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How Biogen Performed in 3Q17

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Biogen’s revenue trends

In 3Q17, Biogen (BIIB) generated revenue of ~$3.1 billion, which reflected ~4% growth YoY (year-over-year). Excluding the hemophilia segment, Biogen witnessed 13% growth YoY.

In 3Q17, Biogen reported net income of ~$1.2 billion, compared with $1.0 billion in 3Q16. It reported basic earnings per share (or EPS) of $5.80 in 3Q17 and $4.72 in 3Q16.

Spinraza and biosimilars primarily propelled revenue growth in 3Q17. In 3Q17, Ocrevus contributed to ~$65 million of Biogen’s net revenue, and Biogen’s biosimilars witnessed ~11% growth QoQ (quarter-over-quarter).

The chart above demonstrates Biogen’s revenue curve from 1Q16 to 3Q17, and analysts’ estimates for 4Q17. To learn more about Biogen’s revenue trends, read How Did Biogen Perform in 1H17?

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Expenses in 3Q17

In 3Q17, Biogen reported a cost of sales of ~$370.0 million, compared with $416.9 million in 3Q16, and R&D (research and development) expenses and SG&A (selling, general, and administrative) expenses of around $446.4 million and $433.8 million, respectively, compared with $529.0 million and $462.7 million in 3Q16.In 3Q17, the company reported total costs and expenses of around $1.4 billion, compared with $1.5 billion in 3Q16.

Spinraza revenue trends

In 3Q17, Spinraza generated revenue of ~$271 million, which reflected ~33% growth QoQ. In 3Q17, US patients receiving Spinraza therapy rose 75% from 2Q17. Spinraza generated US revenue of ~$198 million.

Peers in the multiple sclerosis drug market include Teva Pharmaceutical, Sanofi, Novartis, AbbVie, and Merck. The iShares NASDAQ Biotechnology ETF (IBB) invests ~8.1% of its total portfolio in Biogen.

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