Our results of operations are summarized as follows:
For the Years Ended December 31,
2017
2016
2015
2014
2013
(In millions, except per share amounts)
(a) (b) (c) (d) (e)
(c) (e)
(e) (f)
(g)
Results of Operations (1)
Product revenues, net (2)
$
10,354.7
$
9,817.9
$
9,188.5
$
8,203.4
$
5,542.3
Revenues from anti-CD20 therapeutic programs
1,559.2
1,314.5
1,339.2
1,195.4
1,126.0
Other revenues
360.0
316.4
236.1
304.5
263.9
Total revenues
12,273.9
11,448.8
10,763.8
9,703.3
6,932.2
Total cost and expenses
6,929.7
6,298.4
5,872.8
5,747.7
4,441.6
Gain on sale of rights
—
—
—
16.8
24.9
Income from operations
5,344.2
5,150.4
4,891.0
3,972.4
2,515.5
Other income (expense), net
(215.4
)
(217.4
)
(123.7
)
(25.8
)
(34.9
)
Income before income tax expense and equity in loss of investee, net of tax
5,128.8
4,933.0
4,767.3
3,946.6
2,480.6
Income tax expense
2,458.7
1,237.3
1,161.6
989.9
601.0
Equity in loss of investee, net of tax
—
—
12.5
15.1
17.2
Net income
2,670.1
3,695.7
3,593.2
2,941.6
1,862.3
Net income (loss) attributable to noncontrolling interests, net of tax
131.0
(7.1
)
46.2
6.8
—
Net income attributable to Biogen Inc.
$
2,539.1
$
3,702.8
$
3,547.0
$
2,934.8
$
1,862.3
Diluted Earnings Per Share
Diluted earnings per share attributable to Biogen Inc.
$
11.92
$
16.93
$
15.34
$
12.37
$
7.81
Weighted-average shares used in calculating diluted earnings per share attributable to Biogen Inc.
213.0
218.8
231.2
237.2
238.3
Our financial condition is summarized as follows:
As of December 31,
2017
2016
2015
2014
2013
(In millions)
Financial Condition (1)
Cash, cash equivalents and marketable securities
$
6,746.3
$
7,724.5
$
6,188.9
$
3,316.0
$
1,848.5
Total assets
$
23,652.6
$
22,876.8
$
19,504.8
$
14,314.7
$
11,863.3
Notes payable and other financing arrangements, less current portion (3)
$
5,935.0
$
6,512.7
$
6,521.5
$
580.3
$
592.4
Total Biogen Inc. shareholders’ equity (4)
$
12,612.8
$
12,140.1
$
9,372.8
$
10,809.0
$
8,620.2
In addition to the following notes, the financial data included within the tables above should be read in conjunction with our consolidated financial statements and related notes and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations included in this report and our previously filed Annual Reports on Form 10-K.
(1)
On February 1, 2017, we completed the spin-off of our hemophilia business, Bioverativ, as an independent, publicly traded company. Our consolidated results of operations and financial position reflect the financial results of our hemophilia business for all periods through January 31, 2017. For additional information on the spin-off of our hemophilia business, please read Note 3, Hemophilia Spin-Off, to our consolidated financial statements included in this report.
(2)
Product revenues, net reflect the impact of the following product launches:
•
Commercial sales of SPINRAZA in the U.S. began in the fourth quarter of 2016 and in rest of world markets in the first quarter of 2017.
•
Under our collaboration agreement with AbbVie, we began to recognize revenues on sales of ZINBRYTA to third parties in the E.U. in the third quarter of 2016.
•
Under our commercial agreement with Samsung Bioepis, we began to recognize revenues on sales of BENEPALI and FLIXABI to third parties in the E.U. in the first quarter of 2016 and third quarter of 2016, respectively.
•
Commercial sales of ALPROLIX commenced in the second quarter of 2014 and commercial sales of ELOCTATE and PLEGRIDY commenced in the third quarter of 2014.
•
Commercial sales of TECFIDERA began in April 2013.
(3)
Notes payable and other financing arrangements reflects:
•
Our 2017 repayment of our 6.875% notes that were issued in 2008 with an aggregate principal amount of $550.0 million, and
•
The issuance of our senior unsecured notes for an aggregate principal amount of $6.0 billion in September 2015.
(4)
Total Biogen Inc. shareholders' equity reflects the repurchase of approximately 29.9 million shares of our common stock at a cost of approximately $8.7 billion between 2013 and 2017:
•
During 2017 we repurchased and retired approximately 3.7 million shares of our common stock at a cost of $1.0 billion under our 2016 Share Repurchase Program.
•
During 2017 we repurchased approximately 1.2 million shares of our common stock at a cost of $365.4 million under our 2011 Share Repurchase Program.
•
During 2016 we repurchased and retired approximately 3.3 million shares of our common stock at a cost of $1.0 billion under our 2016 Share Repurchase Program.
•
During 2015 we repurchased and retired approximately 16.8 million shares of our common stock at a cost of $5.0 billion under a program authorized by our Board of Directors in May 2015 for the repurchase of up to $5.0 billion of our common stock (2015 Share Repurchase Program).
•
During 2014 and 2013 we repurchased approximately 2.9 million and 2.0 million shares, respectively, of our common stock at a cost of approximately $1.3 billion under our 2011 Share Repurchase Program.
(a)
Total cost and expenses for the year ended December 31, 2017, includes a pre-tax charge to acquired in-process research and development of $120.0 million for an upfront payment made to Remedy upon closing of our asset purchase transaction for BIIB093.
(b)
Net income (loss) attributable to noncontrolling interests, net of tax for the year ended December 31, 2017, includes a pre-tax charge of $150.0 million for a payment to Neurimmune in exchange for a 15% reduction in royalty rates payable on products developed under the agreement, including on potential commercial sales of aducanumab.
(c)
Total cost and expenses for the year ended December 31, 2016, includes a pre-tax charge of $454.8 million related to our January 2017 settlement and license agreement with Forward Pharma.
Total cost and expenses for the year ended December 31, 2017, includes $444.2 million of amortization and impairment charges related to our U.S. and rest of world licenses to Forward Pharma’s intellectual property, including Forward Pharma's intellectual property related to TECFIDERA. For additional information on our
settlement and license agreement with Forward Pharma and related intangible assets, please read Note 7, Intangible Assets and Goodwill, to our consolidated financial statements included in this report.
(d)
Income tax expense for the year ended December 31, 2017, includes $1,173.6 million related to our current estimate of the provisions of the 2017 Tax Act, including a $989.6 million expense under the Transition Toll Tax. For additional information on the 2017 Tax Act, please read Note 17, Income Taxes, to our consolidated financial statements included in this report.
(e)
Total cost and expenses for the years ended December 31, 2017, 2016 and 2015, include restructuring charges of $0.9 million, $33.1 million and $93.4 million, respectively. In addition, total cost and expenses for the year ended December 31, 2016, also include charges to cost of sales totaling $52.4 million of expenses incurred as a result of our determination to cease manufacturing and vacate our small-scale biologics facility in Cambridge, MA as well as close and vacate our warehouse in Somerville, MA. Total cost and expenses for the years ended December 31, 2017 and 2016, also includes $19.2 million and $18.1 million, respectively, of costs incurred directly related to the spin-off of our hemophilia business into an independent, publicly traded company.
(f)
Net income attributable to Biogen Inc. for the year ended December 31, 2015, includes a pre-tax charge to noncontrolling interest of $60.0 million for a milestone payment due to Neurimmune upon the enrollment of the first patient in a Phase 3 trial for aducanumab.
(g)
Commencing in the second quarter of 2013 product and total revenues include 100% of net revenues related to sales of TYSABRI as a result of our acquisition of all remaining rights to TYSABRI from Elan Pharma International, Ltd (Elan), an affiliate of Elan Corporation, plc. Upon closing of this transaction, our collaboration agreement was terminated.
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