Stock Analysis on Net
Stock Analysis on Net

Biogen Inc. (NASDAQ:BIIB)

This company has been moved to the archive! The financial data has not been updated since October 25, 2022.

Common-Size Income Statement

Biogen Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Product, net 80.56 79.53 79.15 80.93 84.36
Revenues from anti-CD20 therapeutic programs 15.10 14.71 15.93 14.72 12.70
Other 4.34 5.76 4.92 4.36 2.93
Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales, excluding amortization and impairment of acquired intangible assets -19.21 -13.43 -13.60 -13.50 -13.28
Gross profit 80.79% 86.57% 86.40% 86.50% 86.72%
Research and development -22.78 -29.68 -15.86 -19.31 -18.36
Selling, general and administrative -24.35 -18.63 -16.52 -15.66 -15.77
Amortization and impairment of acquired intangible assets -8.03 -3.46 -3.41 -5.55 -6.64
Collaboration profit sharing -0.07 -1.73 -1.68 -1.38 -0.91
Gain (loss) on divestiture of Hillerød, Denmark manufacturing operations 0.00 0.69 -0.38 0.00 0.00
Gain (loss) on fair value remeasurement of contingent consideration 0.46 0.64 0.44 0.09 -0.51
Acquired in-process research and development -0.16 -0.56 0.00 -0.84 -0.98
Restructuring charges 0.00 0.00 -0.01 -0.09 -0.01
Income from operations 25.87% 33.84% 48.98% 43.77% 43.54%
Interest income 0.10 0.31 0.83 0.84 0.64
Interest expense -2.31 -1.65 -1.30 -1.49 -2.04
Gain (loss) on investments, net -7.51 5.10 1.42 0.89 -0.30
Foreign exchange gains (losses), net -0.20 -0.08 -0.05 -0.07 0.05
Other, net -0.05 0.02 -0.33 -0.08 -0.11
Other income (expense), net -9.98% 3.70% 0.58% 0.08% -1.75%
Income before equity in income (loss) of investee and income tax expense 15.89% 37.54% 49.56% 43.85% 41.79%
Equity in income (loss) of investee, net of tax 0.32 0.04 -0.55 0.00 0.00
Income before income tax expense 16.21% 37.58% 49.01% 43.85% 41.79%
Income tax expense -0.48 -7.38 -8.05 -10.60 -20.03
Net income 15.73% 30.20% 40.96% 33.26% 21.75%
Net income attributable to noncontrolling interests, net of tax -1.56 -0.45 0.00 -0.32 -1.07
Net income attributable to Biogen Inc. 14.17% 29.76% 40.96% 32.93% 20.69%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial performance from 2017 to 2021 is characterized by a period of margin expansion peaking in 2019, followed by a notable contraction in profitability through 2021. While revenue streams remained relatively stable in composition, significant increases in operating expenses and non-operating losses contributed to a decline in net income margins.

Revenue Composition and Gross Profitability
Revenue streams remained consistent, with net product sales fluctuating between 79% and 84% and anti-CD20 therapeutic programs contributing between 12% and 16%. Gross profit margins remained highly stable at approximately 86% from 2017 to 2020. However, a contraction occurred in 2021, where gross profit fell to 80.79% due to a significant increase in the cost of sales, which rose to 19.21% of revenue compared to a historical average of approximately 13.5%.
Operating Expense Trends
Operating expenses exhibited an upward trend over the five-year period. Selling, general, and administrative (SG&A) expenses grew steadily from 15.77% of revenue in 2017 to 24.35% in 2021. Research and development (R&D) spending showed higher volatility, peaking at 29.68% of revenue in 2020 before settling at 22.78% in 2021. Additionally, amortization and impairment of acquired intangible assets spiked to 8.03% of revenue in 2021, more than doubling the levels seen in 2019 and 2020.
Operating Income and Non-Operating Impacts
Income from operations reached a peak of 48.98% of revenue in 2019 but experienced a sharp decline thereafter, falling to 25.87% by 2021. This decline was further exacerbated by non-operating items in 2021, specifically a significant loss on investments totaling 7.51% of revenue, contrasting with a gain of 5.10% in 2020. Consequently, income before income tax expense dropped from a high of 49.01% in 2019 to 16.21% in 2021.
Net Income and Tax Dynamics
Net income attributable to Biogen Inc. followed a bell-shaped trajectory, increasing from 20.69% in 2017 to a peak of 40.96% in 2019, before declining to 14.17% in 2021. This decline in net profitability was partially offset by a dramatic reduction in income tax expense as a percentage of revenue, which fell from 20.03% in 2017 to only 0.48% in 2021.

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