Biogen's Leqembi Gains Traction as Company Eyes Early-Stage Pipeline Expansion

Biogen's second-quarter earnings report reveals promising growth for its Alzheimer's drug Leqembi, while the company sets its sights on bolstering its early-stage pipeline. The pharmaceutical giant's strategic moves and financial performance underscore its commitment to maintaining a competitive edge in the neuroscience market.

Leqembi Sales Surge Amid Market Challenges

Biogen and partner Eisai's Alzheimer's disease drug Leqembi has shown significant progress, with global sales increasing by 58% to $160 million in the second quarter. U.S. sales alone rose by 20% to $63 million, although this figure includes a one-time $35 million stock-up shipment to China. Despite competition from Eli Lilly's Kisunla, Leqembi maintains a 70% market share, according to Alisha Alaimo, Biogen's president and head of North America operations.

The drug's uptake has been accelerated by improvements in diagnostic testing, with faster and more convenient biomarker tests becoming available. CEO Chris Viehbacher noted that these advancements are helping to "remove some of the bottlenecks in the system," facilitating patient diagnosis and treatment initiation.

Biogen's Financial Performance and Strategic Outlook

Biogen reported a 7% increase in overall revenue to $2.6 billion for the second quarter, surpassing analyst expectations. The company has raised its full-year revenue guidance to between $15.50 billion and $16 billion, up from the previous range of $14.50 billion to $15.50 billion. This adjustment represents flat growth compared to 2024, which Jefferies analysts described as a "conservative" outlook.

While Leqembi's performance was encouraging, Biogen's multiple sclerosis (MS) franchise also contributed significantly to the earnings beat. The MS portfolio outperformed consensus estimates by 17%, generating sales of $1.11 billion. Notably, Tysabri brought in $454 million globally, exceeding Jefferies' expectations by $77 million.

Focus on Early-Stage Pipeline and Strategic Partnerships

Viehbacher emphasized Biogen's commitment to expanding its early-stage pipeline, stating that "definitely early stage is on the cards." The company is looking to replicate the success of its recent collaborations, such as the $46 million upfront deal with City Therapeutics for RNAi therapies targeting central nervous system diseases.

The CEO also highlighted the integration of HI-BIO, acquired for $1.8 billion, as a model for future early-stage acquisitions. This approach allows Biogen to leverage its global clinical trials network while preserving the innovative capabilities of smaller biotechs.

While open to later-stage asset acquisitions, Viehbacher stressed the importance of strategic fit and appropriate valuation. "As we look at opportunities, I always say, you can never have enough pipeline. [But] it has to fit strategically with what we're already doing. We don't want to stretch our teams more than we need to, and it has to make financial sense," he explained.