Summary
Biogen Inc. reported a challenging year in 2021, with total revenue decreasing by 18.3% to $10.98 billion, largely driven by a significant 17.3% drop in product revenue, primarily due to increased generic competition for TECFIDERA in the U.S. and a decline in Multiple Sclerosis (MS) product sales. Revenue from anti-CD20 therapeutic programs also saw a notable decrease of 16.1%. The company made significant investments in its pipeline, entering into new collaborations and exercising options, indicating a continued focus on future growth. Despite the revenue decline, Biogen ended the year with a strong cash position and ongoing share repurchase programs, demonstrating a commitment to capital return to shareholders.
Financial Highlights
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Financial Statements
Beta
| Revenue | $10.98B |
| Cost of Revenue | $2.11B |
| Gross Profit | $8.87B |
| SG&A Expenses | $2.67B |
| Operating Expenses | $9.24B |
| Operating Income | $2.84B |
| Interest Expense | $253.60M |
| Net Income | $1.56B |
| EPS (Basic) | $10.44 |
| EPS (Diluted) | $10.40 |
| Shares Outstanding (Basic) | 149.10M |
| Shares Outstanding (Diluted) | 149.60M |
Key Highlights
- 1Total revenue decreased by 18.3% to $10.98 billion in 2021, primarily due to a 17.3% decline in product revenue.
- 2Multiple Sclerosis (MS) product revenue fell by 22.2%, heavily impacted by U.S. generic competition for TECFIDERA.
- 3Revenue from anti-CD20 therapeutic programs decreased by 16.1%, impacted by biosimilar competition for RITUXAN.
- 4ADUHELM received accelerated FDA approval in June 2021 for Alzheimer's disease, though initial sales were minimal and future reimbursement remains a key watchpoint.
- 5Biogen made significant strategic investments in its pipeline through new collaborations and option exercises, including for orelabrutinib for MS and BIIB115 for SMA.
- 6The company is planning to sell its equity in Samsung Bioepis to Samsung Biologics for $1 billion in cash at closing, plus deferred payments and potential milestones.
- 7Biogen repurchased $1.8 billion of its common stock during 2021 under its ongoing share repurchase program.
Frequently Asked Questions
The primary driver of Biogen's revenue decline in 2021 was the significant impact of generic competition for TECFIDERA in the U.S. market, which led to a substantial decrease in Multiple Sclerosis (MS) product revenue. Additionally, revenue from anti-CD20 therapeutic programs decreased due to biosimilar competition for RITUXAN.
ADUHELM received accelerated FDA approval in June 2021 for Alzheimer's disease. However, sales were minimal in 2021, and the company anticipates a gradual patient uptake due to factors like provider readiness, patient selection, and reimbursement uncertainty, particularly with the proposed Medicare coverage limitations that require enrollment in clinical trials.
Biogen is actively investing in its pipeline through new collaborations and strategic options. Notable activities include entering a collaboration with InnoCare for orelabrutinib (MS), exercising an option with Ionis for BIIB115 (SMA), and progressing its Alzheimer's disease candidate lecanemab (in collaboration with Eisai). These moves underscore a commitment to diversifying its portfolio and addressing significant unmet medical needs.
Biogen has entered into an agreement to sell its equity in Samsung Bioepis to Samsung Biologics for approximately $1 billion in cash at closing, plus deferred payments and potential commercial milestone payments. This strategic move aims to streamline operations and capitalize on the value of this investment.