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Mar 31, 2020

Biogen Q1 2020 Earnings Report

Reported strong financial results and progressed its pipeline, including progress toward the U.S. regulatory filing for aducanumab.

Key Takeaways

Biogen reported Q1 2020 revenues of $3.5 billion, a 1% increase compared to Q1 2019. GAAP diluted EPS increased by 13%, while Non-GAAP diluted EPS increased by 31%. The company is progressing with the U.S. regulatory filing for aducanumab and has entered a collaboration with Sangamo Therapeutics for gene regulation therapies.

Total revenues were $3,534 million, a 1% increase versus the first quarter of 2019.

GAAP net income and diluted earnings per share were $1,399 million and $8.08, respectively.

Non-GAAP net income and diluted EPS were $1,582 million and $9.14, respectively.

Biogen estimates that its first quarter product revenues benefitted by approximately $100 million attributed to accelerated sales due to the COVID-19 pandemic, primarily in Europe.

Total Revenue
$3.53B
Previous year: $3.49B
+1.3%
EPS
$9.14
Previous year: $6.98
+30.9%
Gross Profit
$3.08B
Previous year: $2.89B
+6.7%
Cash and Equivalents
$2.59B
Previous year: $2.24B
+15.5%
Free Cash Flow
$1.32B
Previous year: $1.33B
-1.1%
Total Assets
$26.1B
Previous year: $26.4B
-1.2%

Biogen

Biogen

Biogen Revenue by Segment

Biogen Revenue by Geographic Location

Forward Guidance

Biogen is continuing its frequent interactions with regulatory authorities including for aducanumab and is working on a case-by-case basis to continue safely advancing as many of its clinical trials as possible. While Biogen does expect there will be some impact to timelines for some of its clinical programs, it still expects the vast majority of the 10 remaining near-term readouts to occur before the end of 2021.

Positive Outlook

  • Continued operation of manufacturing facilities.
  • Working with organizations across its supply chain to maintain continuity.
  • Continuing frequent interactions with regulatory authorities including for aducanumab.
  • Working on a case-by-case basis to continue safely advancing as many of its clinical trials as possible.
  • Pursuing innovative approaches such as remote monitoring, remote patient visits, and supporting home infusions to mitigate the impact to its clinical trials.

Challenges Ahead

  • COVID-19 pandemic has created a challenging situation for people and companies throughout the world.
  • Magnitude and uncertainty surrounding this pandemic clearly introduce unanticipated and potentially unquantifiable risks to our business and results over the near-term.
  • Expect there will be some impact to timelines for some of its clinical programs.
  • Implementing policies and practices to safeguard employees and communities to reduce the spread of COVID-19, including asking almost all employees to work from home.
  • The company personally felt the painful impact of this global crisis.

Revenue & Expenses

Visualization of income flow from segment revenue to net income