Biogen's Transformation: New Launches Drive Growth Amid MS Decline

Biogen, a long-standing player in the pharmaceutical industry, is experiencing a significant transformation as it navigates the challenges of a declining multiple sclerosis (MS) portfolio while simultaneously celebrating the success of its new product launches. The company's first-quarter results for 2025 reveal a promising shift in its revenue composition, marking what CEO Chris Viehbacher calls "a new Biogen emerging."

Revenue Growth Driven by New Launches

Despite an 11% decline in its MS franchise, Biogen reported a 6% overall revenue increase in the first quarter of 2025, reaching $2.4 billion. This growth is largely attributed to three key product launches:

1. Leqembi (Alzheimer's disease): Sales surged 395% year-over-year to $96 million, with an 11% increase from the previous quarter.
2. Zurzuvae (postpartum depression): Revenue grew 123% compared to the first quarter of last year, reaching $28 million.
3. Skyclarys (Friedreich's ataxia): Contributing $124 million in sales, it became the largest revenue generator among the new launches.

These new products now account for 45% of Biogen's revenue, signaling a significant shift away from its traditional MS-focused business model.

Strategic Expansion and Market Challenges

Biogen is actively pursuing geographical expansion for its new products. Leqembi recently gained European approval, opening up a market with a substantial number of eligible patients. The company is also making strides in expanding Skyclarys's reach, with recent approvals in the UK and Brazil.

However, the launch of these new products has not been without challenges. Viehbacher acknowledged that Leqembi has been a "challenging product to launch," but recent advancements in administration, including an anticipated FDA decision for subcutaneous maintenance dosing, are expected to reduce the treatment burden.

In the competitive landscape of Alzheimer's treatments, Biogen faces rivalry from Eli Lilly's Kisunla (donanemab). Viehbacher expressed openness to competition, stating that the market will likely be split between the two products, with the primary focus on expanding the overall market to reach more patients in need.

Resilience in the Face of Industry Challenges

While many pharmaceutical companies are concerned about potential tariffs and changing trade policies, Biogen appears well-positioned to weather these challenges. The company's diversified revenue base, with 55% of product revenue coming from outside the U.S., provides a degree of insulation from potential U.S.-centric policy changes.

Moreover, approximately 75% of Biogen's U.S. product revenue is tied to drugs manufactured domestically, further protecting the company from potential tariff impacts. Biogen does not anticipate its financial outlook, which projects a mid-single-digit percentage revenue decline in 2025 due to falling MS sales, to be significantly affected by currently announced tariffs.