How a Strong Q3 and Increased R&D Spending at Biogen (BIIB) Has Changed Its Investment Story

• Biogen Inc. recently reported third-quarter 2025 earnings, delivering revenue of US$2.53 billion and net income of US$466.5 million, both ahead of consensus estimates, led by solid performance in its multiple sclerosis and newly launched therapies.
• Despite surpassing expectations, management adjusted its full-year earnings guidance downward due to increased research and development spending, signaling a continued commitment to pipeline expansion and future growth opportunities.
• Next, we'll examine how Biogen's quarterly earnings beat and pipeline investments inform the company's long-term investment narrative.

AI is about to change healthcare. These 33 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Biogen Investment Narrative Recap

To own Biogen stock, an investor needs to believe in the company’s ability to offset challenges in legacy products by ramping up new therapy launches and pipeline advancements. The recent earnings beat shows Biogen is delivering on execution, but with management lowering full-year guidance due to higher R&D spending, the near-term investment case continues to hinge on successful commercialization of growth drivers like LEQEMBI and SKYCLARYS, while the risk of further Tecfidera erosion in Europe remains relevant, but the immediate impact from this quarter is not material. Among recent announcements, the presentation of positive Phase 3 data for dapirolizumab pegol in systemic lupus erythematosus stands out. This update highlights management’s pipeline focus and underscores the potential for new approvals to cushion against revenue pressure in more mature areas, aligning directly with the company’s need to diversify and strengthen its late-stage portfolio to secure long-term growth. On the other hand, with competition for key MS assets intensifying and Tecfidera’s generic exposure persisting, investors should keep a close eye on how international pricing and market access evolve ...

Read the full narrative on Biogen (it's free!)

Biogen's outlook projects $9.4 billion in revenue and $2.1 billion in earnings by 2028. This requires a -2.1% annual revenue decline and a $0.6 billion increase in earnings from $1.5 billion currently.

Uncover how Biogen's forecasts yield a $172.55 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Fair value estimates for Biogen from seven members of the Simply Wall St Community range from US$100 to over US$330 per share. While investor outlooks can be wide apart, commercial headwinds outside the US remain a top concern shaping earnings and sentiment.

Explore 7 other fair value estimates on Biogen - why the stock might be worth over 2x more than the current price!

Build Your Own Biogen Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Biogen research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Biogen research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Biogen's overall financial health at a glance.

Ready For A Different Approach?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• Explore 28 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 26 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com