Biogen tops earnings estimates on LEQEMBI growth, cost cuts
Biotech company's 2026 profit forecast exceeds analyst expectations amid Alzheimer's drug momentum
Biogen exceeded analyst expectations with its fourth-quarter earnings report, driven by accelerating sales of its Alzheimer's drug LEQEMBI and substantial cost reductions from its restructuring program, while delivering an optimistic profit forecast for 2026.
The biotechnology company reported adjusted earnings per share of $1.99 for the final quarter of 2025, topping the consensus estimate of $1.61, according to analyst data compiled by MarketBeat. Revenue reached $2.28 billion, surpassing expectations of $2.21 billion, though this represented a 7% decline from the prior year.
The stronger-than-expected performance was anchored by LEQEMBI, the Alzheimer's treatment developed with Eisai, which generated $134 million in global in-market sales during the quarter—a 54% increase from the same period last year. The treatment now commands more than 90% of the anti-amyloid therapy market, as the overall category more than doubled year-over-year in the fourth quarter, according to company data.
"Our 2025 performance was significantly driven by nearly $1 billion in revenue from our new products," said Christopher Viehbacher, Biogen's chief executive officer, highlighting LEQEMBI alongside SKYCLARYS, ZURZUVAE, and QALSODY.
Looking ahead, Biogen projected 2026 adjusted earnings per share between $15.25 and $16.25, comfortably above the analyst consensus of $14.92. The guidance reflects the full impact of the company's "Fit for Growth" cost-cutting initiative, which achieved $1 billion in gross operating expense savings by the end of 2025 following a 15% reduction in headcount, according to regulatory filings. After reinvestments, net savings are projected at $700 million to $800 million.
The restructuring program, launched to reverse declining revenue from multiple sclerosis products, has reshaped Biogen's cost structure while preserving investment in growth areas. The company anticipates total revenue will decline by a mid-single-digit percentage in 2026, reflecting further erosion in its MS franchise partially offset by growth product expansion.
A key catalyst for 2026 is the U.S. Food and Drug Administration's Priority Review of the LEQEMBI IQLIK subcutaneous autoinjector for at-home administration, with a decision expected by May 24. Analysts view the more convenient delivery method as crucial for expanding the addressable patient population beyond the current intravenous infusion requirement.
Biogen's pipeline also includes litifilimab, which has received Breakthrough Therapy Designation for systemic lupus erythematosus, adding another potential growth driver in coming years.
Despite the earnings beat, analyst sentiment remains measured. Of 27 brokerages covering the stock, 18 rate it a hold, 14 recommend buy, and one suggests sell, with an average 12-month price target of $192.72, according to MarketBeat data. Shares of Biogen are trading around $185.36, giving the company a market capitalization of approximately $25.9 billion.
The company trades at a forward price-to-earnings ratio of 11.45 times its 2026 guidance midpoint, below the biotechnology sector average, reflecting investor caution about the durability of LEQEMBI's growth and the ongoing challenges in replacing revenue from its mature multiple sclerosis franchise.
Investors will be watching adoption rates of the subcutaneous LEQEMBI formulation should it receive approval, as well as progress in the broader anti-amyloid market, which faces competition from Eli Lilly's Kisunla and Roche's gantenerumab, which is still in development. The Alzheimer's treatment market is projected to reach tens of billions annually as diagnostic capacity improves and treatment becomes more accessible.