Biogen Inc. (BIIB) Bundle
A Brief History of Biogen
Biogen Inc. (NASDAQ: BIIB) has a rich history in the biotechnology sector, marked by significant milestones and advancements in the treatment of neurological diseases. As of 2024, Biogen continues to be a leader in the development of innovative therapies, particularly for multiple sclerosis (MS) and rare diseases.
Recent Financial Performance
In the third quarter of 2024, Biogen reported total revenue of approximately $2.5 billion, reflecting a decrease of $64.5 million or 2.5% compared to the same period in 2023. This decline was primarily driven by decreased demand in key product lines.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $2.5 billion | $2.564 billion | -2.5% |
| Net Income | $388.5 million | $(68.1 million) | +666.0% |
| Diluted Earnings Per Share | $2.66 | $(0.47) | +666.0% |
Product Revenue Breakdown
Biogen's product revenue for Q3 2024 experienced a net decrease of $35.8 million or 2.0%. Specifically, revenue from MS products declined by $105.1 million or 9.1%, while revenue from rare diseases increased by $44.9 million or 10.0%.
| Product Category | Q3 2024 Revenue | Change |
|---|---|---|
| Multiple Sclerosis (MS) | $1.05 billion | -9.1% |
| Rare Diseases | $490 million | +10.0% |
| Other Products | $350 million | - |
Research and Development Investments
In 2024, Biogen continued its commitment to R&D with total expenses of approximately $542.7 million, a decrease of 26.3% from 2023. This reduction aligns with the company's strategic initiatives to streamline operations and prioritize high-impact projects.
Cash Flow and Liquidity
As of September 30, 2024, Biogen reported cash and cash equivalents of approximately $1.7 billion, up from $1.0 billion at the end of 2023. The increase was largely due to cash generated from operations amounting to $2.1 billion for the nine months ended September 30, 2024.
| Liquidity Metrics | Sept 30, 2024 | Dec 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $1.7 billion | $1.0 billion |
| Net Cash Flow from Operations | $2.1 billion | - |
Key Acquisitions and Strategic Moves
In July 2024, Biogen completed the acquisition of HI-Bio for $1.15 billion, funded through cash reserves. This acquisition is part of Biogen's strategy to strengthen its portfolio in rare neurological diseases.
Additionally, Biogen realized a gain of approximately $88.6 million from the sale of a priority review voucher in April 2024, further enhancing its financial position.
Biogen's ongoing focus on innovation, strategic acquisitions, and efficient cost management continues to position the company for future growth and resilience in the dynamic biotechnology landscape.
A Who Owns Biogen Inc. (BIIB)
Major Shareholders
As of 2024, the ownership structure of Biogen Inc. (BIIB) is characterized by a mix of institutional and individual investors. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Number of Shares Owned | Type of Shareholder |
|---|---|---|---|
| The Vanguard Group, Inc. | 8.1% | 19.2 million shares | Institutional |
| BlackRock, Inc. | 7.5% | 17.6 million shares | Institutional |
| State Street Corporation | 4.5% | 10.6 million shares | Institutional |
| FMR LLC (Fidelity) | 4.2% | 9.8 million shares | Institutional |
| Geode Capital Management, LLC | 2.9% | 6.8 million shares | Institutional |
| Other Institutional Investors | 30.0% | 70.4 million shares | Institutional |
| Individual Investors | 19.8% | 46.5 million shares | Individual |
| Insiders (Executives & Directors) | 1.5% | 3.5 million shares | Insider |
Insider Ownership
Insider ownership consists of shares held by Biogen's executives and board members. As of 2024, insiders hold approximately 1.5% of the total shares, amounting to about 3.5 million shares. This includes the holdings of the CEO and other key executives.
Market Capitalization
As of the end of September 2024, Biogen's market capitalization was approximately $236 billion, reflecting the overall valuation of the company based on its stock price and total shares outstanding.
Recent Stock Performance
The stock price of Biogen Inc. has experienced fluctuations in 2024, with a year-to-date high of $180 and a low of $130. As of September 30, 2024, the stock was trading at approximately $162, indicating a moderate performance within the biotechnology sector.
Share Repurchase Program
Biogen has a share repurchase program authorized in 2020, allowing for the repurchase of up to $5 billion of its common stock. As of September 30, 2024, approximately $2.1 billion remains available under this program. No shares were repurchased during the three and nine months ended September 30, 2024.
Ownership Trends
Institutional ownership has seen a gradual increase, currently comprising over 60% of total shares. This trend reflects a growing confidence among institutional investors in Biogen's long-term prospects, especially following significant product launches and acquisitions.
Biogen Inc. (BIIB) Mission Statement
Biogen Inc. is a global biopharmaceutical company focused on discovering, developing, and delivering innovative therapies for people living with serious and complex diseases worldwide. The company's mission emphasizes a commitment to advancing the treatment landscape for neurological and rare diseases through a robust pipeline and strategic acquisitions.
Financial Overview
As of September 30, 2024, Biogen's financial performance is highlighted by the following key metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Total Revenue | $2,465.8 million | $2,530.3 million | Decrease of $64.5 million (2.5%) |
| Net Income | $388.5 million | $(68.1) million | Increase of $456.6 million |
| Diluted EPS | $2.66 | $(0.47) | Increase of $3.13 (666.0%) |
| Product Revenue, Net | $1,769.4 million | $1,805.2 million | Decrease of $35.8 million (2.0%) |
| Research and Development Expenses | $542.7 million | $736.3 million | Decrease of $193.6 million (26.3%) |
| Cash and Cash Equivalents | $1,699.2 million | $1,049.9 million | Increase of $649.3 million |
Product Portfolio and Market Focus
Biogen's marketed products include:
- TECFIDERA
- VUMERITY
- AVONEX
- PLEGRIDY
- TYSABRI
- FAMPYRA
- SPINRAZA
- SKYCLARYS
- QALSODY
- FUMADERM
As of 2024, the company has also focused on expanding its offerings in rare diseases, particularly following the acquisition of Reata Pharmaceuticals, which brought SKYCLARYS into its portfolio.
Recent Developments
In July 2024, Biogen completed the acquisition of HI-Bio for approximately $1.15 billion, with potential future payments of up to $650 million based on development and regulatory milestones. This acquisition aims to enhance Biogen's capabilities in immunology and rare disease treatment.
Biogen's revenue from rare disease products reported significant growth, with global SKYCLARYS revenue reaching $280.3 million in 2024, supported by a strong launch in the U.S. and E.U.
Market Challenges
Despite the growth in certain areas, Biogen faces challenges in its multiple sclerosis (MS) segment, with revenue decreasing by $105.1 million (9.1%) due to increased competition and pricing pressures. The total revenue from MS products was significantly impacted by a shift in patient preference towards higher efficacy therapies.
Outlook
Biogen anticipates continued growth in its rare disease segment, particularly as it expands the availability of SKYCLARYS. However, it projects a decline in global SPINRAZA revenue, expecting a decrease in the high single digits for the upcoming periods.
Conclusion
Biogen's mission and strategic focus remain on addressing the unmet needs of patients with serious and complex diseases through innovation and strategic partnerships. The company's financial performance as of 2024 reflects a commitment to operational efficiency and growth in targeted therapeutic areas.
How Biogen Inc. (BIIB) Works
Overview of Operations
As of 2024, Biogen Inc. (BIIB) focuses on developing therapies for neurological diseases, particularly Multiple Sclerosis (MS) and rare diseases. The company operates through various segments, including product sales, royalties from collaborations, and contract manufacturing.
Financial Performance
For the three months ended September 30, 2024, Biogen reported total revenue of $2,465.8 million, a decrease of $64.5 million or 2.5% compared to the same period in 2023. The breakdown of revenue is as follows:
| Revenue Source | 2024 (in millions) | 2023 (in millions) | $ Change | % Change |
|---|---|---|---|---|
| Product Revenue | 1,769.4 | 1,805.2 | (35.8) | (2.0) |
| Anti-CD20 Therapeutic Programs | 446.2 | 420.9 | 25.3 | 6.0 |
| Contract Manufacturing, Royalty, and Other Revenue | 250.2 | 304.2 | (54.0) | (17.8) |
| Total Revenue | 2,465.8 | 2,530.3 | (64.5) | (2.5) |
Product Revenue Breakdown
Product revenue for the third quarter of 2024 is categorized by therapeutic area:
| Therapeutic Area | U.S. Revenue (in millions) | Rest of World Revenue (in millions) | Total Revenue (in millions) | % Change |
|---|---|---|---|---|
| Multiple Sclerosis | 546.0 | 507.9 | 1,053.9 | (9.1) |
| Rare Disease | 240.4 | 254.4 | 494.8 | 10.0 |
| Biosimilars | 4.3 | 192.3 | 196.6 | 1.2 |
| Other | 22.3 | 1.8 | 24.1 | nm |
| Total Product Revenue | 813.0 | 956.4 | 1,769.4 | (2.0) |
Expenses
Biogen's total costs and expenses for the third quarter of 2024 were $2,014.8 million, a decrease of $656.7 million or 24.6% compared to the same period in 2023. The breakdown of expenses is as follows:
| Expense Type | 2024 (in millions) | 2023 (in millions) | $ Change | % Change |
|---|---|---|---|---|
| Cost of Sales | 638.7 | 659.6 | (20.9) | (3.2) |
| Research and Development | 542.7 | 736.3 | (193.6) | (26.3) |
| Selling, General and Administrative | 588.4 | 788.2 | (199.8) | (25.3) |
| Amortization and Impairment | 130.3 | 60.9 | 69.4 | 114.0 |
| Total Costs and Expenses | 2,014.8 | 2,671.5 | (656.7) | (24.6) |
Net Income
For the three months ended September 30, 2024, Biogen reported a net income of $388.5 million, compared to a net loss of $68.1 million in the same period of 2023. The diluted earnings per share increased to $2.66 from a loss of $0.47 in the previous year.
Cash Flow and Liquidity
As of September 30, 2024, Biogen had cash and cash equivalents totaling approximately $1.7 billion, an increase from $1.0 billion at the end of 2023. The company generated approximately $2.1 billion of net cash flow from operations for the nine months ended September 30, 2024.
Recent Developments
In July 2024, Biogen completed the acquisition of HI-Bio for $1.15 billion, funded through cash on hand. This acquisition is part of Biogen's strategy to enhance its portfolio in rare diseases.
Market Dynamics
Biogen continues to face challenges in the MS segment due to increasing competition and pricing pressures. The introduction of biosimilars has impacted the sales of key products like TYSABRI. However, the company expects growth in the rare disease segment, particularly from SKYCLARYS, which generated $280.3 million in revenue in 2024.
How Biogen Inc. (BIIB) Makes Money
Revenue Streams
Biogen Inc. generates revenue primarily through the sale of pharmaceutical products, including therapies for multiple sclerosis (MS) and rare diseases, along with revenue from anti-CD20 therapeutic programs and contract manufacturing.
Product Revenue
For the nine months ended September 30, 2024, Biogen reported total product revenue of $5,380.9 million, a slight decrease of $33.4 million or 0.6% compared to the same period in 2023. The breakdown of product revenue is as follows:
| Product Category | U.S. Revenue (in millions) | Rest of World Revenue (in millions) | Total Revenue (in millions) | % of Total Revenue |
|---|---|---|---|---|
| Multiple Sclerosis | $1,631.6 | $1,648.0 | $3,279.6 | 60.9% |
| Rare Disease | $240.4 | $254.4 | $494.8 | 28.0% |
| Biosimilars | $4.3 | $192.3 | $196.6 | 11.1% |
| Other | $22.3 | $1.8 | $24.1 | 1.3% |
Multiple Sclerosis (MS) Revenue
MS revenue totaled $3,279.6 million for the nine months ended September 30, 2024, reflecting a decline of $213.9 million or 6.1% from the previous year. This decline was primarily attributed to increased competition and pricing pressures. The U.S. MS revenue was $1,631.6 million, while rest of the world revenue was $1,648.0 million.
Rare Disease Revenue
In contrast, rare disease revenue increased by $44.9 million or 10.0% year-over-year, totaling $494.8 million for the nine months ended September 30, 2024. This growth was driven by strong sales of SKYCLARYS, which generated $280.3 million in 2024, following its approval and market launch.
Revenue from Anti-CD20 Therapeutic Programs
Biogen's revenue from anti-CD20 therapeutic programs was $1,284.7 million for the nine months ended September 30, 2024. This segment includes:
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Royalty Revenue on OCREVUS | $346.8 | $319.1 |
| Biogen’s Share of Pre-tax Profits (RITUXAN, GAZYVA, LUNSUMIO) | $94.8 | $98.9 |
| Other Revenue from Anti-CD20 Programs | $4.6 | $2.9 |
| Total Revenue from Anti-CD20 Programs | $446.2 | $420.9 |
Contract Manufacturing and Other Revenue
Contract manufacturing, royalty, and other revenue decreased significantly to $555.6 million for the nine months ended September 30, 2024, down from $781.2 million in 2023, representing a decrease of $225.6 million or 28.9%.
Cost Structure and Profitability
For the nine months ended September 30, 2024, Biogen reported total costs and expenses of $5,606.7 million, a decrease of $837.4 million or 13.0% from the previous year. Key expenses included:
| Expense Category | Amount (in millions) |
|---|---|
| Cost of Sales | $1,726.9 |
| Research and Development | $1,509.5 |
| Selling, General and Administrative | $1,723.7 |
| Amortization and Impairment of Acquired Intangible Assets | $295.5 |
Net Income and Earnings Per Share
Net income attributable to Biogen Inc. for the nine months ended September 30, 2024, was $1,365.5 million, compared to $911.4 million for the same period in 2023. Diluted earnings per share increased to $9.35 from $6.26 in the previous year.
Liquidity and Cash Flow
As of September 30, 2024, Biogen had cash and cash equivalents totaling approximately $1.7 billion, up from approximately $1.0 billion at the end of 2023. The company generated approximately $2.1 billion in net cash flow from operations for the nine months ended September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Biogen Inc. (BIIB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Biogen Inc. (BIIB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Biogen Inc. (BIIB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.