Common-Size Income Statement
Quarterly Data
Biogen Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
The financial performance from March 2017 through September 2022 is characterized by high gross margins, significant volatility in operational expenditures, and fluctuations in net profitability influenced by one-time events and shifting cost structures.
- Revenue Composition
- The primary revenue driver, net product sales, exhibited a gradual decline as a percentage of total revenue, moving from a peak of 85.75% in June 2017 to 78.22% by September 2022. This trend is offset by a steady increase in the contribution from anti-CD20 therapeutic programs, which grew from approximately 12% in 2017 to a peak of 16.85% in June 2022. Other revenue sources remained relatively low but showed intermittent volatility, specifically peaking at 11.07% in June 2020.
- Gross Profitability and Cost of Sales
- Gross profit margins remained consistently high, generally staying above 80% for the majority of the observed period. However, a significant contraction occurred between March 2021 and March 2022, where gross profit reached a period low of 70.22%. This decline correlates with a sharp increase in the cost of sales, which surged to 29.78% of revenue in March 2022, before normalizing back to 18.72% by September 2022.
- Operating Expense Trends
- Research and development (R&D) expenditures displayed extreme volatility. While typically ranging between 13% and 25% of revenue, a substantial spike occurred in December 2020, where R&D spending consumed 60.51% of total revenue. Selling, general, and administrative (SG&A) expenses showed a more consistent upward trajectory, increasing from an average of 14-17% in 2017 to approximately 22-28% in 2021 and 2022, suggesting an increase in the operational cost of maintaining market presence.
- Operational and Net Income Performance
- Income from operations experienced severe fluctuations, shifting from highs above 50% in 2019 to a deficit of -11.59% in December 2020. This instability is largely attributable to the aforementioned spikes in R&D and SG&A costs. Net income mirrored this volatility, with a notable low of -8.99% in December 2017 and a subsequent recovery. A significant anomaly is observed in September 2022, where net income reached 45.24%, bolstered heavily by a one-time gain on the sale of a building equivalent to 20.08% of revenue.
- Other Financial Impacts
- Amortization and impairment of acquired intangible assets were most impactful in June 2021, reaching 21.77% of revenue, whereas they remained negligible in most other quarters. Tax expenses were highly inconsistent, ranging from significant benefits to expenses exceeding 47% of revenue in a single quarter (December 2017), contributing further to the volatility of the bottom-line net income.
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