Key Takeaways:
Biogen Inc. (NASDAQ:BIIB) lowered its full-year 2026 adjusted earnings forecast by $1 per share at the midpoint, signaling potential headwinds for its core business ahead of its quarterly report.
"The near-term debate is centered on the durability of the base business as new growth drivers remain early stage," BofA Securities, which holds a Neutral rating on the stock, said in a note on April 25.
The biopharmaceutical company now expects adjusted earnings per share of $14.25 to $15.25, down from a prior range of $15.25 to $16.25. The revision accompanied first-quarter results, where analysts projected revenue to fall 7.3% year-over-year to $2.25 billion, according to Zacks Consensus Estimate.
Shares fell 3.1% to $177.70 in pre-market trading in New York. The lowered outlook increases pressure on new products and its pipeline to offset the erosion of legacy franchises in multiple sclerosis and spinal muscular atrophy.
The guidance cut contrasts with a recent string of analyst optimism. On April 22, UBS upgraded Biogen to Buy and raised its price target to $225, citing "increased conviction on the company’s pipeline catalysts." Wells Fargo and H.C. Wainwright also recently lifted their price targets, pointing to strategic acquisitions like Apellis and the potential of pipeline candidates like litifilimab and felzartamab.
Wall Street is closely watching the performance of Biogen's new portfolio against the decline of its established drugs for multiple sclerosis and spinal muscular atrophy. The company has missed Wall Street’s revenue estimates multiple times over the last two years, increasing the focus on its ability to generate new growth.
The lowered earnings forecast suggests that challenges in the base business may be more significant than previously anticipated, potentially outweighing near-term pipeline optimism. Investors will be looking for detailed commentary on the earnings call regarding the erosion of legacy products and the commercial progress of new therapies.
This article is for informational purposes only and does not constitute investment advice.
