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Sep 30, 2020

Biogen Q3 2020 Earnings Report

Biogen reported solid performance despite facing TECFIDERA® generics launch and advanced its pipeline with Denali Therapeutics collaboration.

Key Takeaways

Biogen reported Q3 2020 results with a revenue of $3,376 million, a GAAP diluted EPS of $4.46, and a Non-GAAP diluted EPS of $8.84. The company is progressing with aducanumab and has a new share repurchase authorization of $5.0 billion.

Third quarter revenue totaled $3,376 million, a 6% decrease compared to Q3 2019.

GAAP diluted EPS was $4.46, while Non-GAAP diluted EPS reached $8.84.

FDA accepted Biologics License Application for aducanumab with Priority Review.

A new collaboration with Denali Therapeutics was established to bolster the pipeline for Parkinson’s disease.

Total Revenue
$3.38B
Previous year: $3.6B
-6.2%
EPS
$8.84
Previous year: $9.17
-3.6%
Effective Tax Rate
25%
Previous year: 12%
+108.3%
GAAP R&D
$1.14B
GAAP SG&A
$573M
Gross Profit
$2.93B
Previous year: $3.17B
-7.7%
Cash and Equivalents
$3.58B
Previous year: $2.34B
+52.7%
Free Cash Flow
$1.1B
Previous year: $1.6B
-31.6%
Total Assets
$24.9B
Previous year: $27.5B
-9.3%

Biogen

Biogen

Biogen Revenue by Segment

Biogen Revenue by Geographic Location

Forward Guidance

Biogen updated its full year 2020 financial guidance to reflect the impact of TECFIDERA generic entrants.

Positive Outlook

  • Full Year Revenue to be approximately $13.2 billion to $13.4 billion.
  • Full Year Non-GAAP diluted EPS to be between $32.50 and $33.50.

Challenges Ahead

  • Assumes significant erosion of TECFIDERA in the fourth quarter of 2020.
  • Full Year GAAP diluted EPS to be between $25.50 and $26.50.
  • Guidance does not include potential impacts from new acquisitions or large business development transactions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income