10-QPeriod: Q3 FY2020

BIOGEN INC. Quarterly Report for Q3 Ended Sep 30, 2020

Filed October 21, 2020For Securities:BIIB

Summary

Biogen Inc. reported total revenues of $3.38 billion for the third quarter of 2020, a decrease of 6.2% compared to the same period in 2019, primarily driven by lower product revenues. Product revenues fell by 7.1% to $2.69 billion, mainly due to a decline in TECFIDERA sales in the U.S. following the introduction of generic competition. Spinraza sales also saw a decrease. Research and development expenses significantly increased by 111.1% to $1.14 billion, largely due to a substantial charge related to the collaboration with Denali Therapeutics. Despite revenue headwinds, the company completed the submission of a Biologics License Application (BLA) for aducanumab to the FDA and continues to advance its pipeline. The company ended the quarter with $4.59 billion in cash, cash equivalents, and marketable securities. Biogen also repurchased approximately $1.3 billion of its common stock during the quarter, completing its December 2019 share repurchase program. A new $5.0 billion repurchase program was authorized in October 2020. The company's financial position remains solid, though it faces challenges from increased competition and R&D investments.

Financial Highlights

53 data points
Beta

Revenue

$3.38B

86.7% Gross Margin

Net Income

$701.50M

20.8% Net Margin

EPS (Diluted)

$4.46

Total Assets

$24.93B

Cash & Equivalents

$2.22B

Free Cash Flow

$1.10B

Financial Statements
Beta
Revenue$3.38B
Cost of Revenue$449.10M
Gross Profit$2.93B
SG&A Expenses$573.10M
Operating Expenses$2.29B
Operating Income$1.09B
Interest Expense$56.30M
Net Income$701.50M
EPS (Basic)$4.47
EPS (Diluted)$4.46
Shares Outstanding (Basic)156.90M
Shares Outstanding (Diluted)157.20M

Key Highlights

  • 1Total revenues decreased by 6.2% year-over-year to $3.38 billion for Q3 2020.
  • 2Product revenues declined 7.1% to $2.69 billion, primarily impacted by generic competition for TECFIDERA in the U.S.
  • 3Research and Development expenses surged by 111.1% to $1.14 billion, largely due to a $601.3 million charge related to the Denali Therapeutics collaboration.
  • 4Diluted earnings per share attributable to Biogen Inc. decreased by 46.8% to $4.46 in Q3 2020 compared to $8.39 in Q3 2019.
  • 5The company submitted a Biologics License Application (BLA) for aducanumab to the FDA, which was accepted for Priority Review.
  • 6Cash, cash equivalents, and marketable securities stood at $4.59 billion as of September 30, 2020.
  • 7Biogen repurchased $1.3 billion of its common stock during Q3 2020 and authorized a new $5.0 billion share repurchase program in October 2020.

Frequently Asked Questions

The primary reason for the decline in Biogen's Q3 2020 revenue was the introduction of generic competition for TECFIDERA in the U.S. market, which significantly impacted TECFIDERA demand and pricing, along with a decrease in SPINRAZA sales.

The significant increase in R&D expenses for Q3 2020, up 111.1% year-over-year, was primarily driven by a substantial charge of $601.3 million related to the collaboration and license agreement entered into with Denali Therapeutics Inc. in August 2020.

Biogen completed the submission of a Biologics License Application (BLA) for aducanumab to the FDA in July 2020, which was accepted for Priority Review with a target action date of March 7, 2021. The company also initiated a global re-dosing clinical study for aducanumab.

Biogen ended the quarter with $4.59 billion in cash, cash equivalents, and marketable securities. The company repurchased $1.3 billion of its common stock during the third quarter of 2020, completing its December 2019 share repurchase program, and subsequently authorized a new $5.0 billion share repurchase program in October 2020.