Biogen’s Strategic Pivot Faces Critical Test with New Alzheimer’s Therapy

Biogen Inc. finds itself at a crucial inflection point. The pharmaceutical giant is navigating a deliberate shift away from its core multiple sclerosis business, which continues its gradual decline, and toward new growth pillars in immunology and rare diseases. Under the leadership of CEO Christopher Viehbacher, this strategic overhaul represents a significant bet on the company’s future. The central question for investors is whether the recently approved subcutaneous Alzheimer’s treatment, LEQEMBI IQLIK, can deliver the necessary growth catalyst or if Biogen will fall behind in the intensely competitive Alzheimer’s therapeutic landscape.

Financial Strength and Strategic Imperatives

The company’s second-quarter 2025 results provide a solid foundation for this transition, having surpassed expectations with earnings per share of $5.47 and revenue reaching $2.65 billion. Despite this financial strength, the urgency of Biogen’s situation is underscored by a significant patent cliff approaching between 2035 and 2040. This timeline emphasizes the critical need for successful pipeline development and strategic repositioning. The company is actively exploring additional growth opportunities, including potential expansion into the competitive GLP-1 market segment.

During Monday’s Morgan Stanley Healthcare Conference, Viehbacher outlined the company’s bold new direction. The move comes as the once-dominant MS portfolio, long considered the company’s cash cow, continues to diminish in importance, creating pressing demand for alternative revenue streams.

Should investors sell immediately? Or is it worth buying Biogen?

LEQEMBI IQLIK: The Pivotal Launch

The recent FDA approval of LEQEMBI IQLIK in late August represents the cornerstone of Biogen’s near-term strategy. This subcutaneous formulation allows for weekly self-administration at home following an initial 18-month intravenous treatment period. This convenience factor could prove transformative for LEQEMBI’s commercial prospects, addressing what Viehbacher identified as key adoption barriers: complex IV administration protocols and the need for adjustments within neurological practices.

The commercial rollout of LEQEMBI IQLIK, scheduled for October 6, 2025, will serve as the ultimate test of Biogen’s strategic vision. Market acceptance of this more convenient delivery method could potentially unlock significant growth. Collaboration partner Eisai is already working on further simplification through a weekly starting dosage regimen.

Market Perspective and Future Outlook

Analysts maintain cautious optimism regarding Biogen’s prospects, with an average price target of $185.74 suggesting substantial upside potential exceeding 30%. Whether the company can meet these expectations may become clearer when third-quarter results are released in late October. Until then, investors will be closely monitoring the early commercial performance of LEQEMBI IQLIK, recognizing that Biogen’s future trajectory largely depends on this launch’s success in an Alzheimer’s market where competitors like Eli Lilly continue to advance their own therapies.