Summary
Biogen Inc. reported strong financial performance for the nine months ended September 30, 2015, with total revenues increasing to $7.92 billion, up from $7.06 billion in the prior year period. This growth was primarily driven by a significant increase in product revenues, particularly from TECFIDERA, which saw a 19.1% rise in the third quarter. Net income attributable to Biogen Inc. also saw a substantial increase, reaching $2.72 billion for the nine-month period, compared to $2.05 billion in the same period last year. Operationally, the company is actively managing its pipeline and portfolio, including strategic acquisitions like Convergence Pharmaceuticals for neuropathic pain and significant debt financing through the issuance of $6.0 billion in senior unsecured notes. Biogen also announced a corporate restructuring involving pipeline program terminations and an 11% workforce reduction, aimed at reallocating resources to high-potential candidates and commercial activities, with an expected annual operating expense reduction of approximately $250 million. The company's liquidity remains strong, with total cash, cash equivalents, and marketable securities reaching $7.79 billion as of September 30, 2015. Biogen is also actively returning capital to shareholders, having repurchased approximately 9.7 million shares of common stock for $2.99 billion during the nine months ended September 30, 2015.
Financial Highlights
53 data points| Revenue | $2.78B |
| Cost of Revenue | $310.00M |
| Gross Profit | $2.47B |
| SG&A Expenses | $477.80M |
| Operating Expenses | $1.41B |
| Operating Income | $1.37B |
| Interest Expense | $15.60M |
| Net Income | $965.60M |
| EPS (Basic) | $4.16 |
| EPS (Diluted) | $4.15 |
| Shares Outstanding (Basic) | 232.20M |
| Shares Outstanding (Diluted) | 232.60M |
Key Highlights
- 1Total revenues increased by 10.6% to $2.78 billion for the third quarter of 2015 compared to the prior year period.
- 2Product revenues, net, rose by 13.0% to $2.39 billion in Q3 2015, largely driven by TECFIDERA's strong performance.
- 3Net income attributable to Biogen Inc. for the nine months ended September 30, 2015, was $2.72 billion, a significant increase from $2.05 billion in the prior year.
- 4The company completed the acquisition of Convergence Pharmaceuticals for neuropathic pain indications for $474.6 million.
- 5Biogen issued $6.0 billion in senior unsecured notes in September 2015 to strengthen its financial position.
- 6A corporate restructuring was announced, including workforce reductions and pipeline program terminations, expected to save $250 million annually.
- 7Shareholders' equity decreased slightly to $10.57 billion as of September 30, 2015, from $10.81 billion at the end of 2014, primarily due to significant share repurchases.