Biogen (BIIB) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue was $2.5 billion, flat year-over-year at actual currency and up 1% at constant currency, with core pharmaceutical revenue up 5% at actual and 6% at constant currency, driven by new launches offsetting MS declines.

• GAAP diluted EPS was $4.00 (down 2% YoY); Non-GAAP diluted EPS was $5.28 (up 31% YoY), both including a $0.52/share benefit from a PRV sale; excluding PRV, Non-GAAP EPS rose 18%.

• Operating income increased 34% GAAP and 43% Non-GAAP; margins improved to 32% (GAAP) and 39% (Non-GAAP).

• New product launches, including Leqembi, SKYCLARYS, and Zurzuvae, are performing at or above expectations, with Leqembi showing strong uptake in the US, Japan, and promising early data from China.

• Completed the acquisition of HI-Bio for $1.15 billion in July 2024, expanding the immunology pipeline.

Financial highlights

• Rare disease revenue grew 22% year-over-year to $534 million, led by SKYCLARYS and QALSODY; biosimilars revenue up 2% to $198 million.

• Free cash flow for Q2 was $592 million, with cash and equivalents at $1.9 billion as of June 30, 2024.

• Non-GAAP R&D expense decreased 21% year-over-year, reflecting pipeline prioritization.

• Cost of sales as a percentage of revenue improved due to product mix and lower idle capacity charges.

• No share repurchases in Q2 2024; $2.1 billion remains authorized under the repurchase program.

Outlook and guidance

• Raised full-year 2024 Non-GAAP EPS guidance to $15.75–$16.25, reflecting ~9% growth at midpoint.

• Full-year total revenue expected to decline by a low single-digit percentage versus 2023, with core pharmaceutical revenue roughly flat year-over-year.

• Operating income now expected to grow at a mid- to high-teens percentage, up from prior low double-digit guidance.

• Incremental OpEx expected in H2 2024 for new launches and HI-Bio R&D, with full-year combined non-GAAP R&D and SG&A expense projected at ~$4.3 billion.

• Guidance excludes impacts from future acquisitions, large business development, or litigation.