Biogen (NASDAQ:BIIB) Maintains "Buy" Rating Amid Mixed Q1 2025 Results

• Biogen's adjusted EPS of $3.02 missed the Zacks Consensus Estimate by 18%, impacted by a significant upfront payment for a new collaboration.
• Despite the earnings miss, Biogen's total revenues saw a 6% year-over-year increase, reaching $2.43 billion, driven by higher sales from new drugs.
• The company has lowered its EPS guidance for the current year, reflecting potential future challenges.

Biogen (NASDAQ:BIIB) is a biotechnology company known for its focus on neurological diseases. It develops therapies for conditions like multiple sclerosis and spinal muscular atrophy. Biogen faces competition from other biotech firms such as Roche and Novartis. On May 5, 2025, H.C. Wainwright maintained its "Buy" rating for Biogen, with the stock trading at $123.53.

Biogen's first-quarter 2025 results were mixed. The company reported adjusted earnings per share (EPS) of $3.02, which fell short of the Zacks Consensus Estimate of $3.32. This represents an 18% decline in earnings year over year. The shortfall is mainly due to a $165 million upfront payment to Stoke Therapeutics for a collaboration on zorevunersen, a treatment for Dravet syndrome.

Despite the earnings miss, Biogen's total revenues for the quarter reached $2.43 billion. This marks a 6% increase year over year on a reported basis and an 8% increase on a constant-currency basis. The revenue growth was driven by higher sales from new drugs, which helped offset declines in sales of key multiple sclerosis drugs like Tecfidera and Tysabri.

Sales of Spinraza, a spinal muscular atrophy drug, showed slight improvement, contributing to the revenue growth. However, Biogen has lowered its EPS guidance for the current year, indicating potential challenges ahead. The current stock price of BIIB is $122.45, reflecting a decrease of 0.87% with a change of $1.08.

The stock has fluctuated between a low of $122.18 and a high of $123.43 during the day. Over the past year, BIIB has reached a high of $238 and a low of $110.04. The company's market capitalization stands at approximately $17.94 billion, with a trading volume of 176,744 shares on the NASDAQ today.