Apellis Pharmaceuticals Inc

Biogen reported second-quarter profit and revenue that topped Wall Street estimates, driven by strong demand for its rare-disease medicines. The company earned an adjusted $3.60 per share, above the expected $2.95, while quarterly revenue reached $2.74 billion, surpassing the estimate of $2.46 billion. Global sales of its Alzheimer's drug Leqembi rose 15% to about $184 million, and Biogen expects a new under-the-skin formulation to boost uptake. However, the company cut its 2026 adjusted per-share profit forecast to between $12 and $13 from between $14.25 and $15.25, partly due to a $3.85 per share impact from acquisition-related charges, including an 85-cent-per-share hit from its $5.6 billion buyout of Apellis Pharmaceuticals. Sales of legacy multiple sclerosis drugs such as Tecfidera fell 13% to $963 million.

Biogen is scaling back Apellis Pharmaceuticals' research pipeline and reducing R&D staff weeks after completing its $5.6 billion acquisition. The company has suspended several legacy programs, including Phase II studies for Empaveli in delayed graft function and focal segmental glomerulosclerosis, citing strategic evaluations and recruitment challenges. Biogen is maintaining focus on a key Phase II trial for the eye disease therapy Syfovre in combination with an RNA interference inhibitor, signaling its primary interest in the pegcetacoplan franchise marketed as Empaveli and Syfovre. Forecasts suggest the franchise could generate $785 million by 2032. The future of Apellis' preclinical assets, such as RNA-based therapies and a gene-editing project, remains unclear.

Biogen shares rose 5.6% in afternoon trading as investors reacted to a series of positive developments, including the $1 billion acquisition of RayThera Inc., an FDA Breakthrough Therapy designation for its spinal muscular atrophy drug candidate Salanersen, and a recent upgrade to Buy from Needham. The RayThera deal strengthens Biogen's immunology pipeline, while the Breakthrough Therapy tag for Salanersen highlights its potential in treating spinal muscular atrophy. The company also reported a strong first-quarter earnings beat and is integrating its multi-billion dollar purchase of Apellis by halting some research programs to focus on key marketed drugs Empaveli and Syfovre. Biogen's stock has gained 19.7% year-to-date, reaching a new 52-week high of $212.80 per share.