Global Finance News
01 May 2025, 17:17
Biogen Q1 2025 Earnings
Biogen delivered stronger-than-expected revenue in the first quarter of 2025, driven by growing contributions from launch products and rare disease therapies. However, net income and earnings per share declined due to a $165 million upfront payment related to a new collaboration.
Key highlights:
- Total revenue was $2.43 billion, up 6 percent year-over-year (up 8 percent at constant currency).
- GAAP net income was $240.5 million or $1.64 per diluted share (down from $393.4 million or $2.70 EPS in Q1 2024).
- Non-GAAP net income was $443.2 million or $3.02 per diluted share (down from $535.0 million or $3.67 EPS).
- EPS includes a roughly $0.95 negative impact from the $165 million upfront transaction with Stoke Therapeutics for zorevunersen.
- Free cash flow was $222 million.
Segment details:
- MS revenue declined 11 percent (10 percent at constant currency) to $953 million.
- Rare disease revenue grew 33 percent (36 percent at constant currency) to $563 million, led by SPINRAZA, SKYCLARYS, and QALSODY.
- Biosimilars revenue dropped 8 percent to $181 million.
- Alzheimer’s collaboration revenue rose to $33 million from just $3 million last year, driven by LEQEMBI.
- Contract manufacturing and royalty revenue grew 61 percent to $293 million.
Expenses:
- GAAP R&D expense was $434 million; Non-GAAP R&D expense was $427 million.
- SG&A expense was steady at $573 million GAAP and $572 million Non-GAAP.
- Acquired IPR&D and milestone payments surged to $201 million, including $165 million to Stoke and a $35 million milestone to MorphoSys.
- The effective tax rate rose to 22.7 percent GAAP (vs. 15.4 percent in Q1 2024); Non-GAAP rate was 19.4 percent.
Balance sheet and cash flow:
- Biogen ended the quarter with $2.6 billion in cash and $6.3 billion in total debt, for net debt of $3.7 billion.
- Operating cash flow was $259 million.
2025 outlook:
- Updated Non-GAAP EPS guidance is $14.50 to $15.50 (down from $15.25–$16.25), reflecting the Stoke payment and some FX benefit.
- Biogen expects a mid-single-digit percentage decline in total revenue for the full year.
- Non-GAAP R&D and SG&A expenses combined are expected to total around $3.9 billion.
- The Fit for Growth program is on track to generate $1 billion in gross savings by year-end 2025.
Biogen delivered stronger-than-expected revenue in the first quarter of 2025, driven by growing contributions from launch products and rare disease therapies. However, net income and earnings per share declined due to a $165 million upfront payment related to a new collaboration.
Key highlights:
- Total revenue was $2.43 billion, up 6 percent year-over-year (up 8 percent at constant currency).
- GAAP net income was $240.5 million or $1.64 per diluted share (down from $393.4 million or $2.70 EPS in Q1 2024).
- Non-GAAP net income was $443.2 million or $3.02 per diluted share (down from $535.0 million or $3.67 EPS).
- EPS includes a roughly $0.95 negative impact from the $165 million upfront transaction with Stoke Therapeutics for zorevunersen.
- Free cash flow was $222 million.
Segment details:
- MS revenue declined 11 percent (10 percent at constant currency) to $953 million.
- Rare disease revenue grew 33 percent (36 percent at constant currency) to $563 million, led by SPINRAZA, SKYCLARYS, and QALSODY.
- Biosimilars revenue dropped 8 percent to $181 million.
- Alzheimer’s collaboration revenue rose to $33 million from just $3 million last year, driven by LEQEMBI.
- Contract manufacturing and royalty revenue grew 61 percent to $293 million.
Expenses:
- GAAP R&D expense was $434 million; Non-GAAP R&D expense was $427 million.
- SG&A expense was steady at $573 million GAAP and $572 million Non-GAAP.
- Acquired IPR&D and milestone payments surged to $201 million, including $165 million to Stoke and a $35 million milestone to MorphoSys.
- The effective tax rate rose to 22.7 percent GAAP (vs. 15.4 percent in Q1 2024); Non-GAAP rate was 19.4 percent.
Balance sheet and cash flow:
- Biogen ended the quarter with $2.6 billion in cash and $6.3 billion in total debt, for net debt of $3.7 billion.
- Operating cash flow was $259 million.
2025 outlook:
- Updated Non-GAAP EPS guidance is $14.50 to $15.50 (down from $15.25–$16.25), reflecting the Stoke payment and some FX benefit.
- Biogen expects a mid-single-digit percentage decline in total revenue for the full year.
- Non-GAAP R&D and SG&A expenses combined are expected to total around $3.9 billion.
- The Fit for Growth program is on track to generate $1 billion in gross savings by year-end 2025.
