The Market is Mispricing Biogen’s Neurology Transformation
- Ally Kahne
- Jan 21
- 5 min read
How a Legacy MS Company Is Rebuilding Around Alzheimer’s, Rare Disease, & Neurology
For over a decade, Biogen (Nasdaq: BIIB) was synonymous with its Multiple Sclerosis (MS) franchise, a dependable, high-margin cash engine that defined the company’s identity. However, as biosimilar competition and therapeutic saturation eroded this legacy foundation, the market began to treat Biogen as a story of inevitable decline.
The reality emerging in 2026 is far more complex. Rather than a classic contraction, Biogen is undergoing a strategic reinvention, pivoting away from MS dependence toward a diversified model built on Alzheimer’s disease, rare neurological disorders, and a de-risked late-stage pipeline. The objective is clear: to transition from a single-franchise player into a scalable, multi-pillar neuroscience platform.
LEQEMBI: Scaling the Alzheimer’s Inflection Point
The centerpiece of Biogen’s transformation is LEQEMBI (lecanemab), the first disease-modifying Alzheimer’s therapy to secure broad global approval. Developed in partnership with Eisai, the monoclonal antibody targets amyloid pathology with statistically significant results in slowing cognitive decline.
While the initial launch faced the logistical hurdles typical of infusion-based therapies, the strategy has moved into a "scaling phase." The August 2025 FDA approval of a subcutaneous maintenance formulation was a critical milestone, but the upcoming supplemental Biologics License Application (sBLA) for subcutaneous initiation is the true commercial catalyst. If approved, it would:
Decentralize Care: Remove the requirement for an 18-month initial IV infusion period, allowing for at-home dosing from day one.
Lower Infrastructure Barriers: Enable adoption in regions lacking specialized infusion centers.
Establish a Competitive Moat: Position LEQEMBI as the only anti-amyloid therapy offering a fully subcutaneous, at-home dosing profile.
This shift effectively transforms LEQEMBI from a specialized, hospital-bound intervention into a scalable chronic treatment platform.
Rare Disease: The Durable Growth Engine
While Alzheimer’s captures the headlines, Biogen’s expanding rare disease portfolio provides the fiscal stability needed to fund long-term R&D. This segment is defined by high unmet needs, limited competition, and strong reimbursement dynamics:
SKYCLARYS (Friedreich’s Ataxia): As the only FDA-approved treatment for this condition, it has seen rapid global expansion, providing a high-margin revenue stream with a long-duration exclusivity window.
QALSODY (ALS): Targeting the SOD1 mutation, this therapy establishes Biogen’s leadership in genetic neurology, supported by emerging functional data that strengthens its clinical position.
SPINRAZA (SMA): Despite newer competitors, SPINRAZA remains a foundational asset, generating significant cash flow to fuel the company's newer ventures.
By building this "Rare Disease Engine," Biogen is insulating itself against the rapid erosion of the MS market, replacing volatile primary-care-style revenues with stable, orphan-designated growth.
De-Risking the Future: The Catalyst Calendar
The final pillar of the rebuild is a late-stage pipeline designed to mitigate "single-point-of-failure" risk. Biogen’s development strategy now prioritizes assets with a high probability of technical success and near-term commercial impact:
Immunology Pivot: Assets like litifilimab and dapirolizumab pegol represent a move into high-value autoimmune indications like lupus.
Orphan Neurology: Zorevunersen targets Dravet syndrome, further cementing the rare disease pillar.
With two regulatory decisions and five clinical trial readouts expected in 2026 alone, the company is maintaining a "high-velocity" catalyst calendar. This cadence is intended to prove to investors that Biogen is capable of generating a consistent stream of new launches to offset any accelerated MS decline.
Market Realism: Pricing in the Past
Despite these fundamental shifts, Biogen’s valuation (EV/EBITDA) continues to reflect market skepticism rather than the reality of its transformation. The discount is largely driven by historical concerns over the slow ramp of Alzheimer’s drugs and the inevitable MS sunset.
However, the "new" Biogen is structurally different. It possesses:
A validated, global Alzheimer’s platform moving toward a convenient subcutaneous model.
A high-margin rare disease portfolio with durable, long-term growth.
A de-risked late-stage pipeline with multiple near-term catalysts.
From Legacy to Platform
Biogen should no longer be analyzed through the lens of its MS history. It is becoming a diversified neurology platform built on first-in-class therapies and industrialized clinical development. While execution remains the primary risk—particularly regarding LEQEMBI’s real-world adoption and payer negotiations—strategically, the company has already crossed the threshold from a legacy entity in decline to a modern biotech in mid-transformation.
In this new era, Biogen’s value will be determined not by how it manages the end of MS, but by how it scales the future of neurology.
Read more about the impact of federal research funding cuts on the future of medicine and learn about the most anticipated drug launches of 2025.
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