10-QPeriod: Q2 FY2024

BIOGEN INC. Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 1, 2024For Securities:BIIB

Summary

Biogen Inc. reported a slight increase in total revenue for the three months ended June 30, 2024, reaching $2,464.9 million, a 0.4% rise year-over-year. This was primarily driven by a 2.9% increase in product revenue, largely from the rare disease segment, which saw a significant boost from SKYCLARYS sales. However, revenue from contract manufacturing, royalty, and other sources declined by 31.7%. Diluted earnings per share decreased by 1.7% to $4.00, reflecting higher amortization costs related to the Reata acquisition's intangible assets and a substantial increase in 'Other (income) expense, net,' which more than offset a decrease in R&D and cost of sales. The company also announced the completion of the HI-Bio acquisition for $1.15 billion, funded by existing cash, and the sale of a priority review voucher for $103.0 million, contributing to a substantial increase in cash and cash equivalents to $1.9 billion.

Financial Highlights

48 data points
Beta

Revenue

$2.46B

77.8% Gross Margin

Net Income

$583.60M

23.7% Net Margin

EPS (Diluted)

$4.00

Total Assets

$26.80B

Cash & Equivalents

$1.91B

Free Cash Flow

$592.30M

Financial Statements
Beta
Revenue$2.46B
Cost of Revenue$546.00M
Gross Profit$1.92B
SG&A Expenses$553.80M
Operating Expenses$1.77B
Interest Expense$61.30M
Net Income$583.60M
EPS (Basic)$4.01
EPS (Diluted)$4.00
Shares Outstanding (Basic)145.60M
Shares Outstanding (Diluted)145.90M

Key Highlights

  • 1Total revenue for Q2 2024 was $2,464.9 million, a 0.4% increase from Q2 2023, driven by product revenue growth.
  • 2Product revenue increased by 2.9% to $1,899.6 million, with the rare disease segment showing strong growth (+21.9%) due to SKYCLARYS, while the Multiple Sclerosis segment saw a 4.9% decline.
  • 3Diluted earnings per share (EPS) decreased by 1.7% to $4.00, impacted by higher amortization expenses and increased 'Other (income) expense, net'.
  • 4Cost of sales decreased by 7.9% and R&D expenses decreased by 12.0%, partly due to cost-reduction measures and portfolio prioritization.
  • 5Cash and cash equivalents significantly increased to $1,908.9 million from $1,049.9 million at the end of 2023, bolstered by operating cash flow and proceeds from asset sales.
  • 6Biogen completed the acquisition of HI-Bio for $1.15 billion, expanding its pipeline in immunology.
  • 7The company sold a priority review voucher for $103.0 million, generating a net gain of $88.6 million.

Frequently Asked Questions

Biogen's total revenue increased by 0.4% to $2,464.9 million in Q2 2024, primarily driven by a 2.9% increase in product revenue. The rare disease segment, boosted by SKYCLARYS sales, was a key contributor to this growth, offsetting a decline in the Multiple Sclerosis segment.

Despite a slight increase in revenue, Biogen's diluted EPS decreased by 1.7% to $4.00. This was mainly due to a significant increase in amortization expenses related to acquired intangible assets from the Reata acquisition, and a substantial rise in 'Other (income) expense, net', which together more than offset the cost savings achieved in R&D and cost of sales.

Biogen completed the acquisition of HI-Bio for $1.15 billion, funded by cash on hand, which is expected to bolster its immunology pipeline. Additionally, the company sold a priority review voucher for $103.0 million, contributing to a substantial increase in its cash and cash equivalents to $1.9 billion as of June 30, 2024. These transactions demonstrate active portfolio management.

The MS segment continues to face challenges, with global MS revenue declining by 4.9% in Q2 2024. This is attributed to increased competition, patient transitions to higher efficacy therapies for its interferon products, and competition for TYSABRI. Biogen anticipates a continued decline in MS revenue due to ongoing competition and the introduction of biosimilars.