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    Should Biogen’s Profit Squeeze Amid Rising New-Therapy Sales Prompt Action From Biogen (BIIB) Investors?

    Simply Wall St·08/09/2026 03:47:49
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    • In the second quarter of 2026, Biogen Inc. reported revenue of US$2,736.0 million, up from US$2,645.5 million a year earlier, while net income fell to US$97.5 million and diluted earnings per share from continuing operations declined to US$0.66 from US$4.33.
    • Despite higher sales and revenue, Biogen’s earnings compressed significantly, even as its newer therapies outpaced its legacy multiple sclerosis portfolio and the Apellis acquisition expanded its growth product lineup.
    • We’ll now examine how Biogen’s growing revenue mix from newer therapies and the Apellis acquisition reshapes its longer-term investment narrative.

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    Biogen Investment Narrative Recap

    To own Biogen today, you need to believe the company can shift from a shrinking legacy MS base to a broader neurology and rare disease portfolio that supports more durable earnings. The latest quarter’s sharp drop in net income, despite higher revenue, keeps execution on key launches like LEQEMBI and the Apellis assets as the main near term catalyst, while highlighting margin pressure and reimbursement risk as the biggest immediate concern.

    The most relevant recent development here is the completion of the Apellis acquisition, which brings SYFOVRE and Empaveli into Biogen’s growth portfolio. This deal tightly links the Q2 earnings story to the broader question of whether newer therapies can offset MS erosion without further stressing profitability, especially as upcoming Phase 3 readouts in lupus, AMR, and Dravet syndrome could add either support or more cost pressure to that thesis.

    Yet beneath the appeal of a broader growth portfolio, investors should be aware that mounting payer scrutiny and reimbursement pressures could...

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

    Biogen’s narrative projects $10.6 billion revenue and $2.3 billion earnings by 2029.

    Uncover how Biogen's forecasts yield a $227.59 fair value, a 9% upside to its current price.

    Exploring Other Perspectives

    BIIB 1-Year Stock Price Chart
    BIIB 1-Year Stock Price Chart

    Some of the most optimistic analysts were assuming Biogen could reach about US$11.8 billion in revenue and US$3.2 billion in earnings by 2029, which is far more upbeat than the current margin squeeze and reimbursement concerns suggest. You can see how the latest results may either challenge those assumptions or eventually support them, depending on how you weigh the risks and which version of the story you find more convincing.

    Explore 5 other fair value estimates on Biogen - why the stock might be worth over 2x more than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    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.