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Sep 30, 2023

Biogen Q3 2023 Earnings Report

Biogen reported mixed results with revenue increasing slightly and non-GAAP EPS decreasing, while making progress in Alzheimer's disease treatment and strategic acquisitions.

Key Takeaways

Biogen reported a slight increase in revenue for Q3 2023, alongside a GAAP diluted EPS loss. However, the company highlighted advancements in its Alzheimer's disease program with LEQEMBI and the acquisition of Reata Pharmaceuticals. The implementation of the "Fit for Growth" program is expected to drive bottom-line growth.

Total revenue increased slightly to $2,530 million.

GAAP diluted EPS was $(0.47), while Non-GAAP diluted EPS was $4.36.

Significant progress made in Alzheimer's disease treatment with LEQEMBI launch and tau-directed ASO development.

Acquisition of Reata Pharmaceuticals completed, expected to provide near-term financial contribution.

Total Revenue
$2.53B
Previous year: $2.51B
+0.9%
EPS
$4.36
Previous year: $4.77
-8.6%
GAAP R&D
$736M
Previous year: $549M
+34.1%
GAAP SG&A
$788M
Previous year: $563M
+39.9%
Gross Profit
$1.87B
Previous year: $2.04B
-8.3%
Cash and Equivalents
$2.29B
Previous year: $4.91B
-53.4%
Free Cash Flow
$518M
Previous year: $602M
-14.0%
Total Assets
$28.2B
Previous year: $24.9B
+13.4%

Biogen

Biogen

Biogen Revenue by Segment

Biogen Revenue by Geographic Location

Forward Guidance

Biogen updated its full year 2023 financial guidance to reflect the acquisition of Reata, regulatory approval for ZURZUVAE, and changes in LEQEMBI expense presentation. The company expects a low-single digit percentage decline in total revenue and Non-GAAP diluted EPS between $14.50 and $15.00.

Positive Outlook

  • Acquisition of Reata Pharmaceuticals.
  • Regulatory approval for ZURZUVAE in PPD.
  • Low-single digit percentage decline in total revenue.
  • Non-GAAP diluted EPS between $14.50 and $15.00.
  • Foreign exchange rates as of September 30, 2023, will remain in effect for the remainder of the year, net of hedging activities.

Challenges Ahead

  • Potential acquisitions or large business development transactions.
  • Pending and future litigation.
  • Potential tax or healthcare reform.
  • Company may incur charges, realize gains or losses, or experience other events or circumstances in 2023 that could cause any of these assumptions to change and/or actual results to vary from this financial guidance.
  • Impact of items such as the transaction, integration, and certain other costs related to acquisitions or large business development transactions; unusual gains and losses; potential future asset impairments; gains and losses from our equity security investments; and the ultimate outcome of pending or future significant litigation without unreasonable effort.

Revenue & Expenses

Visualization of income flow from segment revenue to net income