Why Biogen Stock Was a Winner on Wednesday
Key Points
The company continues to pivot away from its traditional strength in multiple sclerosis treatments.
Its recent acquisition of Apellis Pharmaceuticals should wrap up soon, and it'll have quite an impact.
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Prominent biotech Biogen (NASDAQ: BIIB) loomed large on the stock market on Wednesday. It published its latest set of quarterly earnings, and investors greeted the estimates-beating numbers by piling into the stock, despite a notable guidance cut. By the end of the trading day, Biogen's shares had gained 6%.
Growth in the bottle
Biogen's total revenue for the first quarter of 2026 was $2.48 billion, up 2% year over year. This was sufficient to top the consensus prognosticator forecast of $2.25 billion.
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Profitability saw a more dramatic improvement. The veteran biotech's attributable net income not under generally accepted accounting principles (GAAP) rose by 19% to slightly over $529 million, or $3.57 per share. Collectively, analysts were modeling only $2.95 per share.
As befits their name, Biogen's "growth products" portfolio was the motor of the year-over-year revenue improvement. Sales of Leqembi, which targets early Alzheimer's disease, zoomed 74% higher to $168 million. Other double-digit growers included Skyclarys, currently the only Food and Drug Administration (FDA)-approved medication for the neurodegenerative disorder Friedreich's ataxia.
The $1 difference
On a less positive note, Biogen lowered its full-year profitability guidance. It's now expecting adjusted net income to land at $14.25 to $15.25 per share, a full $1 on either end of the range from the previous forecast of $15.25 to $16.25. This is due to the anticipated impact of acquired in-process research and development charges.
As for revenue, Biogen continues to expect it to decline at a mid-single-digit percentage rate compared to 2025.
However, these projections do not include Apellis Pharmaceuticals, the peer Biogen is currently in the process of acquiring in a deal valued at $5.6 billion. The acquisition is expected to close in the near future.
Biogen continues its long-term transformation from a specialist in multiple sclerosis treatments to other, more high-potential therapies. I think this is a smart strategy that's already producing results and will continue to do so. I'd be a buyer of Biogen stock.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Biogen. The Motley Fool has a disclosure policy.
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