Biogen Reports $9.7 Billion Revenue in 2024, Earnings Per Share Increase by 40.3%

Biogen Inc. reported total revenue of $9.7 billion for the year ended December 31, 2024, a 1.6% decrease compared to $9.8 billion in 2023. Diluted earnings per share, however, increased by 40.3% to $11.18 in 2024 from $7.97 in 2023. Product revenue, net, decreased by 0.5% to $7.2 billion in 2024. This decrease was primarily driven by a $312.1 million (6.7%) decline in multiple sclerosis (MS) product revenue due to decreased interferon demand and increased competition for TYSABRI, partially offset by a $185.1 million (10.3%) increase in rare disease revenue. The increase in rare disease revenue was attributed to new product launches, including SKYCLARYS, ZURZUVAE, and QALSODY, partially offset by decreased rest-of-world SPINRAZA revenue. Total cost and expense decreased by 9.0% to $7.8 billion in 2024, primarily due to decreases in cost of sales and research and development expenses, partially offset by an increase in amortization and impairment of acquired intangible assets.

Significant changes compared to the previous year included the completion of the acquisition of HI-Bio on July 2, 2024, for approximately $1.15 billion, plus potential future milestone payments. This acquisition added felzartamab, an anti-CD38 antibody, to Biogen's pipeline. The company also completed the sale of its priority review voucher in April 2024, receiving net proceeds of $88.6 million. Key collaborative developments included FDA approval of LEQEMBI monthly IV maintenance dosing and acceptance of the BLA for subcutaneous autoinjector dosing, as well as ongoing regulatory reviews in other global markets. Biogen also announced positive topline data from the Phase 3 PHOENYCS GO study of dapirolizumab pegol for SLE, leading to the initiation of a second Phase 3 study. Several management changes were announced, including the planned retirement of the CFO and subsequent appointments.

Operational developments included the approval of SKYCLARYS in Switzerland and the treatment of the first pediatric patient in a Phase 1 study. QALSODY received approvals in Japan and China. Biogen also discontinued several programs and studies, including zuranolone for MDD, BIIB124 for essential tremor, BIIB105 for ALS, BIIB121 for Angelman syndrome, and BIIB143 for diabetic neuropathic pain. The company also terminated its 2019 Development and Commercialization Agreement with Samsung Bioepis in the U.S. and Canada. As of December 31, 2024, Biogen employed approximately 7,605 people worldwide, with 30.9% of U.S. manager-level and above positions held by ethnic or racial minorities and 48.3% of global director-level and above positions held by women.

Biogen's financial condition showed a significant increase in cash and cash equivalents to approximately $2.4 billion as of December 31, 2024, compared to $1.0 billion at the end of 2023. This increase resulted from cash generated from operations, proceeds from the sale of its equity interest in Samsung Bioepis and the PRV, partially offset by the HI-Bio acquisition and debt repayment. The company generated approximately $2.9 billion in net cash flow from operations for the year ended December 31, 2024. Biogen stated that its existing funds, combined with cash generated from operations and access to additional financing, are sufficient to meet its foreseeable future requirements. The company also noted that it may opportunistically return cash to shareholders and pursue other business initiatives.

Biogen's outlook includes expectations of continued decline in MS revenue due to increased competition, relatively flat SPINRAZA revenue, and growth in rare disease revenue driven by SKYCLARYS and other launches. The company anticipates a modest negative impact on 2025 revenue from the IRA Medicare Part D redesign, ranging from $50 million to $100 million. The company also highlighted risks related to competition, successful product development, execution of strategic initiatives, third-party relationships, healthcare reforms, biosimilar commercialization, intellectual property protection, operational risks, and international business operations.