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Jun 30, 2020

Biogen Q2 2020 Earnings Report

Reported strong financial results and completed the BLA submission for aducanumab.

Key Takeaways

Biogen reported Q2 2020 revenues of $3.7 billion, a 2% increase compared to Q2 2019. GAAP diluted EPS increased 22% to $9.59, while Non-GAAP diluted EPS increased 12% to $10.26. The company completed the submission of the BLA for aducanumab in Alzheimer's disease in the U.S.

Total revenues were $3,682 million, a 2% increase versus the second quarter of 2019.

GAAP net income and diluted earnings per share (EPS) attributable to Biogen Inc. were $1,542 million and $9.59, respectively.

Non-GAAP net income and diluted EPS attributable to Biogen Inc. were $1,651 million and $10.26, respectively.

Biogen completed the submission of a BLA to the FDA for aducanumab as a treatment for Alzheimer’s disease.

Total Revenue
$3.68B
Previous year: $3.62B
+1.8%
EPS
$10.3
Previous year: $9.15
+12.1%
Effective Tax Rate
22%
Previous year: 14%
+57.1%
GAAP R&D
$648M
Previous year: $485M
+33.6%
GAAP SG&A
$555M
Previous year: $588M
-5.6%
Gross Profit
$3.27B
Previous year: $3.14B
+4.1%
Cash and Equivalents
$4.33B
Previous year: $1.72B
+151.1%
Free Cash Flow
$1.84B
Previous year: $1.78B
+3.7%
Total Assets
$25.5B
Previous year: $26.3B
-3.0%

Biogen

Biogen

Biogen Revenue by Segment

Biogen Revenue by Geographic Location

Forward Guidance

Biogen provided an update to its full year 2020 financial guidance.

Positive Outlook

  • Revenue is expected to be approximately $13.8 billion to $14.2 billion.
  • GAAP and Non-GAAP R&D expense is expected to be approximately 16% to 17% of total revenues.
  • GAAP and Non-GAAP SG&A expense is expected to be approximately 17.5% to 18.5% of total revenues.
  • GAAP tax rate is expected to be approximately 18.5% to 19.5%.
  • Non-GAAP tax rate is expected to be approximately 18% to 19%.

Challenges Ahead

  • GAAP diluted EPS is expected to be between $32.00 and $34.00.
  • Non-GAAP diluted EPS is expected to be between $34.00 and $36.00.
  • This financial guidance does not include any operational impact from the potential entry of generic versions of TECFIDERA in the U.S. in 2020.
  • This financial guidance does not include any impact from potential acquisitions or large business development transactions, as both are hard to predict.
  • Biogen may incur charges, realize gains or losses, or experience other events or circumstances in 2020 that could cause actual results to vary from this financial guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income