Biogen (NASDAQ: BIIB) is counting on its growth portfolio of drugs to diversify and generate more revenue as generic drugs have impacted its market share of multiple sclerosis treatments.
The biopharmaceutical giant has shifted its gears to prioritize some of its other drugs to drive growth in the company and lean less on its multiple sclerosis franchise.
Growth portfolio drives revenue increases
Biogen reported revenue during the second quarter for its growth portfolio rose by 24% to nearly $1.06 billion, which outperformed its multiple sclerosis portfolio. Total revenue of the company reached $2.7 billion, a 3% increase compared to the previous year.
The growth portfolio includes seven drugs, including ones that treat rarer diseases. Spinraza, a spinal muscular atrophy drug, generated the most revenue at $402 million, up 2% compared to the prior year due to demand and stocking for the highdose regimen.
Other drugs reported double-digit revenue growth, including Leqembi, an Alzheimer’s drug that was co-developed with Eisai, which produced global sales of $184 million, up 15% compared to last year.
Syfovre, a drug which treats macular degeneration, generated revenue of $162 million, up 8% compared to the prior year and was its strongest quarterly demand since its launch. Rare blood and kidney conditions drug Empaveli generated revenue of $46 million for the full second quarter, up 123% compared to the previous year, driven by demand growth.
Several drugs were launched in Europe and other markets which increased sales. Skyclarys, which treats Friedrich’s ataxia, reported revenue of $168 million, up 29% compared to the prior year, due to an increase in global demand, but mostly driven by the continued launch in Europe and several international markets. Postpartum depression drug Zurzuvae produced revenue of $71 million, up 53% from the prior year, which was driven by demand growth and the drug being launched in Germany.
Biogen remains the market leader in providing treatments for multiple sclerosis with its portfolio of drugs that includes Tysabri, Tecfidera, Avonex, Plegridy and Vumerity, but generic drugs have made a dent in the company’s market share.
The MS drugs generated $963 million in revenue, a decline from the $1.1 billion produced in the same period last year. Tysabri generated $450.8 million in revenue, a slight decline from $454.6 million a year ago.
Shares of Biogen rose by 50% for the past year for the $39 billion market cap company. Management estimates that revenue will rise by a mid single-digit percentage for 2026 and had forecast in April that revenue would fall by the same amount.
Newer drugs in Biogen’s pipeline will need to generate more growth to make up for the loss of revenue from its multiple sclerosis lineup.
“We see Biogen as a firm in transition, as MS revenue fades and new drugs for Alzheimer’s, depression, and rare diseases begin to ramp up,” wrote Jay Lee, a senior equity analyst for Morningstar. “We also think the market underestimates Biogen’s pipeline, which includes a continuing partnership with Ionis (including tau-targeting Alzheimer’s drug BIIB080) and drug candidates to treat Parkinson’s disease and lupus.”
Management said it plans to add six new early-stage clinical programs for immunology, neurology and rare disease in 2026. Biogen’s management said it will advance diranersen into late-stage trials to treat Alzheimer’s.
A series of prior deals, including the drug Skyclarys from its 2023 acquisition of Reata Pharmaceuticals, and the rights to Qalsody to treat ALS through a licensing deal with the drug’s original developer, Ionis Pharmaceuticals, have diversified the company’s group of drugs.
Diversifying its pipeline of drugs into treating neurodegenerative and rare disease has benefited Biogen and will likely contribute to additional growth in the near term.
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