A biopharmaceutical company focused on the brain and nervous system, Biogen makes treatments for multiple sclerosis, spinal muscular atrophy, ALS, and Alzheimer's — with brands like TYSABRI, SPINRAZA, and the Alzheimer's drug LEQEMBI it co-markets with Eisai. It was founded in 1978 in Geneva by academic scientists (including two future Nobel laureates) and later moved to Cambridge, Massachusetts, where it remains. Its name is a mash-up of "Biotechnology Geneva," and its roots stretch back to the dawn of the biotech industry.
Q2 2026 revenue rose 3.4% to $2.7B but net income fell on $164.0M acquired IPR&D and Apellis costs
The Apellis acquisition reshaped the quarter's base. Revenue rose 3.4% to $2.7B and fell from $4.33 a year ago as $164.0M in and $112.8M in weighed on results, while the new Specialized Immunology added $127.8M. Biogen now carries $1.3B in cash after the $5.1B Apellis outlay, leaving the balance sheet to be rebuilt.
Key takeaways
The Apellis acquisition closed during the quarter, contributing $127.8M from SYFOVRE and EMPAVELI in a new Specialized Immunology and cutting cash and marketable securities to $1.3B from $4.2B at year-end 2025 after $5.1B net cash paid, partially offset by $1.8B in net borrowings.
rose 3.4% to $2.7B, with product revenue up 2.0% to $1.9B as rare disease revenue grew 10.8% to $601.7M and the Apellis products offset a 13.0% decline in MS revenue to $963.3M, driven by a 53.0% drop in to $90.9M from European generics.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 3.4% to $2.7B driven by rare disease and Apellis products, while net income fell sharply on acquisition costs and restructuring.
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Total increased 3.4% to $2.7B, with product revenue up 2.0% to $1.9B, as rare disease revenue grew 10.8% to $601.7M and the new Specialized Immunology contributed $127.8M from SYFOVRE and EMPAVELI following the Apellis acquisition.
, upfront and milestone expense rose to $164.0M from $46.6M a year earlier, mainly a $100.0M TJ Bio payment for rights in greater China, and cost of sales rose 28.4% to $776.9M on $112.8M higher acquired for , SYFOVRE, and EMPAVELI.
R&D expense increased 32.7% to $529.6M on $37.5M step-up and higher , salanersen, and trial spend; improved to $1.1B from $420.2M a year earlier on lower tax payments.
was 73.3%, down 3.8 points from 77.1% a year earlier, as the lifted cost of sales.
What changed
was flagged to watch against the $132.9M Q3 2025 base; Q2 2026 rare disease was $601.7M up 10.8% with SKYCLARYS growth embedded but no standalone Q2 dollar figure reported.
MS product was flagged against $1.06B Q4 2025 and $4.04B FY2025; Q2 2026 MS revenue fell 13.0% to $963.3M as dropped 53.0% to $90.9M, extending the generic erosion trend.
was flagged after the $471.8M FY2025 charge; Q2 2026 was $164.0M versus $46.6M a year earlier, with the TJ Bio $100.0M payment driving the increase.
was flagged for recovery from the $2,204.6M FY2025 level; Q2 2026 operating cash flow was $1.1B versus $420.2M a year earlier as elevated tax payments rolled out of the base.
The $5.6B Apellis acquisition flagged in Q1 2026 closed in Q2; cash fell to $1.3B from $4.7B at Q1 end and rose to $6,288.5M with $2.0B new bank loans anticipated.
What to watch
standalone quarterly as European launches scale and the IRA impact persists, against the embedded $601.7M rare disease total.
MS product in Q3 2026 as further generics enter U.S. and EU markets after the 53.0% Q2 drop to $90.9M.
Cash and marketable securities recovery from $1.3B as $5.1B Apellis outflow and $1.8B borrowings work through the balance sheet.
and milestone expense trajectory after the $164.0M Q2 charge including the TJ Bio payment.
Multiple sclerosis product declined 13.0% to $963.3M, driven by a 53.0% drop in to $90.9M due to generic competition in Europe and lower Interferon demand as patients shift to oral therapies.
Cost of sales rose 28.4% to $776.9M, primarily from $112.8M higher of acquired fair value step-up adjustments for , SYFOVRE, and EMPAVELI.
R&D expense increased 32.7% to $529.6M, including $37.5M in step-up and higher clinical trial spending on felzartamab, salanersen, and litifilimab.
Acquired IPR&D, upfront and milestone expense surged to $164.0M from $46.6M, mainly due to a $100.0M upfront payment to TJ Bio for felzartamab rights in greater China.
Cash and marketable securities fell to $1.3B from $4.2B at year-end 2025, largely due to $5.1B net cash paid for Apellis, partially offset by $1.8B in net borrowings; improved to $1.1B from $420.2M on lower tax payments.
Quantitative and Qualitative Disclosures About Market Risk
The company faces foreign currency, interest rate, and equity price risks, managing them with derivatives and noting a $243M sensitivity to a 10% adverse FX move.
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Primary FX exposures are to the Euro, British pound, Canadian dollar, Swiss franc, and Polish zloty, with and expenses hedged via forwards and options up to 18 months out.
A hypothetical 10% adverse move in FX rates versus the USD would decrease the fair value of forward contracts by approximately $243 million as of June 30, 2026.
Balance sheet FX risk from net monetary assets/liabilities of foreign affiliates is managed with forward contracts, without applying .
Interest rate and equity price risks are mentioned but not quantified; the company uses interest rate locks and swaps to manage interest rate exposure.
Credit risk is mitigated by dealing with highly rated financial institution counterparties and diversifying investments, with no significant concentration or collection losses reported.
Argentina's highly inflationary designation had no material impact and is not expected to materially affect results or financial position.
For a discussion of legal proceedings as of June 30, 2026, please read Note 20, Litigation, to our condensed consolidated financial statements included in this report, which is incorporated into this item by reference.
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For a discussion of legal proceedings as of June 30, 2026, please read Note 20, Litigation, to our condensed consolidated financial statements included in this report, which is incorporated into this item by reference.
Revenue concentration, product launches, pricing pressures, and healthcare reforms pose material risks to Biogen's business.
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is substantially dependent on continued sales of key products and anti-CD20 financial rights, with increasing competition from generics, , and new originator therapies.
and face launch risks including reimbursement, commercial strategy, diagnostic requirements, and competition, which could delay or reduce anticipated .
Drug pricing and reimbursement are under intense pressure from U.S. reforms like the IRA and OBBBA, international reference pricing, and payer consolidation, threatening product and margins.
Failure to successfully develop new products or additional indications could undermine long-term growth, as pipeline programs face high uncertainty, regulatory hurdles, and potential strategic reprioritization.
The Apellis acquisition integration and commercialization of EMPAVELI and SYFOVRE present execution risks that could lead to asset impairments or failure to realize expected synergies.
Cybersecurity threats, including AI-driven attacks, and reliance on complex global manufacturing and third-party suppliers expose operations to disruptions, data breaches, and supply shortages.