NASDAQ$BIIB

Biogen Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to generic entry for TECFIDERA, while making progress in pipeline development and strategic collaborations.

Biogen reported Q4 2020 revenue of $2,853 million and GAAP EPS of $2.32. The company is awaiting regulatory decision on aducanumab for Alzheimer's disease and anticipates a financial reset in 2021 due to TECFIDERA generics.

  • Fourth quarter total revenues were $2,853 million, a 22% decrease versus the prior year.
  • Fourth quarter GAAP net income and diluted earnings per share (EPS) attributable to Biogen Inc. were $358 million and $2.32, respectively.
  • Fourth quarter Non-GAAP net income and diluted EPS attributable to Biogen Inc. were $706 million and $4.58, respectively.
  • Aducanumab for Alzheimer’s disease currently under regulatory review in the U.S., E.U., and Japan with PDUFA date extended to June 7, 2021, in U.S.

Headline financials

Total Revenue

$2.85B

Previous: $3.67B-22.3%
EPS (adj)

$4.58

Previous: $8.34-45.1%
GAAP Effective Tax Rate

3.8%

Previous: 16.0%-76.3%
GAAP R&D Expense

$1.73B

Previous: $692M+149.4%
GAAP SG&A Expense

$806M

Previous: $665M+21.2%
Capital Expenditures

$86M

Previous: $110M-22.1%
Free Cash Flow

-$453M

Previous: $1.96B-123.1%
Net Income

$358M

Previous: $1.44B-75.1%
Operating Income

-$331M

Previous: $1.78B-118.6%
Gross Profit

$2.36B

Previous: $3.22B-26.7%
Cash & Equivalents

$1.33B

Previous: $4.48B-70.3%
Total Assets

$24.6B

Previous: $27.2B-9.6%
Stock-Based Comp

$49M

Previous: $38.4M+27.6%

Revenue & EPS history

Biogen · Revenue · Quarterly

$2.85B

Q4 2020-22.3%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Biogen expects full year 2021 revenue to be between $10.45 billion and $10.75 billion, Non-GAAP diluted EPS to be between $17.00 and $18.50, and capital expenditures to be between $375 million and $425 million.

Tailwinds

  • Assumes aducanumab will be approved in the U.S. by June 7, 2021.
  • Expects an immediate launch of aducanumab with modest revenue in 2021, ramping thereafter.
  • Anticipates utilizing a portion of the remaining share repurchase authorization of $4.6 billion throughout 2021.
  • Expects Non-GAAP R&D expense to be between $2.35 billion and $2.45 billion.
  • Estimates Non-GAAP SG&A expense to be between $2.6 billion and $2.7 billion, including support for the potential launch of aducanumab.

Headwinds

  • Expects a sharp decline of TECFIDERA in the U.S. during the first half of 2021.
  • Anticipates significant erosion of RITUXAN in the U.S.
  • Financial guidance assumes foreign exchange rates as of December 31, 2020, will remain in effect for the year, net of hedging activities.
  • Guidance does not include any impact from potential acquisitions or large business development transactions.
  • Guidance does not include any impact of potential tax or healthcare reform.

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 Q4 2020

Historical avgQ4 2020

+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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