Biogen Earnings: Full-Year Guidance Raised; Early Leqembi Sales Encouraging but Uncertainty Remains

Narrow-moat Biogen reported results that were in line with our expectations, which reflects encouraging improvement in operating profit margins. Additionally, the company slightly raised its full-year guidance for operating income to grow at a high-teen percentage from the last quarter's mid- to high-teen percentage. We maintain our fair value estimate of $303 per share but note that Leqembi, a crucial piece of Biogen's story, is not yet derisked and remains a source of considerable uncertainty.