b6792a4bdd1691d5b1df4752bb65bd424b0ff9fd907c4a1e3b36fddb8fa4a3e1

Biogen’s cash and cash equivalents jumped in Q4 2024 mainly due to a **sharp increase in cash from operations** (an **85.9% increase** resulting in **$2,875.5 million** in operating cash flow) combined with substantial **proceeds from equity interest sales** (including **$437.5 million** from Samsung BioLogics and additional gains from other equity sales). These cash inflows more than offset the cash used for the **acquisition of HI-Bio** and a **debt repayment**. Collectively, these activities increased the cash balance from **$1,049.9 million** to **$2,375.0 million**.  **[0000875045-25-000009_biib-20241231.htm:115]** **[0000875045-25-000009_biib-20241231.htm:113]** 

Why did Cash and cash equivalents jump in Q4 2024?

The **significant rise in total assets in Q3 2024** was driven by several factors. Firstly, there was an increase in **cash and cash equivalents** from **$1,049.9 million** to **$1,699.2 million** due to cash generated from operations, a **$437.5 million** receipt from Samsung BioLogics related to the sale of Biogen’s equity interest in Samsung Bioepis, and a net cash receipt of **$88.6 million** from the sale of one of their two Priority Review Vouchers.  **[0000875045-24-000032_biib-20240930.htm:7]** **[0000875045-24-000032_biib-20240930.htm:79]**  Additionally, **intangible assets** increased markedly from **$8,363.0 million** to **$9,805.5 million** because of the acquisition of Reata Pharmaceuticals, which included a fair value step-up adjustment related to acquired inventory and intangible assets like completed technology and in-process research and development.  **[0000875045-24-000032_biib-20240930.htm:7]** **[0000875045-24-000032_biib-20240930.htm:18]**  Finally, **goodwill** saw an increase from **$6,219.2 million** to **$6,485.8 million** as part of the same acquisition activities.  **[0000875045-24-000032_biib-20240930.htm:7]** **[0000875045-24-000032_biib-20240930.htm:18]** 

What drove the significant rise in Total assets in Q3 2024?

The surge in the current portion of notes payable and term loan in Q3 2024 was primarily driven by the **reclassification of the 4.050% Senior Notes due September 15, 2025**, which moved from non-current to current liabilities as the notes approached maturity within the next 12 months.  **[0000875045-24-000032_biib-20240930.htm:31]** **[0000875045-24-000032_biib-20240930.htm:7]** **[0000875045-24-000032_biib-20240930.htm:77]** 

What caused the surge in the current portion of notes payable and term loan in Q3 2024?

The sharp decline in **Notes payable and term loan** in Q3 2024 is primarily due to the complete **repayment of the 2023 Term Loan**. Biogen drew **$1.0 billion** for its acquisition of Reata in 2023, which comprised a **$500 million floating rate 364-day tranche** and a **$500 million floating rate three-year tranche**. The repayment, which was executed in stages—with the remaining **$150 million** of the 364-day tranche repaid in Q1 2024 and the remaining **$250 million** of the three-year tranche repaid in Q2 2024—resulted in a substantial reduction of the outstanding balance by Q3 2024.  **[0000875045-24-000032_biib-20240930.htm:31]** **[0000875045-24-000032_biib-20240930.htm:80]** **[0000875045-24-000032_biib-20240930.htm:7]** **[0000875045-24-000032_biib-20240930.htm:77]** 

Why did Notes payable and term loan decline sharply in Q3 2024?

9a9a163ab2033afda567b21be0734f3c4c100a2a1b7be50d386f1e1cd053bde4

The sharp decline in **contract manufacturing revenue** in Q1 2024 stemmed from two main factors. First, **higher volumes in Q1 2023** were driven by the timing of batch production, including batches related to LEQEMBI following its accelerated U.S. approval in Q1 2023. Second, the **completion of minimum batch production commitments**—related to the 2020 sale of Biogen’s manufacturing operations in Hillerød, Denmark to FUJIFILM—was achieved by the end of 2023, leading to lower manufacturing volumes in 2024.  **[0000875045-24-000016_biib-20240331.htm:48]** **[0000875045-24-000016_biib-20240331.htm:18]** **[0000875045-24-000012_exhibit991-q12024pressrele.htm:6]** 

Why did Contract manufacturing revenue drop so sharply in Q1 2024?

The doubling of the amortization and impairment expense in Q4 2024 was driven by several factors. **First**, there was a significant increase in the **amortization related to SKYCLARYS**, stemming from the Reata acquisition, which added a new and substantial intangible asset expense.  **[0000875045-25-000009_biib-20241231.htm:108]** **[0000875045-25-000009_biib-20241231.htm:190]** **[0000875045-25-000009_biib-20241231.htm:95]**  **Second**, Biogen recorded **impairment charges of approximately $60.2 million**; this comprised a **$40.0 million impairment charge** for certain clinical programs and a **$20.2 million impairment charge** related to Samsung Bioepis commercialization rights.  **[0000875045-25-000009_biib-20241231.htm:108]** **[0000875045-25-000009_biib-20241231.htm:190]** **[0000875045-25-000009_biib-20241231.htm:124]**  **Third**, the company began to amortize a **$1.3 billion fair value step-up adjustment** from the Reata acquisition, with about **$43.0 million** of that adjustment amortized in Q4 2024.  **[0000875045-25-000009_biib-20241231.htm:104]** **[0000875045-25-000004_exhibit991-q42024pressrele.htm:12]** 

What factors drove the doubling of Amortization and impairment in Q4 2024?

The significant decline in R&D spending in Q3 2024 was primarily driven by a **reduction in equity-based compensation expenses**—with a decrease from approximately **$197 million** in 2023 related to the Reata acquisition to about **$42.5 million** in 2024 related to the HI-Bio acquisition—as well as by **cost-reduction measures** implemented as part of R&D prioritization and Fit for Growth initiatives, and notably lower expenditures on **clinical trials and close-out costs** compared to the prior period.  **[0000875045-24-000032_biib-20240930.htm:68]** **[0000875045-24-000030_exhibit991-q32024pressrele.htm:2]** 

What caused the significant decline in R&D spending in Q3 2024?

Biogen's **SG&A expenses were considerably lower in Q3 2024** primarily because the company did not incur the approximately **$196 million** in equity-based compensation expenses that were present in Q3 2023, largely related to the **Reata acquisition**. Additionally, the company implemented cost-saving initiatives under its **Fit for Growth program**, which further reduced these expenses, despite a slight offset due to increased commercialization spending to support the launches of **LEQEMBI** and **SKYCLARYS**.  **[0000875045-24-000032_biib-20240930.htm:71]** **[0000875045-24-000030_exhibit991-q32024pressrele.htm:2]** 

Why were SG&A expenses considerably lower in Q3 2024?

The turnaround to a **positive net income in Q3 2024** was driven by several factors. **Revenue changes** played a role, with a total revenue of **$2.5 billion** and targeted growth from new product launches helping to counterbalance declines in other areas. Additionally, **product performance improvements**—especially in the rare disease segment and new products like **SKYCLARYS and ZURZUVAE**—helped offset a roughly **9% decline in MS product revenue**. **Cost management** also contributed, with initiatives leading to improved operating income and a notable reduction in non-GAAP R&D expenses. Finally, **favorable tax items**, which added approximately **$16 million** to net income, along with adjustments in non-operating items, further supported the shift from a loss to a positive net income.  **[0000875045-24-000030_exhibit991-q32024pressrele.htm:0]** **[BIIB_3404622_7]** **[BIIB_3404622_8]** 

What led to the turnaround to positive Net income in Q3 2024?

8ab4ec9c87d398c0dc8a78aa1b4134a10cfc915b6464f6948f5a87620d403846

Cash and cash equivalents (USD, millions)

Accounts receivable, net (USD, millions)

Due from anti-CD20 therapeutic programs (USD, millions)

Inventory (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Property, plant and equipment, net (USD, millions)

Operating lease assets (USD, millions)

Intangible assets, net (USD, millions)

Goodwill (USD, millions)

Deferred tax asset (USD, millions)

Investments and other assets (USD, millions)

Total assets (USD, millions)

Current portion of notes payable and term loan (USD, millions)

Taxes payable (USD, millions)

Accounts payable (USD, millions)

Accrued expense and other (USD, millions)

Total current liabilities (USD, millions)

Notes payable and term loan (USD, millions)

Deferred tax liability (USD, millions)

Long-term operating lease liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

008dc85bc6df3fd900b0ebe177be66d5370af2f044dea5d51258148bb41d2455

Product revenue, net (USD, millions)

Revenue from anti-CD20 therapeutic programs (USD, millions)

Alzheimer's collaboration revenue (USD, millions)

Contract manufacturing, royalty and other revenue (USD, millions)

Total revenue (USD, millions)

Cost of sales, excluding amortization and impairment of acquired intangible assets (USD, millions)

Research and development (USD, millions)

Selling, general and administrative (USD, millions)

Amortization and impairment of acquired intangible assets (USD, millions)

Collaboration profit sharing/(loss reimbursement) (USD, millions)

(Gain) loss on fair value remeasurement of contingent consideration (USD, millions)

Restructuring charges (USD, millions)

Other (income) expense, net (USD, millions)

Total cost and expense (USD, millions)

Income before income tax (benefit) expense and equity in (income) loss of investee, net of tax (USD, millions)

Income tax (benefit) expense (USD, millions)

Net income attributable to Biogen Inc. (USD, millions)

Basic earnings per share attributable to Biogen Inc. (USD)

Diluted earnings per share attributable to Biogen Inc. (USD)

Weighted-average shares used in calculating Basic earnings per share attributable to Biogen Inc. (millions)

Weighted-average shares used in calculating Diluted earnings per share attributable to Biogen Inc. (millions)

e5d3cc3b8a062cc7c13ae7f4c8ec7cc06abb97e624df08db515978590ce906ab

Adjustments for Non-Cash Items (USD, M)

Stock-Based Compensation (USD, M)

Changes in Working Capital (USD, M)

Capital Expenditures (CapEx) (USD, M)

Proceeds from Debt (USD, M)

Repayments of Debt (USD, M)

Share Repurchases (USD, M)

Dividend Payments (USD, M)

Net Change in Cash (USD, M)

040abca501546a626d3fc4900554b69bd0d8f7cdee21a6488cf82ddd2d1815a1

961b7440e55959a9f63895e7c66228426af6785c8127108d0a7f7d8bb28fb502

cbfce97fdfb6e866c9518cd3f7ab04bfe22aa3a90320d9f0254774f7b288947d

United States

Europe

- Germany

Asia

Other

Rest of World

Total Revenue

1a1222bebdd7321a7bebb39d43ddd2e64fc906586a515e84310e8177f4102373

428b8d3423d808d89b9a408f325173b9d5b2498c772c870c5a20b606e50ea566

BIOGEN (BIIB)

Financials