On July 31, 2025 Biogen Inc. (NASDAQ: BIIB) reported second quarter 2025 financial results (Press release, Biogen, JUL 31, 2025, View Source [SID1234654669]). Commenting on the results, President and Chief Executive Officer Christopher A. Viehbacher said:
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"We delivered another quarter of strong execution against our strategy to transform our portfolio and build the new Biogen. Our performance reflects robust financial results, ongoing cost discipline, continued growth of our launch products, and meaningful strides expanding and advancing our late-stage pipeline. We are now progressing salanersen to registrational studies in SMA following exciting interim Phase 1b results, and have initiated all three Phase 3 studies for felzartamab in rare kidney disease. These achievements reinforce our commitment to building a stronger company, with the potential for sustainable growth and long-term value for our shareholders."
Financial Highlights
Q2 ’25 Q2 ’24 △
r (CC*)
Total Revenue (in millions) $2,646 $2,465 7% 8%
GAAP diluted EPS $4.33 $4.00 8% N/A
Non-GAAP diluted EPS $5.47 $5.28 4% N/A
Note: Percent changes represented as favorable/(unfavorable) versus the prior year period.
N/A = not applicable.
* Percentage changes in revenue growth at constant currency (CC) are presented excluding the impact of changes in foreign currency exchange rates and hedging gains or losses. Foreign currency revenue values are converted into U.S. Dollars using the exchange rates from the end of the previous calendar year.
Second quarter 2025 GAAP and Non-GAAP diluted EPS reflects the approximately ($0.26) impact from $47 million of acquired IPR&D, upfront and milestone expense.
A reconciliation of GAAP to Non-GAAP financial measures can be found in Table 4 at the end of this news release.
Revenue Summary
(in millions) Q2 ’25 Q2 ’24 △
r (CC*)
Multiple sclerosis (MS) product revenue(1)
$1,107 $1,150 (4)% (4)%
Rare disease revenue(2)
$543 $534 2% 3%
Biosimilars revenue $182 $198 (8)% (8)%
Other product revenue(3)
$47 $18 169% 170%
Total product revenue $1,879 $1,900 (1)% (1)%
Revenue from anti-CD20 therapeutic programs $467 $445 5% 5%
Alzheimer’s collaboration revenue(4)
$55 $12 NMF NMF
Contract manufacturing, royalty and other revenue $245 $109 124% 119%
Total revenue $2,646 $2,465 7% 8%
Note: Percent changes represented as favorable/(unfavorable) versus the prior year period. Numbers may not foot or recalculate due to rounding.
NMF = no meaningful figure.
(1) Multiple sclerosis includes TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI and FAMPYRA. Effective
January 1, 2025, our collaboration and license agreement for FAMPYRA global commercialization rights was terminated.
(2) Rare disease includes SPINRAZA, SKYCLARYS and QALSODY.
(3) Other includes ADUHELM, FUMADERM and ZURZUVAE.
(4) Includes Biogen’s 50% share of net revenue and cost of sales, including royalties, from the LEQEMBI Collaboration.
Expense Summary
(in millions) Q2 ’25 Q2 ’24 △
GAAP cost of sales*
$605 $546 (11)%
% of Total Revenue 23% 22%
Non-GAAP cost of sales*
$554 $504 (10)%
% of Total Revenue 21% 20%
GAAP R&D expense $399 $505 21%
Non-GAAP R&D expense $394 $455 13%
GAAP SG&A expense $584 $554 (5)%
Non-GAAP SG&A expense $579 $542 (7)%
GAAP acquired IPR&D, upfront and milestone expense $47 $9 NMF
Non-GAAP acquired IPR&D, upfront and milestone expense $47 $9 NMF
Note: Percent changes represented as favorable/(unfavorable) versus the prior year period
IPR&D = in-process R&D; NMF = no meaningful figure.
* Excluding amortization and impairment of acquired intangible assets
2
•The increase in second quarter 2025 GAAP and Non-GAAP cost of sales as a percentage of total revenue was driven primarily by product mix, particularly the year-over-year increase in contract manufacturing revenue driven in-part by accelerated batch production in preparation for expected plant maintenance shutdowns in the fourth quarter of 2025, partially offset by an increase in launch product revenue.
•The decrease in second quarter 2025 GAAP and Non-GAAP R&D expense was driven primarily by savings from the Company’s R&D prioritization, Fit for Growth initiatives and R&D funding received.
•The increase in second quarter 2025 GAAP and Non-GAAP SG&A was driven primarily by sales and marketing spend to support product launches, partially offset by savings from the Company’s Fit for Growth initiative.
•Second quarter 2025 GAAP and Non-GAAP acquired IPR&D, upfront and milestone expense was approximately $47 million and includes a $30 million milestone to MorphoSys AG as part of the initiation of the Phase 3 trial of felzartamab in IgA nephropathy and a $16 million upfront payment as part of a strategic research agreement with City Therapeutics, Inc.
Other Financial Highlights
•Second quarter 2025 GAAP and Non-GAAP collaboration profit sharing was a net expense of approximately $75 million, which includes approximately $57 million related to Biogen’s collaboration with Samsung Bioepis, and approximately $18 million related to Biogen’s collaboration with Sage Therapeutics, Inc. and the commercialization of ZURZUVAE in the U.S.
•Second quarter 2025 GAAP other expense was approximately $49 million, primarily driven by net interest expense and impacts from foreign currency. Second quarter 2025 Non-GAAP other expense was approximately $57 million, primarily driven by net interest expense.
•Second quarter 2025 GAAP and Non-GAAP effective tax rates were 14.7% and 13.5%, respectively. Second quarter 2024 GAAP and Non-GAAP effective tax rates were 16.5% and 15.9%, respectively.
Financial Position
•Second quarter 2025 net cash flow from operations was approximately $161 million and includes the impact of cash tax payments of approximately $745 million. Capital expenditures were approximately $27 million, and free cash flow, defined as net cash flow from operations less capital expenditures, was approximately $134 million.
•As of June 30, 2025, Biogen had cash and cash equivalents totaling approximately $2.8 billion and approximately $6.3 billion in total debt, resulting in net debt of approximately $3.5 billion.
•For the second quarter of 2025 the Company’s weighted average diluted shares were approximately 147 million.