Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Biogen Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Product, net	8,846,900)	10,692,200)	11,379,800)	10,886,800)	10,354,700)
Revenues from anti-CD20 therapeutic programs	1,658,500)	1,977,800)	2,290,400)	1,980,200)	1,559,200)
Other	476,300)	774,600)	707,700)	585,900)	360,000)
Revenue	10,981,700)	13,444,600)	14,377,900)	13,452,900)	12,273,900)
Cost of sales, excluding amortization and impairment of acquired intangible assets	(2,109,700)	(1,805,200)	(1,955,400)	(1,816,300)	(1,630,000)
Gross profit	8,872,000)	11,639,400)	12,422,500)	11,636,600)	10,643,900)
Research and development	(2,501,200)	(3,990,900)	(2,280,600)	(2,597,200)	(2,253,600)
Selling, general and administrative	(2,674,300)	(2,504,500)	(2,374,700)	(2,106,300)	(1,935,500)
Amortization and impairment of acquired intangible assets	(881,300)	(464,800)	(489,900)	(747,300)	(814,700)
Collaboration profit sharing	(7,200)	(232,900)	(241,600)	(185,000)	(112,300)
Gain (loss) on divestiture of Hillerød, Denmark manufacturing operations	—)	92,500)	(55,300)	—)	—)
Gain (loss) on fair value remeasurement of contingent consideration	50,700)	86,300)	63,700)	12,300)	(62,700)
Acquired in-process research and development	(18,000)	(75,000)	—)	(112,500)	(120,000)
Restructuring charges	—)	—)	(1,500)	(12,000)	(900)
Income from operations	2,840,700)	4,550,100)	7,042,600)	5,888,600)	5,344,200)
Interest income	11,000)	42,000)	120,000)	112,500)	78,500)
Interest expense	(253,600)	(222,500)	(187,400)	(200,600)	(250,800)
Gain (loss) on investments, net	(824,900)	685,700)	204,700)	119,500)	(36,300)
Foreign exchange gains (losses), net	(22,400)	(10,700)	(7,000)	(9,900)	6,300)
Other, net	(5,600)	2,900)	(47,000)	(10,500)	(13,100)
Other income (expense), net	(1,095,500)	497,400)	83,300)	11,000)	(215,400)
Income before equity in income (loss) of investee and income tax expense	1,745,200)	5,047,500)	7,125,900)	5,899,600)	5,128,800)
Equity in income (loss) of investee, net of tax	34,900)	5,300)	(79,400)	—)	—)
Income before income tax expense	1,780,100)	5,052,800)	7,046,500)	5,899,600)	5,128,800)
Income tax expense	(52,500)	(992,300)	(1,158,000)	(1,425,600)	(2,458,700)
Net income	1,727,600)	4,060,500)	5,888,500)	4,474,000)	2,670,100)
Net income attributable to noncontrolling interests, net of tax	(171,500)	(59,900)	—)	(43,300)	(131,000)
Net income attributable to Biogen Inc.	1,556,100)	4,000,600)	5,888,500)	4,430,700)	2,539,100)

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).

Revenue Trends: Overall revenue increased steadily from 2017 to 2019, reaching a peak of approximately $14.38 billion in 2019. However, a noticeable decline occurred in 2020 and 2021, dropping to approximately $13.45 billion and $10.98 billion respectively. The net product revenue mirrored this pattern, growing from about $10.35 billion in 2017 to a high of $11.38 billion in 2019, followed by a decline in the subsequent years. Revenues from anti-CD20 therapeutic programs rose through 2019, peaking at around $2.29 billion, before falling sharply through 2021. Other revenue fluctuated, increasing until 2020 and then dropping significantly in 2021.
Cost of Sales and Gross Profit: The cost of sales showed a general upward trend over the period, rising from approximately $1.63 billion in 2017 to $2.11 billion in 2021, with a slight dip in 2020. Gross profit followed the revenue trend, increasing through 2019 but declining sharply afterward, notably dropping to $8.87 billion in 2021, indicating margin compression likely due to declining revenue coupled with relatively high costs.
Operating Expenses: Research and development (R&D) expenses increased considerably in 2020 to about $3.99 billion, before decreasing in 2021. Selling, general, and administrative expenses (SG&A) steadily increased each year, culminating at approximately $2.67 billion in 2021. Amortization and impairment of acquired intangible assets varied, with a notable increase in 2021 to approximately $881 million after decreasing between 2017 and 2020. Collaboration profit sharing decreased substantially in 2021 to only $7.2 million from earlier higher amounts.
Other Operational Items: Gains and losses related to divestiture and contingent consideration showed variable impacts, with a gain on the divestiture of manufacturing operations recorded in 2020. In-process research and development charges decreased over time. Restructuring charges were minor and episodic. Income from operations generally increased up to 2019 but declined significantly by 2021, reflecting the overall weakening profitability.
Financial Income and Expenses: Interest income peaked in 2019 and fell sharply afterward, while interest expense fluctuated, peaking again in 2021. Gains on investments showed volatility, with a notable negative swing in 2021. Foreign exchange and other net items had relatively minimal but consistently negative impacts in recent years. Other income (expense) showed significant positive income in 2020 but shifted to a large expense in 2021.
Profitability: Income before tax increased from 2017 to 2019 but fell sharply in 2020 and more so in 2021. Income tax expense decreased substantially each year, reaching a very low level in 2021, possibly due to reduced taxable income or tax planning strategies. Net income exhibited a similar trajectory, growing from about $2.67 billion in 2017 to nearly $5.89 billion in 2019, then declining sharply to approximately $1.73 billion in 2021. The net income attributable to the company followed the same pattern.
Summary of Trends: The data indicate a period of growth culminating in 2019 across revenues, profits, and operational performance. Post-2019, the company experienced a significant decrease in revenue and profitability, driven by declining product sales and increased costs in certain areas such as R&D and amortization. The sharp fall in net income in 2021 highlights financial pressures and possibly strategic or market challenges. Operational efficiency seems to have been affected as SG&A expenses increased steadily despite declining revenues. Investment-related gains and other income also presented volatility, adding to profitability uncertainty in recent years.

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Biogen Inc. (NASDAQ:BIIB)

Income Statement