Biogen Lowers Annual Profit Forecast Due to Acquisition Costs

• Biogen expects 2026 adjusted profit of $14.25-$15.25 per share, below analyst expectations of $15.04 per share
• Leqembi Alzheimer's drug sales rose 74% year-over-year to $168 million, significantly exceeding analyst estimates of $131.03 million
• First-quarter adjusted earnings of $3.57 per share and revenue of $2.48 billion both topped expectations of $2.26 billion in revenue

Biogen Lowers Annual Profit Forecast Amid Acquisition Costs

Key Developments:

Biogen cut its full-year 2026 profit forecast on April 29 due to acquisition-related charges, though Q1 earnings exceeded expectations. The company now projects 2026 adjusted earnings of $14.25-$15.25 per share, slightly below analyst estimates of $15.04.

Q1 Performance Highlights:

• Adjusted EPS: $3.57, beating estimates of $3.31
• Revenue: $2.48 billion, surpassing expectations of $2.26 billion
• Leqembi (Alzheimer's drug): Global sales reached $168 million (up 74% YoY), including $86 million in the U.S., significantly exceeding analyst projections of $131.03 million
• Multiple sclerosis drugs: Sales of $957.5 million, beating combined estimates of $891 million
• Rare-disease portfolio: Generated $557.2 million, down slightly over 1% from the prior year

Strategic Moves:

Biogen recently acquired Apellis Pharmaceuticals to strengthen its kidney disease treatment portfolio. The acquisition adds a promising therapy and complements development of the company's late-stage renal candidate. Management will incorporate updated guidance reflecting this deal when announcing Q2 results.

Market Context:

The company is pivoting toward newer drugs and immunology/rare-disease candidates while implementing strict cost controls to offset declining revenue from legacy multiple sclerosis treatments. Leqembi's performance is particularly notable given its slow initial launch amid concerns over cost, efficacy, and side effects.

Implications:

Despite near-term profit pressure from M&A costs, Biogen's diversification strategy and better-than-expected drug sales suggest progress in transitioning away from legacy franchises toward growth drivers in Alzheimer's and rare diseases.