[February 13, 2018] |
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Bioverativ Reports Fourth Quarter and Full Year 2017 Performance
Bioverativ
Inc. (NASDAQ: BIVV) today reported financial results for the fourth
quarter and full year of 2017.
Key financial results include:
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Fourth quarter 2017 revenues of $328.7 million, up 28.3% year-over-year
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Fourth quarter 2017 revenues increased $37.1 million over third
quarter 2017, up 12.7%
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Fourth quarter 2017 GAAP net income of $141.3 million; Non-GAAP net
income of $103.3 million
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Full year 2017 GAAP tax rate of 21.3%; Non-GAAP tax rate of 34.3%
"We are proud of our accomplishments in 2017. We increased our market
leadership position in the extended half-life market with our products
ELOCTATE® and ALPROLIX® and grew revenue by 32% year-over-year. We built
a robust clinical stage pipeline by advancing internal assets such as
BIVV001 into a Phase 1/2a clinical trial, which is progressing with
patients being dosed. We acquired True North Therapeutics and have
initiated our Phase 3 registrational trials for BIVV009 in cold
agglutinin disease," said John Cox, Chief Executive Officer of
Bioverativ.
"As we look toward 2018 and our future, Sanofi brings proven
capabilities and a global infrastructure, which we believe will help to
rapidly expand access to our medicines globally and further our mission
of transforming the lives of people with rare blood disorders. Since its
inception, I strongly believed Bioverativ would create meaningful value
for shareholders. Our transaction with Sanofi delivers tremendous value
for those who have invested in and supported our mission," continued Mr.
Cox.
Revenue Highlights
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(In millions, except percentages)
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Q4 '17
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Q3 '17
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Q4 '16
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Q4 '17 v. Q3 '17
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Q4 '17 v. Q4 '16
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FY '17
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FY '16
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FY '17 v. FY '16
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ELOCTATE
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$
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208.0
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$
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186.3
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$
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148.7
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11.6
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%
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39.9
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%
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$
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724.5
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$
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513.0
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41.2
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%
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ALPROLIX
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$
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100.4
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$
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88.5
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$
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93.1
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13.4
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%
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7.8
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%
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$
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364.6
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$
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333.6
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9.3
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%
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Total Product Revenues
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$
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308.4
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$
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274.8
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$
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241.8
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12.2
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%
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27.5
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%
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$
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1,089.1
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$
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846.6
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28.6
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%
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Collaboration Revenues
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$
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20.3
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$
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16.8
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$
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14.4
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20.8
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%
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41.0
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%
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$
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79.4
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$
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40.8
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94.6
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%
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Total Revenues
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$
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328.7
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$
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291.6
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$
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256.2
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12.7
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%
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28.3
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%
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$
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1,168.5
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$
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887.4
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31.7
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%
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Note: Percent changes represented as increase & (decrease)
In the US, product revenues grew 26.9% compared to the fourth quarter of
2016 and 12.8% compared to the third quarter of 2017. Product revenues
outside the US grew 30.7% compared to the fourth quarter of 2016 and
9.8% compared to the third quarter of 2017.
ELOCTATE remained on a strong trajectory due to high patient retention,
continued capture of patients switching to long-acting therapies, and
the market trend towards prophylactic treatment.
ALPROLIX volume increased despite competition due to growing
understanding and appreciation for safety and efficacy data as well as
increased protection and dosing education.
Collaboration revenues from Swedish Orphan Biovitrum AB (publ) (Sobi™)
grew $3.5 million compared to the third quarter of 2017 due to increased
royalty revenue driven by increased sales and new country launches
within Sobi's territory as well as higher contract manufacturing revenue.
Full year 2017 product revenues grew 27.0% in the US and 37.5% outside
the US compared to 2016. Revenue growth was largely attributed to
captured market share from short acting factor therapies, increased
prophylactic adoption among appropriate patients, and low
discontinuation rates.
Expense Highlights
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GAAP
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(In millions, except percentages)
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Q4 '17
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Q3 '17
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Q4 '16
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Q4 '17 v. Q3 '17
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Q4 '17 v. Q4 '16
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FY '17
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FY '16
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FY '17 v. FY '16
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Cost of sales
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$
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70.3
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$
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65.5
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$
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75.7
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7.3
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%
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(7.1
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%)
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$
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279.6
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$
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237.9
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17.5
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%
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R&D
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$
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83.9
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$
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70.1
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$
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63.2
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19.7
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%
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32.8
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%
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$
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224.6
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$
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210.1
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6.9
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%
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SG&A
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$
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56.6
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$
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52.2
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$
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33.0
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8.4
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%
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71.5
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%
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$
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217.1
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$
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147.0
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47.7
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%
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Note: Percent changes represented as increase & (decrease)
Cost of sales fell $5.4 million compared to the fourth quarter of 2016
as lower 2017 inventory write-offs and the absence of costs associated
with the 2016 shutdown of a Biogen Cambridge manufacturing facility
partially offset by increased volume sales of ELOCTATE and ALPROLIX
across all geographies, humanitarian aid donations, and royalties to
Sobi. Cost of sales grew $4.8 million compared to the third quarter of
2017 due to increased volume sales of ELOCTATE and ALPROLIX and
increased royalties paid to Sobi. Full year 2017 cost of sales grew
$41.7 million compared to full year 2016 as volume growth in the US,
Japan, and Canada, higher contract manufacturing and royalties paid to
Sobi were partially offset by impairment charges associated with the
2016 shutdown of a Biogen Cambridge manufacturing facility, lower
inventory write-offs, and prior period allocations.
Research and development expenses increased $20.7 million compared to
the fourth quarter of 2016 as costs associated with BIVV009
registrational Phase 3 clinical trials as well as a buyout of royalty
and development milestones to a third party associated with
BIVV001/BIVV002 were partially offset by lower prior period allocations.
Compared to the third quarter of 2017, research and development expenses
increased $13.8 million due largely to the BIVV001 clinical
manufacturing campaign. Full year 2017 research and development costs
rose $14.5 million compared to 2016 as pipeline development for multiple
programs offset prior period allocations.
Selling, general and administrative expenses rose $23.6 million compared
to the fourth quarter of 2016 as an increase in workforce expenses and
higher fees and services offset prior period allocations. Compared to
the third quarter of 2017, selling, general and administrative expenses
grew $4.4 million primarily due to increased fees and services offset by
higher workforce expenses. Full year 2017 selling, general and
administrative costs rose $70.1 million over 2016 due to the acquisition
of True North Therapeutics, increased workforce expenses, and increased
fees and services.
Non-GAAP
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(In millions, except percentages)
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Q4 '17
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Q3 '17
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Q4 '16
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Q4 '17 v. Q3 '17
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Q4 '17 v. Q4 '16
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FY '17
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FY '16
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FY '17 v. FY '16
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Cost of sales
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$
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68.9
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$
|
64.1
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$
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61.8
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7.5
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%
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|
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11.5
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%
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$
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273.9
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$
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184.7
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48.3
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%
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R&D
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$
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64.9
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$
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54.8
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$
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60.5
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18.4
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%
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7.3
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%
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$
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189.1
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$
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205.1
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(7.8
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%)
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SG&A
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$
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45.9
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$
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39.3
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$
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31.8
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16.8
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%
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|
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44.3
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%
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$
|
162.4
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$
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142.7
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|
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13.8
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%
|
Note: Percent changes represented as increase & (decrease)
Cost of sales increased $7.1 million compared to the fourth quarter of
2016 and $4.8 million compared to the third quarter of 2017. Full year
2017 cost of sales rose $89.2 million compared to 2016. Non-GAAP
adjustments for fourth quarter 2017 cost of sales totaled $1.4 million.
Research and development expenses increased $4.4 million compared to the
fourth quarter of 2016 and $10.1 million compared to the third quarter
of 2017. Full year 2017 research and development costs decreased $16.0
million compared to 2016 due to prior period allocations. Non-GAAP
adjustments for fourth quarter 2017 research and development costs
totaled $19.0 million, the most significant of which were a buyout of
royalty and development milestones to a third party associated with
BIVV001/BIVV002 and a remeasurement of the contingent consideration owed
to former equity holders of True North Therapeutics.
Selling, general and administrative expenses rose $14.1 million compared
to the fourth quarter of 2016 and $6.6 million compared to the third
quarter of 2017. Full year 2017 selling, general and administrative
expenses grew $19.7 million compared to 2016. Non-GAAP adjustments for
fourth quarter 2017 selling, general and administrative expenses totaled
$10.7 million primarily due to equity based compensation and
spin-related costs.
A reconciliation of GAAP to Non-GAAP financial results can be found in
Table 5 at the end of this release.
Tax
The company's GAAP effective income tax rate for the three months ended
December 31, 2017 was (18.9%). This compares to GAAP effective income
tax rate of (169.6%) for the three months ended December 31, 2016. The
difference from the prior year was primarily due to the realization of
deferred tax assets resulting from net losses and business credit
carryforwards in 2016 as well as the passage of tax reform in December
2017. The company's GAAP effective income tax rates for full years
ending 2017 and 2016 were 21.3% and (50.6%), respectively.
Adjusting for the realization of deferred tax assets, net losses, and
business credit carryforwards in 2016 as well as the impact of recently
passed tax reform legislation on net deferred tax liabilities in 2017,
the non-GAAP tax rates for full years ending 2017 and 2016 were 34.3%
and 34.1%, respectively.
Cash Position
As of December 31, 2017, Bioverativ had $436.5 million in cash and cash
equivalents and no debt.
Recent Corporate Events
-
On January 22, 2018 it was announced Bioverativ and Sanofi entered
into a definitive agreement under which Sanofi will acquire all of the
outstanding shares of Bioverativ for $105 per share in cash.
-
Presented a wide breadth of data at the 59th American Society of
Hematology (ASH) Annual Meeting and Exposition from December 9-12,
2017, including Phase 1b safety and efficacy results on BIVV009, its
first-in-class monoclonal antibody in Phase 3 clinical development for
the treatment of cold agglutinin disease (CAgD); data from the largest
natural history study of CAgD, which quantified the risk of
life-threatening thromboemobolic events associated with the disease;
results from a preclinical imaging study demonstrating that ALPROLIX
had higher tissue distribution and retention in joints compared with
other factor IX molecules, data on weekly prophylactic dosing with
ELOCTATE in people with hemophilia A, and dosing every 14 or more days
with ALPROLIX in people with severe hemophilia B.
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Announced that the U.S. Food and Drug Administration approved updated
labeling for ALPROLIX that further supported the long-term efficacy
and safety profile of the product and included the addition of
pediatric data showing that prophylactic treatment with ALPROLIX
results in effective bleed protection with extended dosing intervals.
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Published interim data in collaboration with Sobi™ of results from a
longitudinal study showing improvements in long-term joint health for
hemophilia A patients following prophylactic treatment with ELOCTATE.
This was the first study to demonstrate continuous improvement in
joint health with an extended half-life factor therapy and positive
results were seen in study participants regardless of prior treatment
regimen, severity of damage or target joints.
Conference Call and Webcast
The company will not be conducting an earnings conference call for the
fourth quarter and full year 2017.
About Bioverativ
Bioverativ (NASDAQ: BIVV) is a global biopharmaceutical company
dedicated to transforming the lives of people with hemophilia and other
rare blood disorders through world-class research, development and
commercialization of innovative therapies. Launched in 2017 following
separation from Biogen Inc., Bioverativ builds upon a strong heritage of
scientific innovation and is committed to actively working with the
blood disorders community. The company's mission is to create progress
for patients where they need it most and its hemophilia therapies when
launched represented the first major advancements in hemophilia
treatment in more than two decades. For more information, visit www.bioverativ.com
or follow @bioverativ
on Twitter.
Safe Harbor
This press release contains forward-looking statements, including
statements relating to: the pending acquisition by Sanofi, including the
completion and any anticipated benefits thereof; Bioverativ's business
and strategic objectives; growth prospects; commercial and pipeline
progress; collaboration programs; clinical trials; and financial
information. These forward-looking statements may be accompanied by such
words as "anticipate," "believe," "could," "estimate," "expect,"
"forecast," "intend," "may," "plan," "potential," "project," "target,"
"will" and other words and terms of similar meaning. You should not
place undue reliance on these statements.
These forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those reflected in
such statements, including: risks related to the merger with Sanofi;
Bioverativ's dependence on revenues from sales of ELOCTATE and ALPROLIX;
failure to compete effectively due to significant product competition in
the markets in which Bioverativ operates; product quality or safety
concerns, including the occurrence of adverse safety events; product
development risks; risks associated with clinical trials; risks relating
to actions of regulatory authorities; risks related to reliance on third
parties for manufacturing, supply and distribution of Bioverativ's
products and product candidates; difficulties in obtaining and
maintaining adequate coverage, pricing and reimbursement for
Bioverativ's products; failure to obtain and maintain adequate
protection for intellectual property and other proprietary rights; the
outcome of any significant legal proceedings; risks of doing business in
international and emerging markets; risks associated with current and
potential future healthcare reforms; failure to identify and execute on
business development and research and development opportunities;
Bioverativ's dependence on relationships with collaborators and other
third parties for revenue and other aspects of its business; loss of key
employees or inability to attract and retain key personnel; disruptions
to, or other adverse impact on Bioverativ's relationships with its
customers and other business partners; adverse effects to Bioverativ
liquidity; ability to access capital and credit markets; the adequacy of
the Bioverativ's cash flows from operations; failure to comply with
legal and regulatory requirements affecting Bioverativ's business; the
impact of global economic conditions; fluctuations in foreign exchange
and interest rates; changes in the law concerning the taxation of
income; risks relating to technology failures or breaches; Bioverativ's
lack of operating history as a standalone business; risks relating to
the separation from Biogen; and other risks and uncertainties described
in the Risk Factors section of Bioverativ's quarterly and annual filings
with the Securities and Exchange Commission.
These statements are based on Bioverativ's current beliefs and
expectations and speak only as of the date of this release. Bioverativ
does not undertake any obligation to publicly update any forward-looking
statements, whether as a result of new information, future developments
or otherwise.
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TABLE 1
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(In millions, except percentages)
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Q4 '17
|
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Q3 '17
|
|
|
|
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Q4 '16
|
|
|
|
Q4 '17 v. Q3 '17
|
|
|
|
Q4 '17 v. Q4 '16
|
|
|
|
|
FY '17
|
|
|
|
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FY '16
|
|
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FY '17 v. FY '16
|
ELOCTATE (US)
|
|
|
|
$
|
174.6
|
|
|
|
$
|
155.9
|
|
|
|
$
|
126.2
|
|
|
|
12.0
|
%
|
|
|
|
38.4
|
%
|
|
|
|
$
|
615.6
|
|
|
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$
|
445.3
|
|
|
|
38.2
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%
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ALPROLIX (US)
|
|
|
|
$
|
78.9
|
|
|
|
$
|
68.9
|
|
|
|
$
|
73.6
|
|
|
|
14.5
|
%
|
|
|
|
7.2
|
%
|
|
|
|
$
|
290.1
|
|
|
|
$
|
267.9
|
|
|
|
8.3
|
%
|
US Product Revenues
|
|
|
|
$
|
253.5
|
|
|
|
$
|
224.8
|
|
|
|
$
|
199.8
|
|
|
|
12.8
|
%
|
|
|
|
26.9
|
%
|
|
|
|
$
|
905.7
|
|
|
|
$
|
713.2
|
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ELOCTATE (Ex-US)
|
|
|
|
$
|
33.4
|
|
|
|
$
|
30.4
|
|
|
|
$
|
22.5
|
|
|
|
9.9
|
%
|
|
|
|
48.4
|
%
|
|
|
|
$
|
108.9
|
|
|
|
$
|
67.7
|
|
|
|
60.9
|
%
|
ALPROLIX (Ex-US)
|
|
|
|
$
|
21.5
|
|
|
|
$
|
19.6
|
|
|
|
$
|
19.5
|
|
|
|
9.7
|
%
|
|
|
|
10.3
|
%
|
|
|
|
$
|
74.5
|
|
|
|
$
|
65.7
|
|
|
|
13.4
|
%
|
Ex-US Product Revenues
|
|
|
|
$
|
54.9
|
|
|
|
$
|
50.0
|
|
|
|
$
|
42.0
|
|
|
|
9.8
|
%
|
|
|
|
30.7
|
%
|
|
|
|
$
|
183.4
|
|
|
|
$
|
133.4
|
|
|
|
37.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration Revenues
|
|
|
|
$
|
20.3
|
|
|
|
$
|
16.8
|
|
|
|
$
|
14.4
|
|
|
|
20.8
|
%
|
|
|
|
41.0
|
%
|
|
|
|
$
|
79.4
|
|
|
|
$
|
40.8
|
|
|
|
94.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
|
|
$
|
328.7
|
|
|
|
$
|
291.6
|
|
|
|
$
|
256.2
|
|
|
|
12.7
|
%
|
|
|
|
28.3
|
%
|
|
|
|
$
|
1,168.5
|
|
|
|
$
|
887.4
|
|
|
|
31.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
(In millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
For the Twelve Months Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product, net
|
|
|
|
$
|
308.4
|
|
|
|
|
$
|
241.8
|
|
|
|
|
$
|
1,089.1
|
|
|
|
$
|
846.6
|
|
Collaboration
|
|
|
|
|
20.3
|
|
|
|
|
|
14.4
|
|
|
|
|
|
79.4
|
|
|
|
|
40.8
|
|
Total revenues
|
|
|
|
|
328.7
|
|
|
|
|
|
256.2
|
|
|
|
|
|
1,168.5
|
|
|
|
|
887.4
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
|
|
|
70.3
|
|
|
|
|
|
75.7
|
|
|
|
|
|
279.6
|
|
|
|
|
237.9
|
|
Research and development
|
|
|
|
|
83.9
|
|
|
|
|
|
63.2
|
|
|
|
|
|
224.6
|
|
|
|
|
210.1
|
|
Selling, general and administrative
|
|
|
|
|
56.6
|
|
|
|
|
|
33.0
|
|
|
|
|
|
217.1
|
|
|
|
|
147.0
|
|
Total cost and expenses
|
|
|
|
|
210.8
|
|
|
|
|
|
171.9
|
|
|
|
|
|
721.3
|
|
|
|
|
595.0
|
|
Income from operations
|
|
|
|
|
117.9
|
|
|
|
|
|
84.3
|
|
|
|
|
|
447.2
|
|
|
|
|
292.4
|
|
Other income (expense), net
|
|
|
|
|
0.9
|
|
|
|
|
|
0.6
|
|
|
|
|
|
4.7
|
|
|
|
|
(0.5
|
)
|
Income before income tax expense (benefit)
|
|
|
|
|
118.8
|
|
|
|
|
|
84.9
|
|
|
|
|
|
451.9
|
|
|
|
|
291.9
|
|
Income tax expense (benefit)
|
|
|
|
|
(22.5
|
)
|
|
|
|
|
(144.0
|
)
|
|
|
|
|
96.3
|
|
|
|
|
(147.7
|
)
|
Net income
|
|
|
|
$
|
141.3
|
|
|
|
|
$
|
228.9
|
|
|
|
|
$
|
355.6
|
|
|
|
$
|
439.6
|
|
Diluted earnings per share
|
|
|
|
$
|
1.30
|
|
|
|
|
$
|
2.12
|
|
|
|
|
$
|
3.28
|
|
|
|
$
|
4.07
|
|
Weighted average shares used in
|
|
|
|
|
108.6
|
|
|
|
|
|
108.0
|
|
|
|
|
|
108.5
|
|
|
|
|
108.0
|
|
calculating diluted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
As of
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
436.5
|
|
|
|
$
|
-
|
Accounts receivable, net
|
|
|
|
|
189.4
|
|
|
|
|
149.4
|
Inventory
|
|
|
|
|
40.6
|
|
|
|
|
302.0
|
Restricted cash
|
|
|
|
|
40.0
|
|
|
|
|
-
|
Other current assets
|
|
|
|
|
71.8
|
|
|
|
|
24.2
|
Total current assets
|
|
|
|
|
778.3
|
|
|
|
|
475.6
|
Property, plant and equipment, net
|
|
|
|
|
24.0
|
|
|
|
|
28.4
|
Intangible assets, net
|
|
|
|
|
635.9
|
|
|
|
|
51.7
|
Goodwill
|
|
|
|
|
170.7
|
|
|
|
|
-
|
Deferred tax assets, net
|
|
|
|
|
1.0
|
|
|
|
|
154.2
|
Other long-term assets
|
|
|
|
|
8.4
|
|
|
|
|
22.0
|
Total assets
|
|
|
|
$
|
1,618.3
|
|
|
|
$
|
731.9
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
26.1
|
|
|
|
$
|
12.7
|
Accrued expenses and other current liabilities
|
|
|
|
|
233.5
|
|
|
|
|
89.3
|
Due to True North Therapeutics equityholders
|
|
|
|
|
40.0
|
|
|
|
|
-
|
Due to Biogen
|
|
|
|
|
90.5
|
|
|
|
|
-
|
Total current liabilities
|
|
|
|
|
390.1
|
|
|
|
|
102.0
|
Other long-term liabilities
|
|
|
|
|
92.5
|
|
|
|
|
63.7
|
Deferred tax liabilities, net
|
|
|
|
|
89.0
|
|
|
|
|
-
|
Contingent consideration
|
|
|
|
|
149.1
|
|
|
|
|
-
|
Total liabilities
|
|
|
|
$
|
720.7
|
|
|
|
$
|
165.7
|
Total equity
|
|
|
|
|
897.6
|
|
|
|
|
566.2
|
Total liabilities and equity
|
|
|
|
$
|
1,618.3
|
|
|
|
$
|
731.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 4
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
(in millions)
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2017
|
|
|
|
2016
|
Net cash flows provided by operating activities
|
|
|
|
$
|
590.7
|
|
|
|
|
$
|
301.6
|
|
Net cash flows used in investing activities
|
|
|
|
|
(408.8
|
)
|
|
|
|
|
(35.2
|
)
|
Net cash flows provided by (used in) financing activities
|
|
|
|
|
253.6
|
|
|
|
|
|
(266.4
|
)
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
|
|
|
1.0
|
|
|
|
|
|
-
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
436.5
|
|
|
|
|
|
-
|
|
Cash and cash equivalents, beginning of the period
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Cash and cash equivalents, end of the period
|
|
|
|
$
|
436.5
|
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP to Non-GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An itemized reconciliation between net income on a GAAP and
Non-GAAP basis is as follows:
|
|
|
|
|
|
|
|
|
|
(In millions, except EPS and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2017
|
|
|
|
|
GAAP
|
|
|
|
Share- Based Comp. (1)
|
|
|
|
Amort. of Intangibles (2)
|
|
|
|
Tax- Related Items (4)
|
|
|
|
Spin- Related Costs (5)
|
|
|
|
Upfront & Milestone Payments (6)
|
|
|
|
Acquisition- Related Costs (7)
|
|
|
|
Sanofi Acquisition (8)
|
|
|
|
Non-GAAP
|
Total revenues
|
|
|
|
328.7
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
328.7
|
|
Cost of sales
|
|
|
|
(70.3
|
)
|
|
|
|
-
|
|
|
|
1.4
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(68.9
|
)
|
R&D
|
|
|
|
(83.9
|
)
|
|
|
|
1.3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
0.8
|
|
|
|
9.3
|
|
|
|
7.6
|
|
|
|
-
|
|
|
|
(64.9
|
)
|
SG&A
|
|
|
|
(56.6
|
)
|
|
|
|
3.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
4.9
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
2.0
|
|
|
|
(45.9
|
)
|
Operating margin
|
|
|
|
35.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45.3
|
%
|
Other income (expense), net
|
|
|
|
0.9
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.9
|
|
Income before taxes
|
|
|
|
118.8
|
|
|
|
|
5.0
|
|
|
|
1.4
|
|
|
|
-
|
|
|
|
|
5.7
|
|
|
|
9.3
|
|
|
|
7.7
|
|
|
|
2.0
|
|
|
|
149.9
|
|
Income tax expense (benefit) (9)
|
|
|
|
(22.5
|
)
|
|
|
|
1.4
|
|
|
|
0.4
|
|
|
|
58.9
|
|
|
|
|
1.8
|
|
|
|
3.2
|
|
|
|
2.7
|
|
|
|
0.7
|
|
|
|
46.6
|
|
Tax rate
|
|
|
|
(18.9
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
%
|
Net income
|
|
|
|
141.3
|
|
|
|
|
3.6
|
|
|
|
1.0
|
|
|
|
(58.9
|
)
|
|
|
|
3.9
|
|
|
|
6.1
|
|
|
|
5.0
|
|
|
|
1.3
|
|
|
|
103.3
|
|
Diluted EPS
|
|
|
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.95
|
|
(In millions, except EPS and percentages)
|
|
|
|
|
|
|
|
Q3 2017
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Share- Based Comp. (1)
|
|
|
|
Amort. of Intangibles (2)
|
|
|
|
Tax- Related Items (4)
|
|
|
|
Spin- Related Costs (5)
|
|
|
|
Upfront & Milestone Payments (6)
|
|
|
|
Acquisition- Related Costs (7)
|
|
|
|
Sanofi Acquisition (8)
|
|
|
|
Non-GAAP
|
|
|
|
Total revenues
|
|
|
|
291.6
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
291.6
|
|
|
|
|
Cost of sales
|
|
|
|
(65.5
|
)
|
|
|
|
-
|
|
|
|
1.4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(64.1
|
)
|
|
|
|
R&D
|
|
|
|
(70.1
|
)
|
|
|
|
1.5
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.9
|
|
|
|
10.6
|
|
|
|
2.3
|
|
|
|
-
|
|
|
|
(54.8
|
)
|
|
|
|
SG&A
|
|
|
|
(52.2
|
)
|
|
|
|
7.7
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5.0
|
|
|
|
-
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
(39.3
|
)
|
|
|
|
Operating margin
|
|
|
|
35.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45.7
|
%
|
|
|
|
Other income (expense), net
|
|
|
|
1.2
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1.2
|
|
|
|
|
Income before taxes
|
|
|
|
105.0
|
|
|
|
|
9.2
|
|
|
|
1.4
|
|
|
|
-
|
|
|
|
5.9
|
|
|
|
10.6
|
|
|
|
2.5
|
|
|
|
-
|
|
|
|
134.6
|
|
|
|
|
Income tax expense (benefit) (9)
|
|
|
|
37.1
|
|
|
|
|
3.2
|
|
|
|
0.5
|
|
|
|
-
|
|
|
|
2.1
|
|
|
|
3.7
|
|
|
|
0.9
|
|
|
|
-
|
|
|
|
47.5
|
|
|
|
|
Tax rate
|
|
|
|
35.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.3
|
%
|
|
|
|
Net income
|
|
|
|
67.9
|
|
|
|
|
6.0
|
|
|
|
0.9
|
|
|
|
-
|
|
|
|
3.8
|
|
|
|
6.9
|
|
|
|
1.6
|
|
|
|
-
|
|
|
|
87.1
|
|
|
|
|
Diluted EPS
|
|
|
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.80
|
|
|
|
|
(In millions, except EPS and percentages)
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2017
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
Share- Based Comp. (1)
|
|
|
|
Amort. of Intangibles (2)
|
|
|
|
Tax- Related Items (4)
|
|
|
|
Spin- Related Costs (5)
|
|
|
|
Upfront & Milestone Payments (6)
|
|
|
|
Acquisition- Related Costs (7)
|
|
|
|
Sanofi Acquisition (8)
|
|
|
|
Non-GAAP
|
|
|
|
Total revenues
|
|
|
|
1,168.5
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,168.5
|
|
|
|
|
Cost of sales
|
|
|
|
(279.6
|
)
|
|
|
|
-
|
|
|
|
5.7
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(273.9
|
)
|
|
|
|
R&D
|
|
|
|
(224.6
|
)
|
|
|
|
5.0
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
3.7
|
|
|
|
16.9
|
|
|
|
9.9
|
|
|
|
-
|
|
|
|
(189.1
|
)
|
|
|
|
SG&A
|
|
|
|
(217.1
|
)
|
|
|
|
27.0
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
16.4
|
|
|
|
-
|
|
|
|
9.3
|
|
|
|
2.0
|
|
|
|
(162.4
|
)
|
|
|
|
Operating margin
|
|
|
|
38.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46.5
|
%
|
|
|
|
Other income (expense), net
|
|
|
|
4.7
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.7
|
|
|
|
|
Income before taxes
|
|
|
|
451.9
|
|
|
|
|
32.0
|
|
|
|
5.7
|
|
|
|
-
|
|
|
|
|
20.1
|
|
|
|
16.9
|
|
|
|
19.2
|
|
|
|
2.0
|
|
|
|
547.8
|
|
|
|
|
Income tax expense (benefit) (9)
|
|
|
|
96.3
|
|
|
|
|
10.9
|
|
|
|
1.9
|
|
|
|
58.9
|
|
|
|
|
6.9
|
|
|
|
5.8
|
|
|
|
6.6
|
|
|
|
0.7
|
|
|
|
188.0
|
|
|
|
|
Tax rate
|
|
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.3
|
%
|
|
|
|
Net income
|
|
|
|
355.6
|
|
|
|
|
21.1
|
|
|
|
3.8
|
|
|
|
(58.9
|
)
|
|
|
|
13.2
|
|
|
|
11.1
|
|
|
|
12.6
|
|
|
|
1.3
|
|
|
|
359.8
|
|
|
|
|
Diluted EPS
|
|
|
|
3.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.32
|
|
|
|
|
(In millions, except EPS and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
Share-Based Comp. (1)
|
|
|
|
|
Amort. of Intangibles (2)
|
|
|
|
|
Biogen Cambridge Mfr. Facility(3)
|
|
|
|
|
Tax-Related Items (4)
|
|
|
|
|
Upfront & Milestone Payments (6)
|
|
|
|
|
Non-GAAP
|
|
|
|
Total revenues
|
|
|
|
|
|
|
|
256.2
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
256.2
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
|
(75.7
|
)
|
|
|
|
|
1.4
|
|
|
|
|
1.4
|
|
|
|
|
11.1
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(61.8
|
)
|
|
|
|
R&D
|
|
|
|
|
|
|
|
(63.2
|
)
|
|
|
|
|
1.4
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
1.3
|
|
|
|
|
(60.5
|
)
|
|
|
|
SG&A
|
|
|
|
|
|
|
|
(33.0
|
)
|
|
|
|
|
1.2
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(31.8
|
)
|
|
|
|
Operating margin
|
|
|
|
|
|
|
|
32.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39.9
|
%
|
|
|
|
Other income (expense), net
|
|
|
|
|
|
|
|
0.6
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
0.6
|
|
|
|
|
Income before taxes
|
|
|
|
|
|
|
|
84.9
|
|
|
|
|
|
4.0
|
|
|
|
|
1.4
|
|
|
|
|
11.1
|
|
|
|
|
-
|
|
|
|
|
|
1.3
|
|
|
|
|
102.7
|
|
|
|
|
Income tax expense (benefit) (9)
|
|
|
|
|
|
|
|
(144.0
|
)
|
|
|
|
|
1.4
|
|
|
|
|
0.5
|
|
|
|
|
3.8
|
|
|
|
|
172.8
|
|
|
|
|
|
0.4
|
|
|
|
|
34.9
|
|
|
|
|
Tax rate
|
|
|
|
|
|
|
|
(169.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.0
|
%
|
|
|
|
Net income
|
|
|
|
|
|
|
|
228.9
|
|
|
|
|
|
2.6
|
|
|
|
|
0.9
|
|
|
|
|
7.3
|
|
|
|
|
(172.8
|
)
|
|
|
|
|
0.9
|
|
|
|
|
67.8
|
|
|
|
|
Diluted EPS
|
|
|
|
|
|
|
|
2.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.63
|
|
|
|
|
(In millions, except EPS and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2016
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
Share-Based Comp. (1)
|
|
|
|
|
Amort. of Intangibles (2)
|
|
|
|
|
Biogen Cambridge Mfr. Facility (3)
|
|
|
|
|
Tax-Related Items (4)
|
|
|
|
|
Upfront & Milestone Payments (6)
|
|
|
|
|
Non-GAAP
|
|
|
|
Total revenues
|
|
|
|
|
|
|
229.2
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
229.2
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
(71.5
|
)
|
|
|
|
|
3.0
|
|
|
|
|
1.4
|
|
|
|
|
14.2
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(52.9
|
)
|
|
|
|
R&D
|
|
|
|
|
|
|
(42.7
|
)
|
|
|
|
|
0.8
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(41.9
|
)
|
|
|
|
SG&A
|
|
|
|
|
|
|
(35.7
|
)
|
|
|
|
|
1.2
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(34.5
|
)
|
|
|
|
Operating margin
|
|
|
|
|
|
|
34.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43.6
|
%
|
|
|
|
Other income (expense), net
|
|
|
|
|
|
|
(0.1
|
)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(0.1
|
)
|
|
|
|
Income before taxes
|
|
|
|
|
|
|
79.2
|
|
|
|
|
|
5.0
|
|
|
|
|
1.4
|
|
|
|
|
14.2
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
99.8
|
|
|
|
|
Income tax expense (benefit) (9)
|
|
|
|
|
|
|
(1.3
|
)
|
|
|
|
|
1.7
|
|
|
|
|
0.5
|
|
|
|
|
4.9
|
|
|
|
|
28.4
|
|
|
|
|
|
-
|
|
|
|
|
34.2
|
|
|
|
|
Tax rate
|
|
|
|
|
|
|
(1.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.3
|
%
|
|
|
|
Net income
|
|
|
|
|
|
|
80.5
|
|
|
|
|
|
3.3
|
|
|
|
|
0.9
|
|
|
|
|
9.3
|
|
|
|
|
(28.4
|
)
|
|
|
|
|
-
|
|
|
|
|
65.6
|
|
|
|
|
Diluted EPS
|
|
|
|
|
|
|
0.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.61
|
|
|
|
|
(In millions, except EPS and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
Share-Based Comp. (1)
|
|
|
|
|
Amort. of Intangibles (2)
|
|
|
|
|
Biogen Cambridge Mfr. Facility (3)
|
|
|
|
|
Tax-Related Items (4)
|
|
|
|
|
Upfront & Milestone Payments (6)
|
|
|
|
|
Non-GAAP
|
|
|
|
Total revenues
|
|
|
|
|
|
|
887.4
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
887.4
|
|
|
|
|
Cost of sales
|
|
|
|
|
|
|
(237.9
|
)
|
|
|
|
|
7.3
|
|
|
|
|
4.8
|
|
|
|
|
41.1
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(184.7
|
)
|
|
|
|
R&D
|
|
|
|
|
|
|
(210.1
|
)
|
|
|
|
|
3.7
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
1.3
|
|
|
|
|
(205.1
|
)
|
|
|
|
SG&A
|
|
|
|
|
|
|
(147.0
|
)
|
|
|
|
|
4.3
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(142.7
|
)
|
|
|
|
Operating margin
|
|
|
|
|
|
|
33.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40.0
|
%
|
|
|
|
Other income (expense), net
|
|
|
|
|
|
|
(0.5
|
)
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(0.5
|
)
|
|
|
|
Income before taxes
|
|
|
|
|
|
|
291.9
|
|
|
|
|
|
15.3
|
|
|
|
|
4.8
|
|
|
|
|
41.1
|
|
|
|
|
-
|
|
|
|
|
|
1.3
|
|
|
|
|
354.4
|
|
|
|
|
Income tax expense (benefit) (9)
|
|
|
|
|
|
|
(147.7
|
)
|
|
|
|
|
5.2
|
|
|
|
|
1.7
|
|
|
|
|
14.1
|
|
|
|
|
247.3
|
|
|
|
|
|
0.4
|
|
|
|
|
121.0
|
|
|
|
|
Tax rate
|
|
|
|
|
|
|
(50.6
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.1
|
%
|
|
|
|
Net income
|
|
|
|
|
|
|
439.6
|
|
|
|
|
|
10.1
|
|
|
|
|
3.1
|
|
|
|
|
27.0
|
|
|
|
|
(247.3
|
)
|
|
|
|
|
0.9
|
|
|
|
|
233.4
|
|
|
|
|
Diluted EPS
|
|
|
|
|
|
|
4.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.17
|
|
|
|
|
Use of Non-GAAP Financial Measures
We supplement our consolidated financial statements presented on a GAAP
basis by providing additional measures which may be considered
"Non-GAAP" financial measures under applicable SEC rules. We believe
that the disclosure of these Non-GAAP financial measures provides
additional insight into the ongoing economics of our business and
reflects how we manage our business internally, set operational goals
and forms the basis of our management incentive programs. These Non-GAAP
financial measures are not in accordance with generally accepted
accounting principles in the United States and should not be viewed in
isolation or as a substitute for reported, or GAAP, financial measures.
Our Non-GAAP financial measures exclude the following items from
reported GAAP financial measures:
1. Share-Based Compensation Expense We
exclude the costs associated with incentive stock and employee stock
purchase plans we maintain for the benefit of our officers, directors,
and employees. For the periods prior to February 1, 2017, our share
based compensation expense was derived solely from equity awards granted
by Biogen to the company's employees. Share-based compensation expense
subsequent to the separation relates to equity awards granted under our
share-based plans to our officers, directors, and employees including
those awards that converted from Biogen.
2. Amortization of Developed Technology Intangible
Assets We exclude the amortization of intangible assets to
facilitate an evaluation of current and past operating performance,
particularly in terms of cash returns, and is similar to how management
internally assesses performance. The developed technology intangibles
primarily relate to approval milestones for ALPROLIX paid to the former
Syntonix shareholders.
3. Biogen Cambridge Manufacturing Facility Shutdown We
exclude costs associated with Biogen's Cambridge manufacturing facility
shutdown, which was primarily dedicated to hemophilia manufacturing. On
December 31, 2016, the facility was subleased by Brammer Bio, LLC and is
no longer used for hemophilia manufacturing. Management believes these
costs are not representative of our ongoing operating results.
4. Tax-Related Items We had
established a valuation allowance as of December 31, 2015 given our
cumulative losses and uncertainty about our cost structure as a
standalone company. During 2016, we determined that it is more likely
than not that our deferred tax assets will be realizable and released
our valuation allowance. Management believes the release of the
valuation allowance is not representative of our ongoing operating
results. On December 22, 2017, the US government enacted comprehensive
tax legislation which reduces the corporate tax rate to 21% from 35%,
effective January 1, 2018. Consequently, we have recorded a one-time
decrease related to our net deferred tax liabilities with a
corresponding net deferred income tax benefit for the year ended
December 31, 2017.
5. Spin-Related Costs In connection
with our separation from Biogen, we have incurred certain separation
related expenses, which management believes are not representative of
our ongoing operations.
6. Upfront and Milestone Payments We
exclude costs associated with upfront and milestone payments relating to
collaborative arrangements as management believes these costs are
uncertain, result in different payment and expense recognition patterns
than internal R&D activities, and are not representative of our ongoing
operating results.
7. Acquisition-Related Costs In
connection with our acquisition of True North Therapeutics, we have
incurred certain acquisition related expenses, which management believes
are not representative of our ongoing operations. These expenses include
banker, legal, tax, and other expenses. In addition, we exclude costs
associated with quarterly remeasurement of contingent consideration.
8. Sanofi Acquisition In connection
with our pending acquisition by Sanofi we have incurred certain
acquisition related expenses, which management believes are not
representative of our ongoing operations.
9. Tax Effects of the Above Non-GAAP Adjustments We
include an adjustment to reflect the related tax effect of all
reconciling items within our reconciliation of our GAAP to Non-GAAP
adjusted net income.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180213006375/en/
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