"Weight loss technique" cuts costs and bets on new drug product lines such as Alzheimer's disease drugs, Biogen (BIIB.US) profit outlook stronger than expected.

Biogen Inc. (BIIB.US) announced its fourth-quarter performance in 2025 and future performance outlook before the U.S. stock market on February 6th. The latest data shows that the profit outlook for 2026 given by the management is higher than the average expectations of Wall Street analysts, indicating that cost-cutting measures are mitigating the impact of declining sales in its multiple sclerosis (MS) business. The Massachusetts-based biotechnology company announced on Friday that it expects adjusted earnings per share for this year to be between $15.25 and $16.25, higher than the average analyst expectations. However, the company's management expects overall revenue to decline by a mid-single-digit percentage in 2026, continuing the operational pressure of relying heavily on the MS treatment business. Biogen's fourth-quarter total revenue is approximately $2.3 billion, a slight 7% decrease year-over-year, with adjusted earnings per share of $1.99, both significantly higher than the average expectations of Wall Street analysts. Sales data for the drugs Skyclarys for rare disease treatment and Spinraza for spinal muscular atrophy were both below analyst expectations, with Spinraza affected by shipment timing outside of the United States. Biogen's stock price remained relatively stable in pre-market trading. Over the past 12 months, its stock price has risen by a significant 30%. Overall, Biogen's total revenue continues to be impacted by its mature MS product line, but its profit performance is more resilient under the support of "cost discipline + product structure". The company's Q4 2025 total revenue of $2.279 billion (meaning a -7% year-over-year) exceeded Wall Street expectations, with non-GAAP adjusted earnings per share of $1.99 also surpassing expectations; in terms of annual performance, total revenue in 2025 was $9.891 billion (meaning a +2% year-over-year), and non-GAAP adjusted earnings per share reached $15.28 (meaning a -7% year-over-year), both performances exceeding Wall Street expectations. Biogen's performance growth and valuation elasticity mainly depend on the climbing efficiency of its "new drug matrix", especially Leqembi. The company disclosed that the total revenue from LEQEMBI, SKYCLARYS, ZURZUVAE, and QALSODY in 2025 reached nearly $1 billion, but Leqembi is still in a "slow warming" phase: in 2025 Q4, Leqembi sales were approximately $134 million (an increase from the previous quarter's $121 million), limited by bottleneck constraints such as neurology resources and infusion capacity. The company continues to focus on accelerating growth in a certain stage in 2026. Key catalysts include Leqembi's IQLIK subcutaneous initiation drug receiving FDA priority review, with a PDUFA date of May 24, 2026 - if significantly reducing drug friction and expanding diagnostic/inclusion efficiency (such as making blood tests more popular), Leqembi's growth curve is more likely to shift from "linear" to "acceleration". In terms of pipeline and mid-term layout, Biogen is reshaping its risk structure by "reducing dependence on neurology": on one hand, it acquired Skyclarys from Reata in 2023 for rare disease enhancement; on the other hand, it is shifting the focus of its business development and research to immunology. Recent key milestones include: Spinraza's high-dose regimen has been approved in Japan and the EU, with a US FDA decision (PDUFA) expected on April 3, 2026; litifilimab has been designated as a breakthrough therapy for cutaneous lupus erythematosus by the FDA, with readouts expected in Q4 2026 for two Phase III studies on systemic lupus erythematosus. Overall, 2026 appears more like a "MS downturn + new drug climb + cost reset" transition year: profit certainty is higher than income certainty, and the key to stock price reevaluation lies in whether Leqembi and the immunology pipeline can upgrade the "cost control story" to a "growth story". Focusing on cost cutting while investing in new products During the earnings conference, Chief Executive Officer Chris Viehbacher stated in an interview with analysts that Biogen has maintained "extremely strict discipline" in costs while pushing for growth in new product data. Since taking on the role of CEO over three years ago, he has cut hundreds of positions and continuously announced significant cost reductions, including the complete removal of some drugs from the research pipeline. Under Viehbacher's leadership, Biogen has been consistently betting on new drugs for growth in recent years - including the Alzheimer's disease treatment Leqembi and the rare disease treatments Skyclarys and Spinraza - in an effort to offset the continued decline in its MS treatment drugs, as generic competition pressures continue to erode Biogen's related sales data. The company expects this hedge to not materialize this year. After overall sales growth of 2% last year, Biogen expects sales to decline slightly in 2026, primarily due to the loss of market exclusivity for MS treatment drugs in Europe and new competition in the United States. Leqembi received FDA regulatory approval in early 2023, but sales progress has been slow, limited by healthcare system bottlenecks including a shortage of neurologists and inadequate infusion capacity in the medical system. Leqembi's overall sales in the fourth quarter were approximately $134 million, roughly meeting analyst expectations and higher than the approximately $121 million from the previous quarter. Viehbacher said, regarding sales of Leqembi, "We hope to see its growth accelerate at some point in 2026." Biogen, along with its Japanese partner Eisai Co., is seeking U.S. government approval in May to allow patients to start using Leqembi at home through subcutaneous injections; this change could make the drug easier to use and differentiate it from a competitive Alzheimer's disease treatment under Eli Lilly & Co. Viehbacher also mentioned that more widespread use of blood testing for diagnosing Alzheimer's disease could help expand the elderly patient population that meets treatment criteria. Viehbacher has been trying to reshape the company to no longer rely excessively on the high-risk field of neuroscience. Under his leadership, Biogen's largest deal was the acquisition of Reata Pharmaceuticals Inc. for $7.3 billion in 2023, gaining Skyclarys - the first approved treatment for a rare neurological disease called Friedreich's ataxia. Recently, Biogen has been focused on early research cooperation deals or agreements in the field of immunology, known for heavy drugs like Humira under AbbVie, Inc. Higher-dose versions of Spinraza have recently been approved by regulators in Japan and Europe, with Biogen claiming superior efficacy. A formal decision from U.S. regulators is expected in April. The company is also awaiting data from several key trials this year, including a study of an experimental Alzheimer's disease drug that works through a mechanism different from Leqembi, and litifilimab for the treatment of a type of lupus that often affects Black women; the disease causes the immune system to mistakenly attack healthy tissue, leading to symptoms such as rashes and arthritis.