10-QPeriod: Q1 FY2024

BIOGEN INC. Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 24, 2024For Securities:BIIB

Summary

Biogen Inc. (BIIB) reported a decrease in total revenue for the first quarter of 2024, down 7.0% year-over-year to $2.29 billion. This decline was primarily driven by a significant drop in contract manufacturing, royalty, and other revenue, which fell 38.5% to $184.6 million. Product revenue also saw a modest decrease of 2.9% to $1.71 billion, largely due to ongoing generic competition impacting Multiple Sclerosis (MS) revenues, which decreased by 4.4%, and a decrease in Rare Disease revenue by 4.4%. Despite the revenue challenges, the company managed to increase its net income to $393.4 million, a slight rise from $387.9 million in the prior year's quarter, resulting in diluted earnings per share of $2.70, up from $2.67. The company also demonstrated strong operational cash flow generation of $553.2 million.

Financial Highlights

47 data points
Beta

Revenue

$2.29B

76.3% Gross Margin

Net Income

$393.40M

17.2% Net Margin

EPS (Diluted)

$2.70

Total Assets

$26.57B

Cash & Equivalents

$1.07B

Free Cash Flow

$507.30M

Financial Statements
Beta
Revenue$2.29B
Cost of Revenue$542.20M
Gross Profit$1.75B
SG&A Expenses$581.50M
Operating Expenses$1.83B
Interest Expense$69.20M
Net Income$393.40M
EPS (Basic)$2.71
EPS (Diluted)$2.70
Shares Outstanding (Basic)145.20M
Shares Outstanding (Diluted)145.90M

Key Highlights

  • 1Total revenue declined 7.0% to $2.29 billion in Q1 2024, mainly due to lower contract manufacturing, royalty, and other revenue.
  • 2Product revenue decreased by 2.9% to $1.71 billion, impacted by generic competition in the Multiple Sclerosis (MS) segment.
  • 3Multiple Sclerosis (MS) revenue decreased by 4.4% ($49.3 million) due to generic competition for TECFIDERA and ongoing patient shifts to higher efficacy therapies.
  • 4Rare Disease revenue decreased by 4.4% ($19.4 million), primarily due to timing of SPINRAZA shipments outside the U.S. and modest impacts from competition and foreign currency exchange.
  • 5Net income attributable to Biogen Inc. increased slightly by 1.5% to $393.4 million.
  • 6Diluted earnings per share (EPS) increased to $2.70 from $2.67 in the prior year's quarter.
  • 7Operating cash flow remained robust at $553.2 million, an increase from $455.3 million in Q1 2023.

Frequently Asked Questions

The primary driver for the 7.0% decrease in total revenue for Q1 2024 was a significant decline in 'Contract manufacturing, royalty and other revenue,' which fell by 38.5%. This was partly offset by a smaller decrease in 'Product revenue' and 'Revenue from anti-CD20 therapeutic programs'.

MS revenue decreased by 4.4% ($49.3 million). This decline is primarily attributed to the impact of generic entrants for TECFIDERA in key markets and patients transitioning to newer, more effective therapies for other MS products. The company also noted the entrance of a TYSABRI biosimilar in the U.S. and EU as a future concern.

SKYCLARYS, acquired through the Reata acquisition, contributed $78.0 million in global revenue in Q1 2024, with $73.0 million from the U.S. and $5.0 million from the EU, where it received approval in February 2024. The company expects continued growth for SKYCLARYS.

Yes, Biogen repaid $400.0 million of its 2023 Term Loan during the first quarter of 2024, with $150.0 million related to the 364-day tranche and $250.0 million related to the three-year tranche. This resulted in a decrease in total borrowings.