NASDAQ$BIIB

Biogen Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Biogen's operational performance was satisfactory, marked by advancements in its MS therapies, the leading SMA therapy, and the first approved therapy addressing Alzheimer's disease pathology. Positive data in depression and stroke were reported, and compassionate use access for tofersen was initiated.

Biogen reported a 25% decrease in total revenue compared to the prior year, with $2,775 million. GAAP diluted EPS was $2.99, and Non-GAAP diluted EPS was $5.68. The company received accelerated approval for ADUHELM and FDA Breakthrough Therapy designation for lecanemab.

  • Total revenue for the second quarter was $2,775 million, a 25% decrease year-over-year.
  • GAAP diluted EPS was $2.99, while Non-GAAP diluted EPS was $5.68.
  • Received accelerated approval for ADUHELM in the U.S. for Alzheimer's disease.
  • Advanced a diversified neuroscience pipeline with positive readouts in Phase 3 study in depression and Phase 2a study in stroke.

Headline financials

Total Revenue

$2.78B

Previous: $3.68B-24.6%
EPS (adj)

$5.68

Previous: $10.26-44.6%
GAAP Effective Tax Rate

-70.0%

Previous: 22.0%-418.2%
GAAP R&D Expense

$585M

Previous: $648M-9.7%
GAAP SG&A Expense

$637M

Previous: $555M+14.8%
Capital Expenditures

-$165M

Previous: -$255M+35.4%
Free Cash Flow

$284M

Previous: $1.29B-77.9%
Net Income

$449M

Previous: $1.54B-70.9%
Operating Income

$486M

Previous: $1.97B-75.4%
Gross Profit

$2.32B

Previous: $3.27B-29.2%
Cash & Equivalents

$1.18B

Previous: $1.87B-36.9%
Total Assets

$24.5B

Previous: $25.5B-4.1%
Stock-Based Comp

$54.1M

Previous: $48.1M+12.5%

Revenue & EPS history

Biogen · Revenue · Quarterly

$2.78B

Q2 2021-24.6%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Biogen updated its full year 2021 financial guidance, expecting total revenue between $10.65 to $10.85 billion and Non-GAAP diluted EPS between $17.50 to $19.00. Capital expenditures are projected to be $375 to $425 million. This guidance assumes moderate ADUHELM revenue and erosion of TECFIDERA and RITUXAN in the U.S.

Tailwinds

  • Total revenue is expected to be between $10.65 to $10.85 billion.
  • Non-GAAP diluted EPS is projected to be between $17.50 to $19.00.
  • The company expects to utilize a portion of the remaining share repurchase authorization of $3,550 million throughout 2021.
  • Assumes foreign exchange rates as of June 30, 2021, will remain in effect for the remainder of the year, net of hedging activities.
  • Capital expenditures are expected to be between $375 to $425 million.

Headwinds

  • Guidance continues to assume modest ADUHELM revenue in 2021, ramping thereafter.
  • Guidance also continues to assume erosion of TECFIDERA and RITUXAN in the U.S.
  • Decreased revenue from these high margin products to reduce its gross margin percentage compared to 2020.
  • Non-GAAP R&D expense is expected to be between $2.45 billion and $2.55 billion, an increase from prior guidance primarily due to an expected $125 million upfront payment in the third quarter of 2021 associated with our recently announced collaboration with InnoCare Pharma Limited (InnoCare).
  • Non-GAAP SG&A expense is expected to be between $2.6 billion and $2.7 billion, consistent with our previous guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

48%

34 / 71 earnings

Positive

+24.7%

Q3 2019

Best reaction

-19.6%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+2.1%+6.9%
Q4 2025+8.5%+3.2%-0.3%
Q3 2025+0.9%+1.0%+23.2%
Q1 2025-0.1%-3.5%+7.2%
Q4 2024-4.3%-1.5%+0.0%
Q3 2024-5.2%-5.4%-12.4%
Q2 2024-3.5%-6.1%-4.0%
Q1 2024+4.8%+11.6%+12.7%
Q4 2023-9.8%-10.5%-10.3%
Q3 2023-8.5%-9.4%-2.6%
Q2 2023-4.2%-4.2%-5.3%
Q1 2023-1.7%+3.8%+1.4%
Q4 2022-6.1%-3.7%-9.0%
Q3 2022+2.1%+3.5%+10.5%
Q2 2022-2.8%-5.8%-2.8%
Q1 2022+1.3%-6.6%-4.2%
Q4 2021-1.5%-1.1%-6.9%
Q3 2021+0.8%+0.7%-4.1%
Q2 2021+0.8%+3.4%+5.8%
Q1 2021-2.7%-0.9%+4.9%
Q4 2020-3.7%-3.2%-2.5%
Q3 2020-0.1%-3.9%-8.6%
Q2 2020-0.6%+2.1%-1.1%
Q1 2020-11.2%-7.8%-7.4%
Q4 2019-4.8%+0.3%+9.2%
Q3 2019+24.7%+28.9%+29.1%
Q2 2019+3.8%+2.5%-0.2%
Q1 2019-0.1%-0.4%-1.4%
Q4 2018-0.7%+0.3%-0.6%
Q3 2018-4.3%-4.9%+0.0%
Q2 2018+7.2%-5.0%-4.5%
Q1 2018+3.9%+6.7%+9.7%
Q4 2017+6.2%+1.8%-15.5%
Q3 2017-4.2%-6.3%-5.7%
Q2 2017+3.8%+1.0%+0.3%
Q1 2017+1.1%-2.0%-8.6%
Q4 2016+1.8%+1.5%+4.4%
Q3 2016+1.7%-2.0%+6.7%
Q2 2016+9.7%+9.4%+20.7%
Q1 2016+6.3%
Q4 2015+2.3%
Q3 2015+4.1%
Q2 2015-19.6%
Q1 2015-9.5%
Q4 2014+10.8%
Q3 2014-3.3%
Q2 2014+10.9%
Q1 2014-3.7%
Q4 2013+4.1%
Q3 2013+0.8%
Q2 2013-1.5%
Q1 2013+3.6%
Q4 2012+5.3%
Q3 2012-2.2%
Q2 2012+3.0%
Q1 2012+2.4%
Q4 2011+0.7%
Q3 2011-1.2%
Q2 2011-2.1%
Q1 2011+1.5%
Q4 2010-0.5%
Q3 2010+4.3%
Q2 2010+3.4%
Q1 2009-3.8%
Q1 2010-0.3%
Q4 2007+2.9%
Q3 2009-1.7%
Q3 2008-1.7%
Q4 2008-0.4%
Q2 2009-0.4%
Q2 2008-0.4%

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