Biogen Inc. (NASDAQ: BIIB) announced robust financial results for the first quarter of 2025 ending March 31, 2025, highlighting sustained growth in its commercial portfolio and strategic pipeline advancements. This authoritative analysis presents key financial data, incorporating quantitative statistics and tying these insights with themes from prior earnings commentary.
Total revenue was $2.43 billion, increasing 6% year-over-year (YoY) and 8% on a constant currency basis compared to Q1 2024.
GAAP diluted earnings per share (EPS) stood at \(1.64, while Non-GAAP diluted EPS was \)3.02. The EPS included approximately a \(0.95 negative impact due to a \)165 million upfront payment to Stoke Therapeutics for a collaboration on zorevunersen.
Product revenue rose by 1% at actual currency and 3% at constant currency, supported partly by shipment timings for SPINRAZA.
Multiple sclerosis (MS) product revenue declined 11% YoY; however, rare disease revenues increased sharply by 33%, driven by SPINRAZA, SKYCLARYS, and QALSODY growth.
Biosimilars revenue decreased by 8%, whereas contract manufacturing, royalty, and other revenues surged by 61%, reflecting successful business transformation initiatives.
Notably, Alzheimer’s collaboration revenue jumped from \(3 million to \)33 million YoY, indicating growing contribution from new launches.
LEQEMBI’s first-quarter global in-market sales were approximately \(96 million, with U.S. sales around \)52 million, demonstrating sequential sales growth, aligning with strategic commercial expansion described in prior earnings calls.
SKYCLARYS generated approximately $124 million globally, albeit impacted in the U.S. by Medicare discount dynamics.
The company broadened its rare disease portfolio via the collaboration with Stoke Therapeutics, expecting to initiate pivotal Phase 3 clinical trials soon.
Advancement of felzartamab into Phase 3 trials for antibody-mediated rejection in kidney transplant patients and related nephropathies represents significant pipeline momentum.
Non-GAAP cost of sales increased by 16%, driven by product mix changes, including more contract manufacturing revenue.
Research and development (R&D) expense decreased slightly by 3%, evidencing continued prioritization and cost-saving initiatives under the Fit for Growth program.
Selling, general and administrative (SG&A) expenses remained relatively stable, with investments focused on supporting the launches of LEQEMBI and SKYCLARYS.
Biogen’s Fit for Growth initiative aims for \(1 billion gross savings (\)800 million net) by end-2025, complemented by strategic operating expense management.
Cash and equivalents totaled \(2.6 billion, with net debt approximately \)3.7 billion as of Q1 2025.
Net cash from operating activities was \(259 million, with free cash flow of \)222 million after capital expenditures.
The company updated its full-year 2025 Non-GAAP diluted EPS guidance to \(14.50–\)15.50, incorporating the Stoke upfront payment and favorable foreign exchange impact.
Full-year 2025 revenue is expected to decline mid-single digits at constant currency compared to 2024, reflecting MS product declines offset by new product growth.
Prior earnings calls have emphasized Biogen’s strategic pivot from reliance on MS franchises toward diversified revenue streams including Alzheimer’s, rare diseases, and postpartum depression treatments. The Q1 2025 results validate this transformation with approximately 45% of product revenue derived from beyond MS.
Biogen’s focus on operational efficiency via its Fit for Growth program has delivered a 13% reduction in core operating expenses year-over-year and improved non-GAAP operating margins to above 30%, in line with management’s long-term profitability goals.
Revenue increase of 6% YoY positively impacts the income statement’s top line.
Upfront collaboration payment ($165 million) impacted the income statement through lower EPS.
Operating expense management and improved margins indicate effective cost control contributing to bottom-line resilience.
Solid free cash flow sustains balance sheet strength allowing continued investment in R&D and pipeline growth.
Biogen expects ongoing investment in late-stage pipeline programs with multi-billion-dollar potential, while mitigating risks related to tariff impacts and economic uncertainties, supported by its substantial U.S. manufacturing footprint and resilient global supply chain.
Biogen Q1 2025 Earnings Press Release (https://sec.gov/Archives/edgar/data/875045/000087504525000014/exhibit991-q12025pressrele.htm)
Biogen Q1 2024 Earnings Call Transcript
Biogen Q3 2024 Earnings Call Transcript
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