Summary
Biogen Inc. reported a strong second quarter of 2019, with total revenues increasing by 7.8% year-over-year to $3.62 billion. This growth was driven by solid performance in its core Multiple Sclerosis (MS) franchise, particularly TECFIDERA, which saw a 5.3% increase in U.S. revenues, and continued strong growth from SPINRAZA for Spinal Muscular Atrophy (SMA), up 12.0% in U.S. revenues. The company also reported significant increases in biosimilar revenues (up 45.4%) and revenues from anti-CD20 therapeutic programs (up 17.5%). Net income attributable to Biogen Inc. surged by 72.5% to $1.49 billion, leading to a substantial increase in diluted earnings per share (EPS) to $7.85, up 87.8% from the prior year. This profitability was boosted by a notable decrease in total costs and expenses, primarily due to a significant reduction in R&D spending compared to the prior year, which included substantial charges related to a collaboration with Ionis Pharmaceuticals. Additionally, a lower effective tax rate contributed favorably to net income. Financially, Biogen maintained a strong liquidity position with approximately $4.3 billion in cash, cash equivalents, and marketable securities. The company continued its commitment to shareholder returns, repurchasing approximately $910 million of its common stock under its new $5.0 billion repurchase program during the quarter, in addition to completing its prior $3.5 billion repurchase program. Biogen also completed the acquisition of Nightstar Therapeutics plc for $847.6 million, strengthening its pipeline in ophthalmology with gene therapy assets.
Financial Highlights
54 data points| Revenue | $3.62B |
| Cost of Revenue | $476.30M |
| Gross Profit | $3.14B |
| SG&A Expenses | $587.60M |
| Operating Expenses | $1.66B |
| Operating Income | $1.96B |
| Interest Expense | $47.70M |
| Net Income | $1.49B |
| EPS (Basic) | $7.85 |
| EPS (Diluted) | $7.85 |
| Shares Outstanding (Basic) | 190.30M |
| Shares Outstanding (Diluted) | 190.40M |
Key Highlights
- 1Total revenues grew 7.8% to $3.62 billion, driven by strong product sales and collaboration revenues.
- 2Net income increased significantly by 72.5% to $1.49 billion, with diluted EPS rising 87.8% to $7.85.
- 3Product revenues saw a 4.5% increase to $2.88 billion, with TECFIDERA and SPINRAZA showing solid growth.
- 4Acquisition of Nightstar Therapeutics plc for $847.6 million closed on June 7, 2019, adding gene therapy assets in ophthalmology.
- 5The company repurchased approximately $910 million of its common stock in Q2 2019 under its new $5.0 billion share repurchase program.
- 6Research and development expenses decreased by 50.6% due to a strong prior year comparable period that included significant charges related to an Ionis Pharmaceuticals agreement.
- 7Proposed divestiture of Hillerød, Denmark manufacturing operations expected to close in Q3 2019, with an estimated loss on sale recognized in the quarter.