In a noteworthy positive turn for the biotech sector, Biogen has emerged as one of Friday’s top-performing stocks, experiencing a gain of nearly 9% after revealing strong financial projections for 2025. The company’s fourth-quarter report showed total revenues reaching nearly $2.28 billion, despite a year-over-year decline of 7%. Net income, calculated on a non-GAAP basis, decreased more significantly, dropping to just under $294 million, or $1.99 per share, compared to last year’s profit of over $502 million.
This decline, while concerning, did not deter investors, as Biogen’s results surpassed analyst expectations. Analysts had predicted revenues would be slightly lower at approximately $2.21 billion, and non-GAAP net income at just $1.61 per share. The company’s product revenue, which is crucial for its overall income, decreased by 9% to below $1.67 billion. A significant factor contributing to this downturn was the 14% dip in revenues from multiple sclerosis (MS) treatments, which fell to $917 million, attributed to the increasing market presence of generics and biosimilars.
Biogen’s stock price soared to $201.72, showcasing its resilience in a competitive market. With a market capitalization of $27 billion, the stock demonstrated a daily trading range between $185.05 and $202.34. The company also reported a gross margin of 65.99% and a trading volume of 245,000 shares, compared to an average volume of 2 million.
Looking ahead, Biogen provided guidance for the full year of 2026, indicating a cautious yet optimistic outlook. The company expects revenues to decline in the mid-single digits compared to 2025, while adjusted net income is projected between $15.25 and $16.25 per share. This forecast surpasses the average analyst estimate of $14.92, reflecting confidence in the company’s financial discipline and ongoing business momentum.
The significant bottom-line beats in both trailing and forward metrics demonstrate Biogen’s progress in diversifying its portfolio beyond its historical reliance on MS medications. Sales from its new products, referred to as the “New Biogen” line, saw growth of 6%, supported by a strong development pipeline poised to enhance its future offerings. Investor confidence appears well-placed as the company navigates dynamic market challenges, positioning itself for renewed growth.
