Biogen (BIIB.US) has posted quarterly revenue and adjusted earnings that exceeded analyst expectations, driven by sales growth from newly acquired kidney and eye disease drugs, which successfully compensated for the revenue decline from its multiple sclerosis (MS) product line.

The fiscal report shows that the company's Q2 revenue increased by 3.8% year-over-year to $2.7 billion, beating estimates by $240 million, while earnings per share came in at $3.60, exceeding projections by $1.57. The company has raised its full-year revenue guidance, stating it now expects sales to achieve mid-single-digit percentage growth, contrary to the previous forecast of a mid-single-digit percentage decline.

However, Biogen lowered its adjusted earnings guidance to reflect acquisition-related costs and milestone payments. The company reduced its full-year adjusted earnings per share forecast from a range of $14.25 to $15.25 down to between $12.00 and $13.00, reflecting R&D expenses tied to acquisitions, milestone payments, and financing costs related to the Apellis transaction. Biogen noted that without these items, its underlying earnings expectations would have increased by $0.60 per share.

Under the leadership of CEO Christopher Viehbacher, Biogen has adopted an aggressive acquisition strategy to expand beyond its traditional neuroscience business and identify new growth sources to replace its aging portfolio of multiple sclerosis drugs. This approach has led the company into new therapeutic areas such as kidney disease and immunology. Viehbacher stated in a release that Biogen has made "significant progress" in driving the company back toward growth, noting that sales from its new drugs now exceed the declining revenues from its legacy MS franchise.

Among the key products, the Alzheimer's disease drug Leqembi, developed in collaboration with Eisai, saw quarterly sales rise 15% to $184 million, roughly in line with analyst expectations. In May, Biogen completed the acquisition of Apellis Pharmaceuticals Inc. for $5.6 billion. Apellis' portfolio includes Syfovre, used for treating a blinding immune system disorder, and Empaveli, for a rare blood disease and a specific rare kidney condition. Biogen reported that these two drugs generated nearly $128 million in revenue during the remainder of the quarter.

In June, Biogen also announced it would acquire privately held immunology drug developer RayThera Inc. for up to $1 billion. Several other new drugs recorded strong quarterly growth. The postpartum depression treatment Zurzuvae posted a 53% surge in sales to $71 million, while Skyclarys, for the rare disease Friedreich's ataxia, achieved sales of approximately $168 million, exceeding analyst projections.