Biogen Raises 2026 EPS Guidance Floor as Growth Portfolio Jumps 49%

Biogen Inc. (Nasdaq: BIIB) raised the lower end of its 2026 non-GAAP diluted earnings guidance after third-quarter revenue increased 11%, as its growth portfolio and the first full-quarter contribution from Apellis offset continued declines in legacy multiple sclerosis products.

The biotechnology company now expects full-year non-GAAP diluted EPS of $12.20 to $13.00, compared with its July range of $12.00 to $13.00. The outlook includes an estimated $3.20-per-share impact from acquired in-process research and development, upfront and milestone charges, as well as approximately $0.55 of dilution from the Apellis acquisition. Biogen previously estimated Apellis dilution of about $0.85 per share.

Biogen maintained its expectation that full-year revenue will rise by a mid-single-digit percentage year over year. It forecast approximately $4.95 billion in 2026 non-GAAP core operating expenses, including Apellis integration costs and synergies, and continues to target at least $250 million in run-rate synergies by the end of 2027.

Growth Portfolio Overtakes Legacy MS Business

Third-quarter revenue rose to $2.80 billion from $2.54 billion a year earlier. Growth-portfolio revenue increased 49% to $1.26 billion and accounted for 63% of core pharmaceutical revenue, exceeding the $727 million generated by Biogen’s legacy MS portfolio. The legacy portfolio, excluding VUMERITY, declined 14% year over year and 5% sequentially.

Core pharmaceutical revenue advanced 18% to $2.0 billion. Revenue from Biogen excluding the acquired Apellis products was $1.02 billion, up 21%, while Apellis products contributed $243 million in the first full quarter following integration. Combined SYFOVRE and EMPAVELI revenue was 37% above the amount reported by Apellis for the prior-year period.

SYFOVRE generated $191 million, increasing 27% year over year and 18% from the second quarter. Biogen said commercial injections rose 18% from a year earlier and 7% sequentially, though third-quarter revenue also benefited from inventory dynamics. The company described SYFOVRE as the market leader in geographic atrophy.

EMPAVELI revenue climbed 92% to $52 million and increased 11% sequentially. Biogen cited strong demand growth in nephrology indications and said it was increasing investment amid competition in the paroxysmal nocturnal hemoglobinuria market.

Other revenue, which includes biosimilars, anti-CD20 therapeutic programs, contract manufacturing, royalties and other sources, declined 3% to $813 million.

Higher Spending Weighs on Earnings

Biogen reported a GAAP net loss attributable to the company of $21 million, or $0.14 per diluted share, compared with net income of $466 million, or $3.17 per share, a year earlier. Non-GAAP net income fell 45% to $391 million, while non-GAAP diluted EPS declined to $2.62 from $4.81.

Acquired in-process R&D, upfront and milestone expense rose to $284 million from $2 million, carrying an approximate non-GAAP EPS impact of $1.70. Core operating expenses, comprising R&D and selling, general and administrative costs, increased 29% on a GAAP basis to $1.33 billion and 27% on a non-GAAP basis to $1.30 billion. Other expense increased to $137 million under GAAP and $91 million on a non-GAAP basis.

Biogen generated $641 million in operating cash flow and spent $40 million on capital expenditures, resulting in non-GAAP free cash flow of $600 million. At Sept. 30, it held $1.3 billion in cash and equivalents and $7.7 billion in debt, for net debt of $6.4 billion. The company repaid $400 million of the term loan associated with the Apellis acquisition during the quarter, bringing total repayments to $600 million, and expects to repay the remaining $1.4 billion by the end of 2027.

Pipeline Readouts Remain a Strategic Focus

Management expects five registrational study readouts over the next four quarters across programs addressing markets with an estimated combined value of about $12 billion. These include two Phase 3 readouts for litifilimab in systemic lupus erythematosus, a Phase 3 litifilimab readout in cutaneous lupus erythematosus, a Phase 3 felzartamab readout in antibody-mediated rejection and a Phase 3 zorevunersen readout in Dravet syndrome. The company said upcoming data readouts remain on track, while noting that development timelines are subject to change.

Biogen is also rebuilding its earlier-stage pipeline through internal and external investment. The presentation indicated that six new programs, including three new molecular entities, are expected, and that the RayThera acquisition has been completed with its lead program in Phase 1.

The outlook remains subject to risks surrounding the integration and expected synergies of Apellis, clinical-trial outcomes, regulatory decisions, pricing and reimbursement, product competition, intellectual-property disputes, manufacturing and supply, tariffs and trade restrictions, cybersecurity, debt and access to capital. Biogen also cautioned that early clinical results may not be replicated in later-stage studies and that actual acquisition costs, dilution and revenue performance could differ from current estimates.