As revenue continues to fall within Biogen's market-leading multiple sclerosis franchise, the company is leaning on a handful of other drugs to drive growth. The strategy appears to be working.
Biogen broadly topped analysts' second-quarter forecasts. Ahead of the market open Wednesday, the biopharmaceutical giant posted adjusted earnings of $3.60 a share, easily outstripping Wall Street's call for $3.04. Revenue rose 3% to $2.7 billion, beating the $2.46 billion consensus estimate among analysts polled by FactSet.
Biogen's growth portfolio -- which includes Leqembi, an Alzheimer's drug co-developed with Eisai -- generated nearly $1.1 billion in revenue. Up 24% from the prior year, the segment outpaced Biogen's legacy MS portfolio for the second time in the company's history.
On the back of its latest results as well as stronger "underlying business performance," Biogen hiked its full-year guidance. Management guided for adjusted earnings in the range of $15.85 to $16.85 a share, up from $15.25 to $16.25 previously.
Perhaps more significantly, the company now expects revenue to increase by a mid-single-digit percentage for the year. Biogen had forecast as recently as April that revenue would fall by just as much.
The company leads the market in treatments for MS, a disease where the body's immune system attacks the protective coating around nerve cells. While established blockbusters Tecfidera, Tysabri, and Vumerity historically anchored Biogen's revenue, growing generic competition has gradually eroded their market share.
Biogen's MS portfolio brought in $963 million for the quarter, down from $1.1 billion in the same period last year. While it remains a key revenue driver for now, ongoing declines put pressure on newer products to pick up the slack.
The company's rare disease portfolio was a bright spot in the quarter. Revenue jumped to $602 million from $543 million last year, handily beating the $590 million analysts had expected. The category includes Skyclarys and Qalsody, medications for Friedrich's ataxia and amyotrophic lateral sclerosis (ALS), respectively.
Like many large biopharmaceutical companies, Biogen has relied on acquisitions and collaborations to bolster its pipeline. The company acquired Skyclarys through its 2023 acquisition of Reata Pharmaceuticals. Years earlier, it attained the rights to Qalsody through a licensing deal with the drug's original developer, Ionis Pharmaceuticals.
Leqembi, co-developed with Japan's Eisai, is expected to generate more substantial revenue in the coming quarters. For now, has been a slow-but-steady grower. While Biogen brought in $63.7 million from the collaboration, up from $54.9 million a year ago, the figure fell short of the $70 million analysts had expected.
Despite a growing focus on newer drugs and its pipeline, Biogen's MS portfolio still matters, with Tysabri showing remarkable resilience amid the expiration of key patents.
As seen in the latest quarter, Tysabri continues to drive the bulk of Biogen's MS revenue. The drug has remained sticky with patients in spite of new competing treatments. Tysabri generated $450.8 million globally in the second quarter, down slightly from $454.6 million a year ago, but comfortably beating analysts' calls for $373.9 million.
Biogen stock has outperformed the broader market this year, rising nearly 17% through Tuesday's close. The S&P 500 is up 8.5% over the same period. Sector peers have posted similar gains: Amgen and Novartis are up 20% and 16%, respectively, in 2026.
However, skepticism over an Alzheimer's drug candidate has driven shares 4.8% lower in July, even as the benchmark index edged slightly higher. Earnings provide the company with an opportunity to restore confidence after a presentation on the drug, diranersen, failed to reassure investors about its prospects.
Biogen reiterated Wednesday that it plans to advance diranersen into late-stage trials. The drug would be the first on the market to silence the gene responsible for producing all forms of tau, a protein linked to brain cell death and cognitive decline.