Biogen Inc. (BIIB): Business Model Canvas [Dec-2025 Updated]

You're looking at Biogen Inc. right now, and honestly, it's a pivotal moment as they shift from relying on older Multiple Sclerosis (MS) drugs to pushing high-stakes new launches like Leqembi, which is already pulling in sales like the $257 million seen in Q3 2025 from new products. To fund this, they are aggressively cutting costs, aiming for $1 billion in savings by the end of 2025, all while sitting on about $4.0 billion in cash as of September 30, 2025, to fuel their neuroscience R&D. This Business Model Canvas breaks down exactly how Biogen Inc. is balancing the risk of pipeline development with the immediate need to commercialize specialized therapies like SKYCLARYS and ZURZUVAE, so you can see the structure behind their expected flat-to-one-percent revenue growth for the full year. Dive in below to see the precise partnerships and cost drivers behind this complex biotech engine.

Biogen Inc. (BIIB) - Canvas Business Model: Key Partnerships

The Key Partnerships block of the Business Model Canvas for Biogen Inc. centers on strategic alliances for drug development, commercialization, and manufacturing economics, especially for its newer launches and established revenue drivers.

The financial structures underpinning these relationships involve significant upfront payments, cost-sharing arrangements, and tiered royalty or profit-sharing percentages.

Partner	Product/Program Focus	Financial Structure Detail	Latest Reported Financial Data Point
Eisai Co., Ltd.	Leqembi (Lecanemab) Co-commercialization	Eisai leads development and has final decision-making authority.	Eisai projects Leqembi revenue of JPY 76.5 billion (approx. $525.1 million) for FY2025.
Samsung Bioepis	Biosimilar Development and Commercialization	50.0% sharing of net collaboration profits/loss.	Biogen recognized net profit-sharing expense of approx. $48.0 million for the three months ended March 31, 2025.
Sage Therapeutics	ZURZUVAE (Zuranolone) U.S. Commercialization	50% share of net revenue recorded by Biogen for collaboration revenue.	Sage recognized $23.2 million in collaboration revenue from ZURZUVAE in Q2 2025.
Stoke Therapeutics	Zorevunersen (Dravet Syndrome) Co-development/Commercialization (ex-US, Canada, Mexico)	Biogen paid $165 million upfront; covers 30% of external development costs.	Stoke may earn up to $385 million in milestones plus tiered royalties from low double digits to high teens.
Roche (Genentech)	Anti-CD20 Therapeutic Programs (e.g., Ocrevus, Glofitamab)	Royalties on sales of partnered anti-CD20 assets.	Biogen received royalty revenue on Ocrevus sales of $1,339.5 million for the full year 2024.

The agreements with Sage Therapeutics for ZURZUVAE include specific cost-sharing for Selling, General & Administrative (SG&A) expenses.

• Reimbursement from Sage to Biogen for SG&A expenses was $6.2 million in the second quarter of 2025.
• For the full year 2024, profit-sharing expense related to Sage Therapeutics was approximately $27 million.
• The SAGE-324 program collaboration was terminated, with Sage resuming full ownership of that asset effective February 17, 2025.

The relationship with Roche/Genentech on anti-CD20 programs is long-standing, dating back to 1995, and involves multiple assets.

• For the drug glofitamab, Biogen receives tiered royalties in the mid-single digits range on U.S. sales.
• Biogen receives royalties of up to 24% on U.S. sales of Ocrevus.
• Biogen's share of pre-tax profits in the U.S. for RITUXAN, GAZYVA, and LUNSUMIO was $392.0 million in 2024.

The collaboration with Eisai for Leqembi involves co-promotion and co-commercialization efforts, with Eisai leading regulatory submissions.

• Eisai's reported global revenue for Leqembi in fiscal year 2024 (ending March 31, 2025) was JPY 44.3 billion (approx. $304.1 million).
• The AHEAD 3-45 study for Leqembi in preclinical Alzheimer's disease was fully recruited in October 2024.

The economics with Samsung Bioepis are based on a 50.0% profit/loss share, stemming from the 2013 commercial agreement.

• For the three months ended March 31, 2024, the net profit-sharing expense was approximately $60.6 million.
• For the full year 2024, the net profit-sharing expense related to Samsung Bioepis was approximately $227.4 million.

The deal with Stoke Therapeutics for zorevunersen included a substantial upfront payment and cost-sharing for the Phase 3 EMPEROR study.

• Biogen's upfront payment to Stoke upon closing was $165 million.
• Biogen covers 30% of external clinical development costs, while Stoke covers 70%.
• Stoke recognized $152.4 million in revenue from the Biogen agreement for the three months ended March 31, 2025.

Biogen Inc. (BIIB) - Canvas Business Model: Key Activities

You're looking at the core actions Biogen Inc. is taking right now to keep the engine running and push new science through. It's a balancing act between high-stakes science and disciplined execution, especially as they hit the end of their major restructuring program.

High-risk, high-reward Research and Development (R&D) in neuroscience and rare diseases.

Biogen Inc. is definitely putting capital to work in R&D, though they are also managing overall spend. For the twelve months ending September 30, 2025, Research and Development expenses totaled $1.844B, which was a 9.51% decline year-over-year. To give you a snapshot from earlier in the year, Q1 2025 R&D Expense was $434.1 million, down 2.5% compared to Q1 2024. Still, they are making targeted investments; for instance, they planned additional R&D spending in 2025 primarily to accelerate and expand clinical development in rare disease areas. The combined Non-GAAP R&D expense and Non-GAAP SG&A expense was guided to total approximately $4.0 billion for the full year 2025.

Global commercialization and market access expansion for new launch products.

The success of the newer portfolio is a major focus, and the numbers show traction. In the third quarter of 2025, launch products delivered 67% year-over-year growth. For Q2 2025 specifically, newer products generated $252 million in revenue, marking a 26% increase quarter-over-quarter and a massive 91% increase year-over-year. Look at SKYCLARYS: its global revenue hit approximately $133 million in Q3 2025, representing 30% year-over-year growth. Alzheimer's drug LEQEMBI saw sales revenue of $33 million in Q1 2025, a big jump from just $2.8 million in Q1 2024. This growth is helping offset the pressure on the legacy Multiple Sclerosis (MS) franchise, which saw revenue decline by 11.4% in Q1 2025.

Executing the Fit for Growth program to realize $1 billion in gross savings by end of 2025.

This cost-optimization effort is a critical activity for funding future growth. Biogen Inc. expects the Fit for Growth program to generate approximately $1 billion of gross savings by the end of 2025. After accounting for reinvestment, the expected net savings is $800 million by the end of 2025. This program's savings are helping to offset spending in areas like sales and marketing for product launches.

Manufacturing and supply chain management for complex biologic and small molecule therapies.

Biogen Inc. is heavily investing in its physical capacity to support the pipeline. They announced plans to invest an additional $2 billion into their existing manufacturing footprint in North Carolina's Research Triangle Park (RTP). The company's North Carolina operations include seven manufacturing factories across multiple modalities, with an eighth state-of-the-art factory scheduled to be operational in the second half of 2025. To ensure resilience, more than 90% of their innovator commercial medicines have manufacturing and quality control testing performed in the US.

Here's a quick look at the manufacturing footprint scale:

Metric	Value/Count
Total Investment in NC Footprint (To Date)	Approximately $10 billion
Additional NC Investment Announced (2025)	$2 billion
Total NC Manufacturing Factories (Including New)	8 (by late 2025)
US-Based Manufacturing & QC Share	More than 90%

Clinical trial execution and regulatory submissions for late-stage pipeline assets.

Advancing the pipeline through rigorous testing and regulatory hurdles is non-negotiable. Biogen Inc. is actively executing late-stage trials, particularly in immunology and rare diseases. For example, they initiated three Phase 3 studies for the investigational drug felzartamab in 2025, targeting conditions like primary membranous nephropathy (PMN). The PROMINENT Phase 3 study for felzartamab is expected to have a readout in 2029. On the regulatory front, a supplemental new drug application (sNDA) for a higher dose regimen of nusinersen was accepted by the FDA in January 2025 and was under review.

Key pipeline activities involve:

• Advancing felzartamab in Phase 3 trials for kidney diseases.
• Ongoing Phase 3 study (AHEAD 3-45) for LEQEMBI in preclinical Alzheimer's disease.
• Evaluating omaveloxolone in a Phase 3 BRAVE clinical trial for pediatric Friedreich ataxia.
• Submitting an application for a subcutaneous injectable formulation of LEQEMBI in Japan in November 2025.

Biogen Inc. (BIIB) - Canvas Business Model: Key Resources

You're looking at the core assets Biogen Inc. (BIIB) is relying on to drive growth past the mid-decade mark. These aren't just abstract concepts; they are hard numbers and established capabilities that underpin their market position, defintely.

Extensive Intellectual Property (IP) portfolio for key treatments like Spinraza and Leqembi.

The value here is tied up in regulatory approvals and market exclusivity for novel therapies. For instance, the Alzheimer's drug LEQEMBI is approved in 51 countries as of late 2025, with applications under review in 9 more. This IP is what allows Biogen and its partner to command premium pricing and build revenue streams.

Specialized, large-scale biologics manufacturing and formulation capabilities.

Biogen is actively investing to maintain and expand this physical resource. The company intends to invest an additional $2 billion in its North Carolina Research Triangle Park (RTP) manufacturing footprint. Since breaking ground in 1995, Biogen has invested approximately $10 billion in its RTP manufacturing to date, including more than $3 billion in recent years. This supports resilient patient supply across multiple modalities, including expansion of antisense oligonucleotide (ASO) capabilities.

Deep scientific expertise in neurology, particularly Alzheimer's disease and MS.

This expertise translates directly into the performance of their key product lines, which are the engine of current revenue. The legacy Multiple Sclerosis (MS) franchise still generated $1 billion in total sales in the third quarter of 2025. The newer launch products, which include Alzheimer's, rare disease, and postpartum depression treatments, generated $257 million in revenue in Q3 2025, marking a 67% year-over-year increase.

Here's a quick look at the financial muscle and key product performance as of Q3 2025:

Financial/Product Metric	Amount/Value	As of Date/Period
Cash and Cash Equivalents	$4.0 billion	September 30, 2025
Net Debt	$2.3 billion	September 30, 2025
Total MS Product Revenue	$1 billion	Q3 2025
Total Launch Product Revenue	$257 million	Q3 2025
SKYCLARYS Global Revenue	$133 million	Q3 2025
ZURZUVAE U.S. Sales	$55 million	Q3 2025

Cash and cash equivalents of approximately $4.0 billion as of September 30, 2025.

The balance sheet strength is evident with approximately $4.0 billion in cash and marketable securities on hand at the end of the third quarter of 2025. This liquidity supports ongoing operations and strategic moves, like the planned business development transactions expected to close in the fourth quarter of 2025. The company is also focused on internal efficiency, aiming to achieve $1 billion in gross savings by the end of 2025 through its Fit for Growth program.

Global regulatory and commercial infrastructure spanning over 80 countries.

The commercial reach is broad, supporting the rollout of new assets. For example, SKYCLARYS has seen its expansion push reach 34 countries. The infrastructure supports the company's focus on key growth drivers, with management deploying differentiated strategies to reach more patients across new markets.

• LEQEMBI is approved in 51 countries.
• SKYCLARYS revenue grew 30% year-over-year in Q3 2025, reaching approximately $133 million globally.
• The company is working to expand ZURZUVAE reach following regulatory filings in Europe, the United Kingdom, and Canada.

Finance: review Q4 2025 BD transaction EPS impact by next Tuesday.

Biogen Inc. (BIIB) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Biogen Inc. offers its products to the market, which boils down to delivering specialized treatments where the need is greatest. The value propositions are anchored in first-in-class or best-in-class attributes for complex neurological and rare diseases.

Leqembi offers a significant convenience factor now that the subcutaneous injection (Leqembi IQLIK) has launched in October 2025 for maintenance dosing. This at-home option contrasts with the initial intravenous (IV) requirement. Global in-market sales for Leqembi in the third quarter of 2025 reached approximately $121 million, showing an 82% year-over-year growth. U.S. in-market sales for the same period were approximately $69 million. Real-world data suggests that of 178 people treated, 83.6% remained at the same clinical stage or improved from mild dementia to mild cognitive impairment.

SKYCLARYS provides the only disease-modifying therapy (DMT) approved to slow the progression of Friedreich's ataxia. Global revenue for SKYCLARYS in Q3 2025 was approximately $133 million, marking a 30% year-over-year increase. U.S. revenue for that quarter was approximately $75 million. As of the first quarter of 2025, there were 2,400 patients globally on this therapy.

SPINRAZA remains a global standard-of-care treatment for Spinal Muscular Atrophy (SMA), a rare genetic disorder of motor neurons. Global sales for SPINRAZA were $1.57 billion in 2024, and it generated global Q1 2025 sales of $423.9 million. More than 14,000 individuals have been treated with SPINRAZA worldwide across its approved indications. Furthermore, Biogen is advancing a higher dose regimen; in the DEVOTE Part C study, non-ambulatory participants transitioned to the higher dose improved by +2.5 on the Hammersmith Functional Motor Scale (HFMSE) scale.

For postpartum depression, ZURZUVAE is an oral treatment offering a novel mechanism of action as a GABA-A receptor modulator, providing rapid efficacy. Third quarter 2025 revenue for ZURZUVAE was approximately $55 million, showing strong continued growth. In the second quarter of 2025, U.S. sales reached $46.4 million, and over 13,500 prescriptions had been shipped since its December 2023 launch.

The overall value proposition centers on addressing high unmet medical needs in complex neurological and rare diseases. This strategy is translating into financial performance, as Biogen's rare disease drugs alone generated $563 million in revenue in Q1 2025, a 33% year-over-year increase. Across all launch products (Alzheimer's, rare disease, and PPD), Biogen delivered 67% year-over-year growth in Q3 2025, with these products generating $257 million in that quarter.

Here's a quick look at the recent financial performance tied to these key value drivers:

Product	Latest Reported Global Revenue (Q3 2025)	Year-over-Year Growth (Latest Reported)	Key Statistical Metric
LEQEMBI	$121 million	82%	Subcutaneous maintenance launched October 2025
SKYCLARYS	$133 million	30%	2,400 patients on therapy globally (Q1 2025)
ZURZUVAE	$55 million	Strong continued growth	Over 13,500 prescriptions shipped since launch (Q2 2025)
SPINRAZA	Not specified for Q3 2025	N/A	$1.57 billion global sales in 2024

The focus on these specialized areas is supported by pipeline progress, which reinforces future value:

• LEQEMBI IQLIK subcutaneous maintenance launched in October 2025.
• High dose nusinersen (SPINRAZA) resubmission to the FDA has an updated PDUFA date of April 3, 2026.
• Two litifilimab Phase 3 studies for systemic lupus erythematosus are fully enrolled, with data readout accelerated to H2 2026.
• The company expects total revenue for the full year 2025 to be approximately flat to increasing 1% at constant currency versus 2024.

The rare disease segment revenue in Q1 2025 was $563 million, representing 45% of total product revenue.

Biogen Inc. (BIIB) - Canvas Business Model: Customer Relationships

Biogen Inc. focuses its customer relationships on specialized healthcare providers and ensuring patient access to complex, often newly launched, therapies.

High-touch, specialized medical education and support for neurologists and infusion centers

The relationship with neurologists and infusion centers is critical, especially for products requiring specialized administration or complex monitoring, such as the Alzheimer's therapy LEQEMBI. While specific spending on medical education isn't public, the overall investment in commercialization reflects this focus. Biogen expects combined Non-GAAP Research and Development expense and Non-GAAP Selling, General, and Administrative expense to total approximately $4.0 billion for the full year 2025. For the fourth quarter of 2025, this combined expense is expected to total approximately $1.1 billion.

The success of new launches is evident in the revenue trajectory:

Product	Metric	Value (as of late 2025)
ZURZUVAE (PPD)	Q3 2025 Revenue	$46 million
ZURZUVAE (PPD)	Sequential Growth (Q2 to Q3 2025)	68%
SKYCLARYS (FA)	Q2 2025 Global Revenue	Approximately $130 million
LEQEMBI (Alzheimer's)	Q1 2025 Global Sales	Approximately $96 million

Patient support programs to navigate access, reimbursement, and administration logistics

Biogen Support Services deploys a comprehensive suite of tools to help patients, caregivers, and healthcare professionals manage access and cost. This includes benefit investigation to understand coverage, assistance with prior authorizations and denied claims, and insurance counseling for the uninsured or underinsured.

Specific support offerings include:

• The Biogen $0 copay program for eligible commercially insured patients, subject to an annual cap.
• For TYSABRI, the Infusion Copay Assistance Program offers assistance up to $250 per infusion.
• Specific medication assistance programs exist, such as Biogen REACH for SKYCLARYS and the Biogen Support Program for Qalsody.
• Patients covered by Medicare, Medicaid, the VA/DoD, or any other federal plans are not eligible to enroll in the Biogen Copay Program.

Globally, around 2,400 patients are on SKYCLARYS treatment. Since its 2023 launch, ZURZUVAE has treated more than 10,000 women.

Direct sales force engagement with prescribers, expanded for new product launches like ZURZUVAE

The direct sales force engages prescribers to drive adoption of new launches. The growth in launch product revenue reflects this commercial effort; for example, launch product revenue more than doubled year-over-year in the first quarter of 2025. The increase in first quarter 2025 Non-GAAP SG&A was driven primarily by sales and marketing spend to support these product launches. For ZURZUVAE, which Biogen jointly markets in the U.S. (now with Supernus Pharmaceuticals as the partner following Supernus' acquisition of Sage Therapeutics in July 2025), initial prescription trends involved psychiatrists, OB-GYNs, and primary care physicians.

Strategic engagement with key opinion leaders (KOLs) and patient advocacy groups

Strategic engagement with Key Opinion Leaders (KOLs) is a pivotal capability influencing clinical development and market access strategy. Industry benchmarks suggest that technology and enablement investments supporting structured engagement platforms can represent 15-25% of retained value in standard therapeutic areas, potentially rising to 30-35% in rare disease or high-complexity settings. The focus has evolved to include a broader ecosystem of stakeholders, such as care teams, nursing communities, pharmacists, and patient advocacy groups, beyond traditional KOLs. Biogen continues to advance its pipeline, which involves presenting data to shape scientific narratives, such as presenting data for zorevunersen at the 2025 American Epilepsy Society (AES) Annual Meeting. Finance: draft 13-week cash view by Friday.

Biogen Inc. (BIIB) - Canvas Business Model: Channels

Global network of specialty pharmacies and distributors for high-cost, specialty drugs

Biogen Inc. relies on established distribution channels to get its specialty medicines to patients. For certain products, like ZURZUVAE®, the company utilizes a limited distribution pharmacy network. In the broader market context as of January 2025, there were approximately 2,000 unique specialty pharmacy locations, with 34% of specialty drugs utilizing an exclusive network (only one pharmacy). Pharmacies affiliated with the three largest pharmacy benefit managers accounted for two-thirds of prescription revenues from pharmacy-dispensed specialty drugs in 2024.

Direct sales and marketing teams targeting specialized physicians (e.g., neurologists, psychiatrists)

The commercial engine for Biogen Inc. involves dedicated teams reaching specialists. The company's adjusted selling, general and administrative (SG&A) expenses, which include sales and marketing spend, are a key component of operational outlay. Biogen Inc. expected combined Non-GAAP R&D expense and Non-GAAP SG&A expense to total approximately $1.1 billion in the fourth quarter of 2025. This spend supports the launch of newer drugs outside the Multiple Sclerosis (MS) portfolio, such as those in Rare Disease and Alzheimer's.

Contract manufacturing for third-party products, generating revenue of $10 million to $20 million in Q4 2025

Biogen Inc. generates revenue from manufacturing services for other entities. For the fourth quarter of 2025, Biogen Inc. expects manufacturing revenue from contract manufacturing to be between $10 million and $20 million. This figure is subject to planned campaign timing versus Biogen Inc.'s innovator product manufacturing.

Regulatory bodies (FDA, EMA) for product approval and label expansion

Access to key markets is channeled directly through regulatory clearances. The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) rendered a positive opinion recommending marketing approval for LEQEMBI in November 2024. Separately, BIIB080, an investigational ASO therapy targeting tau for Alzheimer's disease, received FDA Fast Track designation.

Here are some key figures related to the operational scale of Biogen Inc.'s channels and related financial context:

Channel/Metric Context	Financial/Statistical Figure	Period/Date Context
Expected Contract Manufacturing Revenue	$10 million to $20 million	Q4 2025 Guidance
Estimated Total Specialty Pharmacy Locations (Market)	Approximately 2,000	2025
Expected Combined Non-GAAP R&D and SG&A Expense	Approximately $1.1 billion	Q4 2025
Percentage of Specialty Drugs with Exclusive Networks (Market)	34%	January 2025
Estimated Gross Savings from Fit for Growth Program	Approximately $1 billion	By end of 2025

The company's commercial strategy requires navigating payer access, which influences which specialty pharmacies can dispense its high-cost therapies. Health plans and PBMs frequently narrow networks, impacting unaffiliated pharmacies' access.

Biogen Inc. (BIIB) - Canvas Business Model: Customer Segments

The customer segments for Biogen Inc. are highly specialized, focusing on patients with severe neurological and neurodegenerative conditions, alongside the healthcare providers and payers who manage access to their therapies.

Patients with Early Alzheimer's Disease and their caregivers.

This segment is targeted with LEQEMBI, which gained approval for maintenance dosing via the LEQEMBI IQLIK subcutaneous injection in October 2025. The U.S. prescriber base for LEQEMBI grew 14% quarter-over-quarter in the third quarter of 2025, and the drug captured roughly half of all new patients treated with anti-amyloid therapies in that same period.

The revenue generated by this segment's primary product shows clear adoption momentum:

Metric	Amount/Value	Period/Context
LEQEMBI Global In-Market Sales	$121 million	Q3 2025
LEQEMBI U.S. In-Market Sales	$69 million	Q3 2025
LEQEMBI Global In-Market Sales	$96 million	Q1 2025

Neurologists and specialized treatment centers for Multiple Sclerosis and SMA.

Neurologists treating Multiple Sclerosis (MS) remain a core segment, as the MS franchise continues to be a top revenue contributor, though facing generic erosion ex-U.S. for TECFIDERA. Global revenue from the MS franchise in the third quarter of 2025 was approximately $1 billion, marking a 1% year-over-year growth.

For Spinal Muscular Atrophy (SMA), Biogen is focused on the existing patient base using SPINRAZA, with global revenue expected to be relatively flat in fiscal year 2025. The company also resubmitted high-dose nusinersen (SPINRAZA) to the FDA, with an updated Prescription Drug User Fee Act (PDUFA) date set for April 3, 2026.

Patients with rare neurological disorders like Friedreich's ataxia and Dravet syndrome.

This segment is served by SKYCLARYS for Friedreich's ataxia (FA) and Zorevunersen (in collaboration) for Dravet syndrome. Biogen estimates there are about 4,800 FA patients in the U.S. The company is expanding the SKYCLARYS indication, initiating a Phase 3 study in children with FA between the ages of 2 to less than 16.

The financial performance of the rare disease portfolio, which includes SKYCLARYS, is substantial:

• SKYCLARYS Global Revenue: $133 million (Q3 2025)
• SKYCLARYS U.S. Revenue: $78 million (Q3 2025)
• SKYCLARYS Ex-U.S. Revenue: $58 million (Q3 2025)
• SKYCLARYS Global Revenue: $124 million (Q1 2025)

Government health systems (e.g., Medicare/Medicaid) and private payers/insurers.

Payers and government systems dictate access and net realized price. The U.S. MS business performance in Q3 2025 was favorably impacted by gross-to-net adjustments, which directly relates to payer dynamics. Furthermore, U.S. SKYCLARYS revenue in Q3 2025 was impacted by an expected Medicare true up.

The overall revenue picture for Biogen's launch products, which are heavily reliant on payer coverage, shows strong growth:

Segment	Q3 2025 Revenue	Year-over-Year Growth
Launch Products (Total)	$257 million	67%
Alzheimer's (LEQEMBI)	$121 million	82%
Rare Disease (SKYCLARYS)	$133 million	30%

Psychiatrists and women's health specialists for postpartum depression treatment.

This segment is targeted with ZURZUVAE. The revenue for this treatment has shown rapid sequential uptake. Roughly 80% of prescriptions for ZURZUVAE are being written by obstetrician-gynecologists (OB-GYNs).

Revenue figures for ZURZUVAE demonstrate this strong adoption:

• ZURZUVAE Revenue: $55 million (Q3 2025)
• ZURZUVAE Revenue: $46 million (Q2 2025)
• ZURZUVAE Revenue: $28 million (Q1 2025)

Biogen Inc. (BIIB) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive Biogen Inc.'s operations as of late 2025. It's a cost structure heavily weighted toward innovation and commercialization, reflecting the high-stakes nature of developing complex biologics.

Research and Development (R&D) and Selling, General, and Administrative (SG&A) are the dominant operating costs. For the full year 2025, Biogen expects the combined Non-GAAP R&D expense and Non-GAAP SG&A expense to total approximately $4.0 billion. This figure reflects continued investment in clinical development, especially in rare disease, balanced against efficiency gains. For the fourth quarter of 2025 alone, this combined expense is projected to be approximately $1.1 billion.

The SG&A component is directly influenced by the need to support new product launches. For instance, the third quarter of 2025 saw GAAP SG&A expense at $595 million and Non-GAAP SG&A expense at $592 million. This spending on sales and marketing is a necessary cost to drive adoption for newer therapies.

Manufacturing costs, or Cost of Goods Sold (COGS), reflect the complexity of producing biologics. For the twelve months ending September 30, 2025, Biogen's Cost of Goods Sold reached approximately $2.492 billion. Looking at the third quarter of 2025 specifically, GAAP cost of sales was $674 million, representing 27% of total revenue, while Non-GAAP cost of sales was $510 million, or 20% of total revenue.

Collaboration profit sharing represents a significant, variable cost tied to successful partnerships. In the third quarter of 2025, this was a net expense of approximately $87 million. This total included a specific payment of approximately $67 million related to the collaboration with Samsung Bioepis.

The company's ongoing optimization efforts are a direct cost management strategy. The Fit for Growth program is a major driver here, expected to generate approximately $1 billion of gross savings and $800 million net of reinvestment by the end of 2025. These restructuring and optimization costs are designed to streamline operations, though specific restructuring charges for 2025 aren't itemized separately in the immediate guidance, the savings are factored into the expense guidance.

Here's a quick look at the most recent reported expense components for Q3 2025:

Expense Category (GAAP)	Q3 2025 Amount (in millions)	Q3 2024 Amount (in millions)
Cost of Sales	$674	$639
R&D Expense	$436	$516
SG&A Expense	$595	$588

You can see the R&D expense reduction in Q3 2025 compared to Q3 2024, which was driven by the Fit for Growth initiative and R&D funding received. The SG&A increase, however, was primarily due to launch support spend.

The key cost drivers and related financial impacts include:

• Full Year 2025 combined Non-GAAP R&D and SG&A guidance: $4.0 billion.
• Q3 2025 Non-GAAP Collaboration Profit Sharing expense: $87 million.
• Samsung Bioepis Q3 2025 profit sharing component: $67 million.
• Twelve Months Ended September 30, 2025 COGS: $2.492 billion.
• Expected Gross Savings from Fit for Growth by end of 2025: $1 billion.

Finance: draft 13-week cash view by Friday.

Biogen Inc. (BIIB) - Canvas Business Model: Revenue Streams

You're looking at how Biogen Inc. is bringing in the cash flow right now, late in 2025. It's a mix of legacy stability and new growth engines, but you have to watch the erosion on the older blockbusters.

The Multiple Sclerosis (MS) franchise, which includes Tysabri and Vumerity, is still a major component, though it's definitely feeling the pressure from generics and competition. For the third quarter of 2025, MS product revenue came in at $1,062 million, which was actually a slight increase of 1% compared to the $1,054 million seen in the third quarter of 2024. Still, Q2 2025 showed a 4% year-over-year decline for this segment, so you see that tug-of-war happening.

The growth story is clearly in the newer launches. The combined sales from Leqembi, Skyclarys, ZURZUVAE, and QALSODY totaled $257 million in Q3 2025. This is the future, honestly.

Here's a quick look at the product revenue breakdown from the third quarter of 2025, in millions:

Revenue Segment	Q3 2025 Revenue (Millions)	Year-over-Year Change (Q3 \'25 vs Q3 \'24)
Multiple Sclerosis (MS) Product Revenue	$1,062	1%
Rare Disease Revenue (includes SPINRAZA, SKYCLARYS, QALSODY)	$533	8%
Other Product Revenue (includes ZURZUVAE and LEQEMBI Collaboration Share)	$55	129%
Biosimilars Revenue	$197	-%

The Spinal Muscular Atrophy (SMA) treatment, Spinraza, is part of that Rare Disease revenue line. For Q3 2025, the entire Rare Disease segment hit $533 million, marking an 8% increase over the prior year's $495 million for the same period. Skyclarys global revenue specifically was approximately $133 million in Q3 2025, showing 30% year-over-year growth.

Collaboration revenue comes in through profit-sharing arrangements. You should note that collaboration profit sharing was a net expense in Q3 2025, totaling approximately $87 million. This included about $67 million tied to the Samsung Bioepis collaboration. The revenue share from the LEQEMBI Collaboration is captured within the Other product revenue line, which saw massive growth.

Looking ahead, Biogen Inc. expects its total revenue for the full year 2025 to be approximately flat to increasing 1% at constant currency versus the full year 2024. That's a solid revision from earlier expectations, reflecting the momentum you see in these newer assets.

Here are the key revenue drivers you need to track:

• MS revenue resilience, particularly in the U.S. market.
• Growth from launch products like Leqembi and Skyclarys.
• The contribution from ZURZUVAE, which was $24 million in Q3 2024 and is now part of the rapidly growing Other product revenue stream.
• The expected competitive pressures on ex-U.S. MS business in the fourth quarter of 2025, especially for TECFIDERA in Europe.

Finance: draft 13-week cash view by Friday.