10-QPeriod: Q2 FY2013

BIOGEN INC. Quarterly Report for Q2 Ended Jun 30, 2013

Filed July 25, 2013For Securities:BIIB

Summary

Biogen Idec Inc. reported strong financial performance for the second quarter and first half of 2013, driven by significant revenue growth across its key products, particularly TYSABRI and the newly launched TECFIDERA. Total revenues increased by 21.3% year-over-year for the quarter, reaching $1.72 billion, with income from operations up 31.0% to $662.5 million. Net income attributable to Biogen Idec Inc. rose 26.8% to $490.7 million, resulting in diluted earnings per share of $2.06, a 27.8% increase from the prior year. The company's acquisition of full rights to TYSABRI on April 2, 2013, significantly impacted results by allowing Biogen to recognize 100% of U.S. revenues and expenses for the product. The successful U.S. launch of TECFIDERA in April 2013 also contributed positively, generating $192.1 million in its debut quarter. While established products like AVONEX showed modest growth, the combined impact of these factors indicates robust operational momentum and successful strategic execution. Key financial highlights include strong revenue growth, increased profitability, and positive cash flow from operations. The company's balance sheet remains solid, with substantial cash, cash equivalents, and marketable securities, enabling continued investment in R&D and strategic initiatives. Despite competitive pressures and global economic uncertainties, Biogen Idec appears well-positioned for continued growth.

Financial Highlights

54 data points
Beta

Revenue

$1.72B

86.6% Gross Margin

Net Income

$490.70M

28.5% Net Margin

EPS (Diluted)

$2.06

Total Assets

$10.84B

Cash & Equivalents

$392.51M

Free Cash Flow

$571.06M

Financial Statements
Beta
Revenue$1.72B
Cost of Revenue$230.73M
Gross Profit$1.49B
SG&A Expenses$431.01M
Operating Expenses$1.07B
Operating Income$662.53M
Interest Expense$7.30M
Net Income$490.70M
EPS (Basic)$2.07
EPS (Diluted)$2.06
Shares Outstanding (Basic)237.48M
Shares Outstanding (Diluted)238.74M

Key Highlights

  • 1Total revenues for Q2 2013 increased 21.3% to $1.72 billion compared to Q2 2012.
  • 2Net income attributable to Biogen Idec Inc. grew 26.8% to $490.7 million in Q2 2013.
  • 3Diluted EPS increased 27.8% to $2.06 in Q2 2013.
  • 4Acquisition of full TYSABRI rights on April 2, 2013, leading to 100% recognition of U.S. TYSABRI revenues.
  • 5Successful U.S. launch of TECFIDERA in April 2013, generating $192.1 million in revenue in its first quarter.
  • 6AVONEX revenues grew 1.6% to $774.4 million in Q2 2013.
  • 7Cash flows from operating activities were $804.2 million for the first six months of 2013.

Frequently Asked Questions

The primary driver was the acquisition of full ownership of TYSABRI rights on April 2, 2013, which allowed Biogen to recognize 100% of U.S. TYSABRI revenues and expenses. Additionally, the successful U.S. commercial launch of TECFIDERA in April 2013 contributed significantly to revenue growth.

TECFIDERA was approved in the U.S. in March 2013 and commercial sales began in April 2013. It generated $192.1 million in revenue for the second quarter of 2013, with approximately $82.0 million representing inventory held by wholesalers and specialty pharmacies. This new product launch positively impacted overall revenue and demonstrated strong initial market uptake.

As of June 30, 2013, Biogen Idec had a solid liquidity position with approximately $774.8 million in total cash, cash equivalents, and marketable securities. The company generated $804.2 million in net cash flows from operating activities for the first six months of 2013, indicating strong operational cash generation.

Yes, the company is involved in several legal proceedings, including patent litigations and a dispute with the Italian National Medicines Agency (AIFA) regarding TYSABRI pricing. While an agreement in principle was reached with AIFA, it is pending final approval. Additionally, there are ongoing investigations into sales and promotional practices and AMP submissions. Investors should monitor these developments as they could impact financial results.