We also expect growth from Brazil.

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