Biogen Reports $2.43 Billion Revenue in Q1 2025, Net Income Declines to $240.5 Million

Biogen Inc. reported a total revenue of $2.43 billion for the first quarter of 2025, marking a 6.1% increase from $2.29 billion in the same period last year. The growth was primarily driven by a rise in contract manufacturing and collaboration revenues, which increased significantly due to the commercialization of LEQEMBI and other products. Product revenue, net of discounts and allowances, rose slightly by 0.9% to $1.73 billion, with notable increases in rare disease treatments, particularly SKYCLARYS, which generated $123.9 million in revenue. However, the company experienced a decline in multiple sclerosis (MS) product revenues, which fell by 11.4% to $953 million, largely due to increased competition and the impact of biosimilars.

Despite the revenue growth, Biogen's net income attributable to the company decreased to $240.5 million, or $1.64 per diluted share, down from $393.4 million, or $2.70 per diluted share, in the prior year. This decline in profitability was attributed to increased costs, including a significant rise in acquired in-process research and development expenses, which surged to $200.7 million from $7.5 million a year earlier. Total costs and expenses rose by 16.1% to $2.12 billion, driven by higher costs of sales and restructuring charges related to the company's ongoing Fit for Growth program.

Strategically, Biogen has made significant moves, including the acquisition of HI-Bio, which is expected to enhance its pipeline in immunology. The company also entered into a collaboration agreement with Stoke Therapeutics for the development of zorevunersen, an investigational therapy for Dravet syndrome, and secured funding from Royalty Pharma to co-fund development costs for the litifilimab program. These initiatives reflect Biogen's commitment to expanding its product offerings and addressing unmet medical needs.

Operationally, Biogen's cash and cash equivalents increased to approximately $2.6 billion as of March 31, 2025, compared to $2.4 billion at the end of 2024. The company generated $259.3 million in net cash flow from operations during the quarter, a decrease from $553.2 million in the prior year, primarily due to the upfront payment made to Stoke and higher employee benefit payments. The company continues to focus on cost-saving measures through its Fit for Growth program, which aims to generate approximately $1 billion in gross operating expense savings by the end of 2025.

Looking ahead, Biogen anticipates continued challenges in its MS product line due to increasing competition and pricing pressures, particularly from generics and biosimilars. The company expects to see modest revenue impacts from the Inflation Reduction Act's drug pricing controls, particularly affecting its SKYCLARYS and MS portfolio. However, Biogen remains optimistic about its growth prospects in rare diseases and the successful commercialization of new products, which will be critical for its long-term success.