Document
P14MP14MIndefinite until commercializationIndefinite22700000false--12-31Q1202000008750450.02530.02400.00050.00050.0520.04050.03625P15MP1MP12MP15MP1MP7MP18YP23YP28YP4YP13YP15Y000.0010.001 0000875045 2020-01-01 2020-03-31 0000875045 2020-04-22 0000875045 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-03-31 0000875045 2019-01-01 2019-03-31 0000875045 us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-03-31 0000875045 biib:Revenuesfromanticd20therapeuticprogramsMember 2020-01-01 2020-03-31 0000875045 us-gaap:ProductMember 2020-01-01 2020-03-31 0000875045 biib:Revenuesfromanticd20therapeuticprogramsMember 2019-01-01 2019-03-31 0000875045 us-gaap:ProductMember 2019-01-01 2019-03-31 0000875045 biib:DenmarkManufacturingOperationsMember 2019-01-01 2019-03-31 0000875045 2019-12-31 0000875045 2020-03-31 0000875045 2018-12-31 0000875045 2019-03-31 0000875045 us-gaap:TreasuryStockMember 2020-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000875045 us-gaap:PreferredStockMember 2020-03-31 0000875045 biib:December2019ShareRepurchaseProgramMember 2020-01-01 2020-03-31 0000875045 us-gaap:RetainedEarningsMember 2020-03-31 0000875045 biib:December2019ShareRepurchaseProgramMember us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000875045 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000875045 biib:March2019ShareRepurchaseProgramMember 2020-01-01 2020-03-31 0000875045 us-gaap:PreferredStockMember 2019-12-31 0000875045 biib:March2019ShareRepurchaseProgramMember us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000875045 biib:December2019ShareRepurchaseProgramMember us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000875045 biib:March2019ShareRepurchaseProgramMember us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000875045 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000875045 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000875045 biib:March2019ShareRepurchaseProgramMember us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000875045 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000875045 us-gaap:NoncontrollingInterestMember 2020-01-01 2020-03-31 0000875045 us-gaap:CommonStockMember 2020-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000875045 biib:December2019ShareRepurchaseProgramMember us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000875045 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000875045 us-gaap:CommonStockMember 2019-12-31 0000875045 us-gaap:TreasuryStockMember 2019-12-31 0000875045 us-gaap:RetainedEarningsMember 2019-12-31 0000875045 biib:March2019ShareRepurchaseProgramMember us-gaap:CommonStockMember 2020-01-01 2020-03-31 0000875045 biib:December2019ShareRepurchaseProgramMember us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000875045 us-gaap:NoncontrollingInterestMember 2019-12-31 0000875045 us-gaap:NoncontrollingInterestMember 2020-03-31 0000875045 biib:A2018ShareRepurchaseProgramMember us-gaap:ParentMember 2019-01-01 2019-03-31 0000875045 us-gaap:PreferredStockMember 2019-03-31 0000875045 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-03-31 0000875045 biib:A2018ShareRepurchaseProgramMember us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000875045 us-gaap:PreferredStockMember 2018-12-31 0000875045 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000875045 biib:A2018ShareRepurchaseProgramMember 2019-01-01 2019-03-31 0000875045 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000875045 us-gaap:RetainedEarningsMember 2018-12-31 0000875045 us-gaap:TreasuryStockMember 2019-03-31 0000875045 us-gaap:NoncontrollingInterestMember 2018-12-31 0000875045 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000875045 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000875045 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000875045 us-gaap:ParentMember 2019-01-01 2019-03-31 0000875045 us-gaap:CommonStockMember 2018-12-31 0000875045 us-gaap:CommonStockMember 2019-03-31 0000875045 biib:A2018ShareRepurchaseProgramMember us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000875045 biib:A2018ShareRepurchaseProgramMember us-gaap:CommonStockMember 2019-01-01 2019-03-31 0000875045 us-gaap:TreasuryStockMember 2018-12-31 0000875045 us-gaap:ParentMember 2019-03-31 0000875045 us-gaap:ParentMember 2018-12-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000875045 us-gaap:RetainedEarningsMember 2019-03-31 0000875045 us-gaap:NoncontrollingInterestMember 2019-03-31 0000875045 biib:A2018ShareRepurchaseProgramMember us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000875045 biib:NightstarMember 2019-06-07 0000875045 biib:BIIB118Member 2020-03-01 2020-03-31 0000875045 biib:NightstarMember us-gaap:ResearchAndDevelopmentExpenseMember 2019-04-01 2019-06-30 0000875045 biib:NightstarMember 2019-04-01 2019-06-30 0000875045 biib:NightstarMember 2019-06-30 0000875045 2019-06-01 2019-06-30 0000875045 biib:BIIB111Member biib:NightstarMember 2019-06-07 0000875045 biib:NightstarMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-04-01 2019-06-30 0000875045 biib:NightstarMember biib:PostacquisitionequitycompensationMember 2019-04-01 2019-06-30 0000875045 biib:BIIB112Member biib:NightstarMember 2019-06-07 0000875045 biib:DenmarkManufacturingOperationsMember 2019-08-01 0000875045 biib:DenmarkManufacturingOperationsMember 2020-01-01 2020-03-31 0000875045 2019-08-01 0000875045 biib:DenmarkManufacturingOperationsMember 2020-03-31 0000875045 biib:DenmarkManufacturingOperationsMember 2019-03-31 0000875045 biib:SPINRAZAMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:TysabriProductMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 us-gaap:ProductMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:TecfideraMember country:US 2019-01-01 2019-03-31 0000875045 biib:IMRALDIMember country:US 2020-01-01 2020-03-31 0000875045 biib:SPINRAZAMember country:US 2019-01-01 2019-03-31 0000875045 biib:FAMPYRAMember country:US 2020-01-01 2020-03-31 0000875045 biib:SPINRAZAMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:TysabriProductMember country:US 2019-01-01 2019-03-31 0000875045 biib:InterferonMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:BiosimilarsMember 2019-01-01 2019-03-31 0000875045 biib:BENEPALIMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:MSProductRevenuesMember country:US 2020-01-01 2020-03-31 0000875045 biib:BENEPALIMember 2020-01-01 2020-03-31 0000875045 biib:IMRALDIMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:InterferonMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:IMRALDIMember country:US 2019-01-01 2019-03-31 0000875045 biib:BENEPALIMember country:US 2019-01-01 2019-03-31 0000875045 biib:FAMPYRAMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:MSProductRevenuesMember 2020-01-01 2020-03-31 0000875045 biib:InterferonMember country:US 2020-01-01 2020-03-31 0000875045 biib:BiosimilarsMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:IMRALDIMember 2020-01-01 2020-03-31 0000875045 biib:FUMADERMMember 2020-01-01 2020-03-31 0000875045 biib:BiosimilarsMember 2020-01-01 2020-03-31 0000875045 biib:FAMPYRAMember 2020-01-01 2020-03-31 0000875045 biib:FLIXABIMember 2019-01-01 2019-03-31 0000875045 biib:FLIXABIMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:MSProductRevenuesMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:InterferonMember country:US 2019-01-01 2019-03-31 0000875045 biib:FLIXABIMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:SPINRAZAMember 2020-01-01 2020-03-31 0000875045 biib:MSProductRevenuesMember 2019-01-01 2019-03-31 0000875045 biib:FLIXABIMember country:US 2019-01-01 2019-03-31 0000875045 biib:TysabriProductMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:SPINRAZAMember country:US 2020-01-01 2020-03-31 0000875045 biib:BiosimilarsMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:TecfideraMember 2020-01-01 2020-03-31 0000875045 biib:FUMADERMMember 2019-01-01 2019-03-31 0000875045 biib:BENEPALIMember 2019-01-01 2019-03-31 0000875045 biib:TecfideraMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:BENEPALIMember country:US 2020-01-01 2020-03-31 0000875045 biib:TecfideraMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:MSProductRevenuesMember country:US 2019-01-01 2019-03-31 0000875045 biib:BiosimilarsMember country:US 2020-01-01 2020-03-31 0000875045 biib:IMRALDIMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 us-gaap:ProductMember country:US 2020-01-01 2020-03-31 0000875045 biib:SPINRAZAMember 2019-01-01 2019-03-31 0000875045 biib:IMRALDIMember 2019-01-01 2019-03-31 0000875045 biib:TysabriProductMember 2020-01-01 2020-03-31 0000875045 biib:TysabriProductMember 2019-01-01 2019-03-31 0000875045 biib:FLIXABIMember 2020-01-01 2020-03-31 0000875045 biib:InterferonMember 2020-01-01 2020-03-31 0000875045 biib:FUMADERMMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:FLIXABIMember country:US 2020-01-01 2020-03-31 0000875045 biib:FAMPYRAMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:FUMADERMMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:FAMPYRAMember country:US 2019-01-01 2019-03-31 0000875045 biib:InterferonMember 2019-01-01 2019-03-31 0000875045 biib:FUMADERMMember country:US 2019-01-01 2019-03-31 0000875045 us-gaap:ProductMember country:US 2019-01-01 2019-03-31 0000875045 biib:FAMPYRAMember 2019-01-01 2019-03-31 0000875045 us-gaap:ProductMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:BENEPALIMember us-gaap:NonUsMember 2020-01-01 2020-03-31 0000875045 biib:TecfideraMember 2019-01-01 2019-03-31 0000875045 biib:MSProductRevenuesMember us-gaap:NonUsMember 2019-01-01 2019-03-31 0000875045 biib:TysabriProductMember country:US 2020-01-01 2020-03-31 0000875045 biib:TecfideraMember country:US 2020-01-01 2020-03-31 0000875045 biib:BiosimilarsMember country:US 2019-01-01 2019-03-31 0000875045 biib:FUMADERMMember country:US 2020-01-01 2020-03-31 0000875045 biib:BioverativMember us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-03-31 0000875045 biib:DistributorOneMember 2019-01-01 2019-03-31 0000875045 biib:DistributorOneMember 2020-01-01 2020-03-31 0000875045 biib:DistributorTwoMember 2020-01-01 2020-03-31 0000875045 biib:OthercorporaterevenuesMember 2020-03-31 0000875045 biib:DistributorTwoMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccountsReceivableMember 2019-12-31 0000875045 us-gaap:OtherCurrentLiabilitiesMember 2019-12-31 0000875045 us-gaap:OtherCurrentLiabilitiesMember 2020-03-31 0000875045 us-gaap:AccountsReceivableMember 2020-03-31 0000875045 biib:RocheGroupGenentechMember 2020-01-01 2020-03-31 0000875045 biib:RocheGroupGenentechMember 2019-01-01 2019-03-31 0000875045 us-gaap:RoyaltyMember 2020-01-01 2020-03-31 0000875045 biib:ZINBRYTAMember us-gaap:CollaborativeArrangementMember 2020-01-01 2020-03-31 0000875045 biib:OthercorporaterevenuesMember 2020-01-01 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:CollaborativeArrangementMember 2019-01-01 2019-03-31 0000875045 biib:ZINBRYTAMember us-gaap:CollaborativeArrangementMember 2019-01-01 2019-03-31 0000875045 us-gaap:RoyaltyMember 2019-01-01 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:CollaborativeArrangementMember 2020-01-01 2020-03-31 0000875045 biib:OthercorporaterevenuesMember 2019-01-01 2019-03-31 0000875045 biib:ReserveforCashDiscountsMember 2020-03-31 0000875045 us-gaap:SalesReturnsAndAllowancesMember 2020-03-31 0000875045 biib:ContractualAdjustmentsMember 2020-01-01 2020-03-31 0000875045 us-gaap:SalesReturnsAndAllowancesMember 2020-01-01 2020-03-31 0000875045 biib:ContractualAdjustmentsMember 2019-12-31 0000875045 biib:ReserveforCashDiscountsMember 2020-01-01 2020-03-31 0000875045 biib:ReserveforCashDiscountsMember 2019-12-31 0000875045 biib:ContractualAdjustmentsMember 2020-03-31 0000875045 us-gaap:SalesReturnsAndAllowancesMember 2019-12-31 0000875045 biib:TGNMember us-gaap:InProcessResearchAndDevelopmentMember 2020-03-31 0000875045 biib:AVONEXMember us-gaap:DevelopedTechnologyRightsMember 2020-03-31 0000875045 biib:TysabriProductMember biib:InLicensedPatentsMember 2020-03-31 0000875045 biib:OutLicensedPatentsMember 2019-12-31 0000875045 us-gaap:TrademarksAndTradeNamesMember 2020-03-31 0000875045 us-gaap:InProcessResearchAndDevelopmentMember 2020-03-31 0000875045 biib:OutLicensedPatentsMember 2020-03-31 0000875045 us-gaap:InProcessResearchAndDevelopmentMember 2019-12-31 0000875045 us-gaap:TrademarksAndTradeNamesMember 2019-12-31 0000875045 us-gaap:InProcessResearchAndDevelopmentMember 2020-01-01 2020-03-31 0000875045 srt:MaximumMember biib:InLicensedPatentsMember 2020-01-01 2020-03-31 0000875045 srt:MinimumMember biib:InLicensedPatentsMember 2020-01-01 2020-03-31 0000875045 srt:MinimumMember biib:OutLicensedPatentsMember 2020-01-01 2020-03-31 0000875045 us-gaap:TrademarksAndTradeNamesMember 2020-01-01 2020-03-31 0000875045 srt:MaximumMember biib:OutLicensedPatentsMember 2020-01-01 2020-03-31 0000875045 srt:MinimumMember us-gaap:DevelopedTechnologyRightsMember 2020-01-01 2020-03-31 0000875045 srt:MaximumMember us-gaap:DevelopedTechnologyRightsMember 2020-01-01 2020-03-31 0000875045 us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 srt:WeightedAverageMember us-gaap:MeasurementInputDiscountRateMember 2020-03-31 0000875045 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000875045 biib:SeniorNotesFivePointTwoPercentDueTwentyFortyFiveMember 2019-12-31 0000875045 biib:SeniorNotesFivePointTwoPercentDueTwentyFortyFiveMember 2020-03-31 0000875045 biib:SeniorNotesFourPointZeroFivePercentDueTwentyTwentyFiveMember 2019-12-31 0000875045 biib:SeniorNotesThreePointSixTwoFivePercentDueTwentyTwentyTwoMember 2020-03-31 0000875045 biib:SeniorNotesFourPointZeroFivePercentDueTwentyTwentyFiveMember 2020-03-31 0000875045 biib:SeniorNotesThreePointSixTwoFivePercentDueTwentyTwentyTwoMember 2019-12-31 0000875045 biib:SeniorNotesTwoPointNinePercentDueTwentyTwentyMember 2020-03-31 0000875045 biib:SeniorNotesTwoPointNinePercentDueTwentyTwentyMember 2019-12-31 0000875045 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:AssetBackedSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:USTreasuryAndGovernmentMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000875045 us-gaap:FairValueMeasurementsRecurringMember 2019-06-30 0000875045 us-gaap:FairValueMeasurementsRecurringMember 2019-03-31 0000875045 us-gaap:FairValueMeasurementsRecurringMember 2018-06-30 0000875045 srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2020-03-31 0000875045 srt:MinimumMember us-gaap:MeasurementInputDiscountRateMember 2020-03-31 0000875045 biib:MortgageAndOtherAssetBackedSecuritiesNonCurrentMember 2019-12-31 0000875045 us-gaap:EquitySecuritiesMember 2019-12-31 0000875045 biib:CorporateDebtSecuritiesCurrentMember 2019-12-31 0000875045 biib:MortgageAndOtherAssetBackedSecuritiesCurrentMember 2019-12-31 0000875045 biib:GovernmentSecuritiesCurrentMember 2019-12-31 0000875045 biib:CorporateDebtSecuritiesNonCurrentMember 2019-12-31 0000875045 biib:GovernmentSecuritiesNonCurrentMember 2019-12-31 0000875045 biib:CorporateDebtSecuritiesNonCurrentMember 2020-03-31 0000875045 biib:MortgageAndOtherAssetBackedSecuritiesNonCurrentMember 2020-03-31 0000875045 biib:GovernmentSecuritiesCurrentMember 2020-03-31 0000875045 biib:CorporateDebtSecuritiesCurrentMember 2020-03-31 0000875045 biib:MortgageAndOtherAssetBackedSecuritiesCurrentMember 2020-03-31 0000875045 biib:GovernmentSecuritiesNonCurrentMember 2020-03-31 0000875045 us-gaap:EquitySecuritiesMember 2020-03-31 0000875045 us-gaap:CommercialPaperMember 2020-03-31 0000875045 us-gaap:MoneyMarketFundsMember 2019-12-31 0000875045 us-gaap:DebtSecuritiesMember 2019-12-31 0000875045 us-gaap:DebtSecuritiesMember 2020-03-31 0000875045 us-gaap:CommercialPaperMember 2019-12-31 0000875045 us-gaap:RepurchaseAgreementsMember 2020-03-31 0000875045 us-gaap:MoneyMarketFundsMember 2020-03-31 0000875045 us-gaap:RepurchaseAgreementsMember 2019-12-31 0000875045 us-gaap:OtherNoncurrentAssetsMember biib:StrategicInvestmentsMember 2019-12-31 0000875045 biib:StrategicInvestmentsMember 2020-03-31 0000875045 us-gaap:AccruedLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 us-gaap:OtherCurrentAssetsMember us-gaap:NondesignatedMember 2020-03-31 0000875045 us-gaap:OtherCurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueHedgingMember 2020-03-31 0000875045 us-gaap:AccruedLiabilitiesMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2019-12-31 0000875045 us-gaap:OtherCurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 us-gaap:OtherNoncurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:OtherNoncurrentAssetsMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 us-gaap:AccruedLiabilitiesMember us-gaap:NondesignatedMember 2019-12-31 0000875045 us-gaap:OtherCurrentAssetsMember us-gaap:NondesignatedMember 2019-12-31 0000875045 us-gaap:AccruedLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:FairValueHedgingMember 2019-12-31 0000875045 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NetInvestmentHedgingMember 2020-03-31 0000875045 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2019-12-31 0000875045 us-gaap:AccruedLiabilitiesMember us-gaap:NondesignatedMember 2020-03-31 0000875045 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:CashFlowHedgingMember 2020-03-31 0000875045 currency:GBP us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 currency:JPY us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 currency:CHF us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 currency:GBP us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 currency:CAD us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 currency:CAD us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 currency:EUR us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 currency:EUR us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 currency:CHF us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-12-31 0000875045 currency:JPY us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:ForeignExchangeContractMember biib:CashflowsrevenueMember us-gaap:SalesMember 2020-01-01 2020-03-31 0000875045 us-gaap:ForeignExchangeContractMember biib:CashflowsoperatingexpensesMember us-gaap:OperatingExpenseMember 2020-01-01 2020-03-31 0000875045 us-gaap:ForeignExchangeContractMember biib:CashflowsrevenueMember us-gaap:SalesMember 2019-01-01 2019-03-31 0000875045 us-gaap:ForeignExchangeContractMember biib:CashflowsoperatingexpensesMember us-gaap:OperatingExpenseMember 2019-01-01 2019-03-31 0000875045 us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-03-31 0000875045 us-gaap:NetInvestmentHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2020-01-01 2020-03-31 0000875045 us-gaap:NetInvestmentHedgingMember 2020-01-01 2020-03-31 0000875045 us-gaap:NetInvestmentHedgingMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-03-31 0000875045 biib:ShorttermderivativeMember 2020-03-31 0000875045 us-gaap:NondesignatedMember 2020-03-31 0000875045 us-gaap:NondesignatedMember 2019-12-31 0000875045 us-gaap:NetInvestmentHedgingMember 2019-01-01 2019-12-31 0000875045 biib:SamsungBiosimilarAgreementMember 2018-11-01 2018-11-30 0000875045 biib:SamsungBiosimilarAgreementMember 2020-03-31 0000875045 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-03-31 0000875045 us-gaap:NetInvestmentHedgingMember 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2019-03-31 0000875045 us-gaap:NetInvestmentHedgingMember 2019-12-31 0000875045 srt:MinimumMember 2020-01-01 2020-03-31 0000875045 srt:MinimumMember 2019-01-01 2019-12-31 0000875045 biib:ShorttermderivativeMember 2020-01-01 2020-03-31 0000875045 srt:MaximumMember 2020-01-01 2020-03-31 0000875045 srt:MaximumMember 2019-01-01 2019-12-31 0000875045 biib:SolothurnSwitzerlandMember 2020-03-31 0000875045 biib:SolothurnSwitzerlandMember 2019-12-31 0000875045 us-gaap:AccumulatedTranslationAdjustmentMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000875045 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-03-31 0000875045 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-03-31 0000875045 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000875045 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0000875045 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2018-12-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2019-03-31 0000875045 us-gaap:AccumulatedTranslationAdjustmentMember 2019-03-31 0000875045 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0000875045 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-01-01 2019-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2020-01-01 2020-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-01-01 2019-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2019-01-01 2019-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-01-01 2020-03-31 0000875045 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000875045 biib:March2019ShareRepurchaseProgramMember us-gaap:SubsequentEventMember 2020-04-01 2020-04-22 0000875045 biib:December2019ShareRepurchaseProgramMember 2019-12-31 0000875045 biib:March2019ShareRepurchaseProgramMember 2019-03-31 0000875045 biib:March2019ShareRepurchaseProgramMember 2020-03-31 0000875045 us-gaap:AccumulatedTranslationAdjustmentMember 2019-12-31 0000875045 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2019-12-31 0000875045 us-gaap:AccumulatedTranslationAdjustmentMember 2020-01-01 2020-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2019-12-31 0000875045 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2020-03-31 0000875045 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0000875045 us-gaap:AccumulatedOtherComprehensiveIncomeLossDerivativeQualifyingAsHedgeExcludedComponentIncludingPortionAttributableToNoncontrollingInterestMember 2020-01-01 2020-03-31 0000875045 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-01-01 2020-03-31 0000875045 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-01-01 2020-03-31 0000875045 us-gaap:AccumulatedTranslationAdjustmentMember 2020-03-31 0000875045 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2020-03-31 0000875045 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-12-31 0000875045 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-12-31 0000875045 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-03-31 0000875045 biib:TimeVestedRestrictedStockUnitsMember 2020-01-01 2020-03-31 0000875045 biib:MarketStockUnitsMember 2019-01-01 2019-03-31 0000875045 biib:PerformanceStockUnitsSettledinStockMember 2020-01-01 2020-03-31 0000875045 biib:PerformanceStockUnitsSettledinStockMember 2019-01-01 2019-03-31 0000875045 biib:MarketStockUnitsMember 2020-01-01 2020-03-31 0000875045 biib:TimeVestedRestrictedStockUnitsMember 2019-01-01 2019-03-31 0000875045 biib:PerformanceStockUnitsSettledinCashMember 2020-01-01 2020-03-31 0000875045 biib:TimeVestedRestrictedStockUnitsMember 2019-01-01 2019-03-31 0000875045 biib:EmployeeStockPurchasePlanMember 2020-01-01 2020-03-31 0000875045 biib:TimeVestedRestrictedStockUnitsMember 2020-01-01 2020-03-31 0000875045 us-gaap:PerformanceSharesMember 2019-01-01 2019-03-31 0000875045 biib:EmployeeStockPurchasePlanMember 2019-01-01 2019-03-31 0000875045 biib:PerformanceStockUnitsSettledinCashMember 2019-01-01 2019-03-31 0000875045 biib:MarketStockUnitsMember 2020-01-01 2020-03-31 0000875045 biib:PerformanceStockUnitsSettledinStockMember 2020-01-01 2020-03-31 0000875045 biib:CashSettledPerformanceSharesMember 2020-01-01 2020-03-31 0000875045 biib:MarketStockUnitsMember 2019-01-01 2019-03-31 0000875045 us-gaap:PerformanceSharesMember 2020-01-01 2020-03-31 0000875045 biib:PerformanceStockUnitsSettledinStockMember 2019-01-01 2019-03-31 0000875045 biib:CashSettledPerformanceSharesMember 2019-01-01 2019-03-31 0000875045 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-03-31 0000875045 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-03-31 0000875045 us-gaap:ParentMember 2019-01-01 2019-03-31 0000875045 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-01-01 2019-03-31 0000875045 us-gaap:ParentMember 2020-01-01 2020-03-31 0000875045 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-01-01 2020-03-31 0000875045 biib:DenmarkManufacturingOperationsMember 2019-01-01 2019-12-31 0000875045 biib:AducanumabMember us-gaap:SellingGeneralAndAdministrativeExpensesMember biib:EisaiMember 2019-01-01 2019-03-31 0000875045 biib:AducanumabMember us-gaap:SellingGeneralAndAdministrativeExpensesMember biib:EisaiMember 2020-01-01 2020-03-31 0000875045 biib:AducanumabMember us-gaap:ResearchAndDevelopmentExpenseMember biib:EisaiMember 2020-01-01 2020-03-31 0000875045 biib:AducanumabMember us-gaap:ResearchAndDevelopmentExpenseMember biib:EisaiMember 2019-01-01 2019-03-31 0000875045 biib:EisaiMember 2020-01-01 2020-03-31 0000875045 biib:E2609andBAN2401Member us-gaap:SellingGeneralAndAdministrativeExpensesMember biib:EisaiMember 2020-01-01 2020-03-31 0000875045 biib:SangamoTherapeuticsInc.AgreementMember 2020-02-01 2020-02-29 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:InventoriesMember 2018-11-07 0000875045 biib:SamsungBiosimilarAgreementMember 2018-10-01 2018-12-31 0000875045 biib:SamsungBiosimilarAgreementMember 2020-01-01 2020-03-31 0000875045 biib:SkyhawkTherapeuticsMember 2019-01-01 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2019-01-01 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2019-12-31 0000875045 biib:SkyhawkTherapeuticsMember 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2020-01-01 2020-03-31 0000875045 biib:ElenbecestatCollaborationMember 2019-01-01 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:DevelopedTechnologyRightsMember 2020-01-01 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2020-01-31 0000875045 biib:SamsungBiosimilarAgreementMember 2018-11-07 0000875045 us-gaap:ResearchAndDevelopmentExpenseMember biib:UCBPharmaS.A.Member 2020-01-01 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:InventoriesMember 2020-01-01 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember 2019-12-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:DevelopedTechnologyRightsMember 2018-11-07 0000875045 biib:SkyhawkTherapeuticsMember 2019-10-01 2019-10-31 0000875045 biib:UCBPharmaS.A.Member 2020-01-01 2020-03-31 0000875045 biib:SamsungBiosimilarAgreementMember biib:DeferredtaxliabilityMember 2018-11-07 0000875045 biib:SkyhawkTherapeuticsMember 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:CollaborativeArrangementMember 2019-01-01 2019-03-31 0000875045 biib:EisaiMember 2019-01-01 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:InProcessResearchAndDevelopmentMember 2018-11-07 0000875045 biib:BAN2401Member 2019-01-01 2019-03-31 0000875045 biib:SamsungBiosimilarAgreementMember us-gaap:CollaborativeArrangementMember 2020-01-01 2020-03-31 0000875045 biib:RegulatoryMilestonesMember biib:NeurimmuneMember 2019-12-31 0000875045 biib:NeurimmuneMember 2018-05-01 2018-05-31 0000875045 biib:NeurimmuneMember 2017-10-01 2017-10-31 0000875045 biib:RegulatoryApprovalMilestoneMember biib:NeurimmuneMember 2019-12-31 0000875045 country:BR 2020-01-01 2020-03-31 biib:segment biib:Assets iso4217:USD xbrli:pure xbrli:shares iso4217:USD xbrli:shares iso4217:KRW


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-19311
https://cdn.kscope.io/9b1e7d958bc9a25c151263eef8c1adb2-biogenlogoa10.jpg
BIOGEN INC.
(Exact name of registrant as specified in its charter)
Delaware
 
33-0112644
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
225 Binney Street, Cambridge, MA 02142
(617679-2000
(Address, including zip code, and telephone number, including
area code, of registrant’s principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, $0.0005 par value
 
BIIB
 
The
Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  x    No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files):    Yes  x    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large accelerated filer
x
 
Accelerated filer
Non-accelerated filer
 
Smaller reporting company
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  x
The number of shares of the issuer’s Common Stock, $0.0005 par value, outstanding as of April 22, 2020, was 163,187,486 shares.
 



BIOGEN INC.
FORM 10-Q — Quarterly Report
For the Quarterly Period Ended March 31, 2020
TABLE OF CONTENTS
 
 
 
Page
 
 
 
Item 1.
Financial Statements (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
PART II — OTHER INFORMATION
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 6.
 
 


2


NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that are being made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995 (the Act) with the intention of obtaining the benefits of the “Safe Harbor” provisions of the Act. These forward-looking statements may be accompanied by such words as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “potential,” “possible,” “will,” “would” and other words and terms of similar meaning. Reference is made in particular to forward-looking statements regarding:
the anticipated amount, timing and accounting of revenues; contingent, milestone, royalty and other payments under licensing, collaboration, acquisition or divestiture agreements; tax positions and contingencies; collectability of receivables; pre-approval inventory; cost of sales; research and development costs; compensation and other selling, general and administrative expenses; amortization of intangible assets; foreign currency exchange risk; estimated fair value of assets and liabilities; and impairment assessments;
expectations, plans and prospects relating to sales, pricing, growth and launch of our marketed and pipeline products;
the timing, outcome and impact of administrative, regulatory, legal and other proceedings related to our patents and other proprietary and intellectual property rights, tax audits, assessments and settlements, pricing matters, sales and promotional practices, product liability and other matters;
patent terms, patent term extensions, patent office actions and expected availability and period of regulatory exclusivity;
the direct and indirect impact of COVID-19 on our business and operations, including sales, expenses, supply chain, manufacturing, research and development costs, clinical trials and employees;
the potential impact of increased product competition in the markets in which we compete, including increased competition from generics, biosimilars, prodrugs and products approved under abbreviated regulatory pathways;
our plans and investments in our core and emerging growth areas, as well as implementation of our corporate strategy;
the drivers for growing our business, including our plans and intention to commit resources relating to research and development programs and business development opportunities, as well as the potential benefits and results of certain business development transactions;
our ability to finance our operations and business initiatives and obtain funding for such activities;
the costs and timing of potential clinical trials, filings and approvals, and the potential therapeutic scope of the development and commercialization of our and our collaborators’ pipeline products;
adverse safety events involving our marketed products, generic or biosimilar versions of our marketed products or any other products from the same class as one of our products;
the potential impact of healthcare reform in the United States (U.S.) and measures being taken worldwide designed to reduce healthcare costs and limit the overall level of government expenditures, including the impact of pricing actions and reduced reimbursement for our products;
our manufacturing capacity, use of third-party contract manufacturing organizations, plans and timing relating to changes in our manufacturing capabilities and activities in new or existing manufacturing facilities;
the impact of the continued uncertainty of the credit and economic conditions in certain countries in Europe and our collection of accounts receivable in such countries;
the potential impact on our results of operations and liquidity of the United Kingdom's (U.K.) departure from the European Union (E.U.);
lease commitments, purchase obligations and the timing and satisfaction of other contractual obligations; and
the impact of new laws, including the Swiss Federal Act on Tax Reform and AHV Financing, regulatory requirements, judicial decisions and accounting standards.

3


These forward-looking statements involve risks and uncertainties, including those that are described in Item 1A. Risk Factors included in this report and elsewhere in this report that could cause actual results to differ materially from those reflected in such statements. You should not place undue reliance on these statements. Forward-looking statements speak only as of the date of this report. Except as required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
NOTE REGARDING COMPANY AND PRODUCT REFERENCES
References in this report to:
“Biogen,” the “company,” “we,” “us” and “our” refer to Biogen Inc. and its consolidated subsidiaries; and
“RITUXAN” refers to both RITUXAN (the trade name for rituximab in the U.S., Canada and Japan) and MabThera (the trade name for rituximab outside the U.S., Canada and Japan).
NOTE REGARDING TRADEMARKS
AVONEX®, PLEGRIDY®, RITUXAN®, RITUXAN HYCELA®, SPINRAZA®, TECFIDERA®, TYSABRI®, VUMERITY® and ZINBRYTA® are registered trademarks of Biogen.
BENEPALI™, FLIXABI™, FUMADERM™ and IMRALDI™ are trademarks of Biogen.
ENBREL®, EYLEA®, FAMPYRATM, GAZYVA®, HUMIRA®, LUCENTIS®, OCREVUS®, REMICADE®, SkySTAR™ and other trademarks referenced in this report are the property of their respective owners.

4


PART I FINANCIAL INFORMATION

BIOGEN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in millions, except per share amounts)
 
 
For the Three Months
Ended March 31,
 
2020
 
2019
Revenues:
 
 
 
Product, net
$
2,904.6

 
$
2,680.0

Revenues from anti-CD20 therapeutic programs
520.4

 
517.4

Other
109.3

 
292.4

Total revenues
3,534.3

 
3,489.8

Cost and expenses:
 
 
 
Cost of sales, excluding amortization and impairment of acquired intangible assets
454.3

 
602.0

Research and development
476.3

 
563.7

Selling, general and administrative
570.1

 
567.7

Amortization and impairment of acquired intangible assets
71.5

 
68.2

Collaboration profit (loss) sharing
71.8

 
58.1

Loss on divestiture of Hillerød, Denmark manufacturing operations

 
115.5

(Gain) loss on fair value remeasurement of contingent consideration
(4.6
)
 
11.5

Restructuring charges

 
0.4

Acquired in-process research and development
75.0

 

Total cost and expenses
1,714.4

 
1,987.1

Income from operations
1,819.9

 
1,502.7

Other income (expense), net
(120.5
)
 
357.3

Income before income tax expense and equity in loss of investee, net of tax
1,699.4

 
1,860.0

Income tax expense
292.0

 
422.5

Equity in loss of investee, net of tax
14.8

 
28.7

Net income
1,392.6

 
1,408.8

Net income (loss) attributable to noncontrolling interests, net of tax
(6.5
)
 

Net income attributable to Biogen Inc.
$
1,399.1

 
$
1,408.8

 
 
 
 
Net income per share:
 
 
 
Basic earnings per share attributable to Biogen Inc.
$
8.10

 
$
7.17

Diluted earnings per share attributable to Biogen Inc.
$
8.08

 
$
7.15

 
 
 
 
Weighted-average shares used in calculating:
 
 
 
Basic earnings per share attributable to Biogen Inc.
172.8

 
196.6

Diluted earnings per share attributable to Biogen Inc.
173.1

 
197.0








See accompanying notes to these unaudited condensed consolidated financial statements.

5


BIOGEN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited, in millions)
 
 
For the Three Months
Ended March 31,
 
2020
 
2019
Net income attributable to Biogen Inc.
$
1,399.1

 
$
1,408.8

Other comprehensive income:
 
 
 
Unrealized gains (losses) on securities available for sale, net of tax
(7.8
)
 
6.9

Unrealized gains (losses) on cash flow hedges, net of tax
33.8

 
16.9

Gains (losses) on net investment hedges
23.0

 
14.0

Unrealized gains (losses) on pension benefit obligation, net of tax
0.8

 
0.6

Currency translation adjustment
(63.9
)
 
(17.8
)
Total other comprehensive income (loss), net of tax
(14.1
)
 
20.6

Comprehensive income attributable to Biogen Inc.
1,385.0

 
1,429.4

Comprehensive income (loss) attributable to noncontrolling interests, net of tax
(5.9
)
 

Comprehensive income
$
1,379.1

 
$
1,429.4




































See accompanying notes to these unaudited condensed consolidated financial statements.

6


BIOGEN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except per share amounts)
 
 
As of March 31,
2020
 
As of December 31,
2019
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
2,591.3

 
$
2,913.7

Marketable securities
1,269.1

 
1,562.2

Accounts receivable, net
2,092.6

 
1,880.5

Due from anti-CD20 therapeutic programs
511.6

 
590.2

Inventory
858.8

 
804.2

Other current assets
683.8

 
631.0

Total current assets
8,007.2

 
8,381.8

Marketable securities
969.5

 
1,408.1

Property, plant and equipment, net
3,281.6

 
3,247.3

Operating lease assets
422.0

 
427.0

Intangible assets, net
3,446.9

 
3,527.4

Goodwill
5,752.0

 
5,757.8

Deferred tax asset
3,109.4

 
3,232.1

Investments and other assets
1,130.6

 
1,252.8

Total assets
$
26,119.2

 
$
27,234.3

LIABILITIES AND EQUITY
Current liabilities:
 
 
 
Current portion of notes payable
$
1,501.8

 
$
1,495.8

Taxes payable
310.0

 
71.4

Accounts payable
389.0

 
530.8

Accrued expenses and other
2,437.8

 
2,765.8

Total current liabilities
4,638.6

 
4,863.8

Notes payable
4,459.9

 
4,459.0

Deferred tax liability
2,722.8

 
2,810.8

Long-term operating lease liabilities
403.7

 
412.7

Other long-term liabilities
1,357.3

 
1,348.9

Total liabilities
13,582.3

 
13,895.2

Commitments and contingencies


 


Equity:
 
 
 
Biogen Inc. shareholders’ equity:
 
 
 
Preferred stock, par value $0.001 per share

 

Common stock, par value $0.0005 per share
0.1

 
0.1

Additional paid-in capital
0.1

 

Accumulated other comprehensive loss
(149.3
)
 
(135.2
)
Retained earnings
15,673.1

 
16,455.4

Treasury stock, at cost
(2,977.1
)
 
(2,977.1
)
Total Biogen Inc. shareholders’ equity
12,546.9

 
13,343.2

Noncontrolling interests
(10.0
)
 
(4.1
)
Total equity
12,536.9

 
13,339.1

Total liabilities and equity
$
26,119.2

 
$
27,234.3

See accompanying notes to these unaudited condensed consolidated financial statements.

7


BIOGEN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
 
 
For the Three Months
Ended March 31,
 
2020
 
2019
Cash flows from operating activities:
 
 
 
Net income
$
1,392.6

 
$
1,408.8

Adjustments to reconcile net income to net cash flows from operating activities:
 
 
 
Depreciation, amortization and impairments
119.9

 
121.1

Acquired in-process research and development
75.0

 

Share-based compensation
67.7

 
45.7

Contingent consideration
(4.6
)
 
11.5

Loss on divestiture of Hillerød, Denmark manufacturing operations

 
115.5

Deferred income taxes
36.9

 
228.0

Unrealized (gain) loss on strategic investments
62.0

 
(375.0
)
Loss on equity method investment

 

Other
45.7

 
50.7

Changes in operating assets and liabilities, net:
 
 
 
Accounts receivable
(238.4
)
 
(136.6
)
Due from anti-CD20 therapeutic programs
78.6

 

Inventory
(62.2
)
 
129.0

Accrued expenses and other current liabilities
(347.4
)
 
(138.4
)
Income tax assets and liabilities
223.0

 
170.3

Other changes in operating assets and liabilities, net
18.5

 
(171.1
)
Net cash flows provided by operating activities
1,467.3

 
1,459.5

Cash flows from investing activities:
 
 
 
Proceeds from sales and maturities of marketable securities
2,389.3

 
1,489.2

Purchases of marketable securities
(1,684.7
)
 
(825.0
)
Contingent consideration paid related to Fumapharm AG acquisition

 
(300.0
)
Purchases of property, plant and equipment
(149.7
)
 
(127.1
)
Acquired in-process research and development
(75.0
)
 

Acquisitions of intangible assets
(37.0
)
 

Proceeds from sales of strategic investments
0.5

 

Other
(0.5
)
 
1.7

Net cash flows provided by investing activities
442.9

 
238.8

Cash flows from financing activities:
 
 
 
Purchases of treasury stock
(2,220.2
)
 
(655.8
)
Payments related to issuance of stock for share-based compensation arrangements, net
(29.6
)
 
(32.2
)
Other
4.5

 
8.7

Net cash flows used in financing activities
(2,245.3
)
 
(679.3
)
Net increase (decrease) in cash and cash equivalents
(335.1
)
 
1,019.0

Effect of exchange rate changes on cash and cash equivalents
12.7

 
(0.4
)
Cash and cash equivalents, beginning of the period
2,913.7

 
1,224.6

Cash and cash equivalents, end of the period
$
2,591.3

 
$
2,243.2





See accompanying notes to these unaudited condensed consolidated financial statements.

8


BIOGEN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(unaudited, in millions)

 
Preferred stock
 
Common stock
 
Additional
paid-in
capital
 
Accumulated
other
comprehensive
loss
 
Retained
earnings
 
Treasury stock
 
Total
Biogen Inc.
shareholders’
equity
 
Noncontrolling
interests
 
Total
equity
 
Shares
 
Amount
 
Shares
 
Amount
 
 
 
 
Shares
 
Amount
 
 
 
Balance, December 31, 2019

 
$

 
198.0

 
$
0.1

 
$

 
$
(135.2
)
 
$
16,455.4

 
(23.8
)
 
$
(2,977.1
)
 
$
13,343.2

 
$
(4.1
)
 
$
13,339.1

Net income

 

 

 

 

 

 
1,399.1

 

 

 
1,399.1

 
(6.5
)
 
1,392.6

Other comprehensive income (loss), net of tax

 

 

 

 

 
(14.1
)
 

 

 

 
(14.1
)
 
0.6

 
(13.5
)
Repurchase of common stock pursuant to the March 2019 Share Repurchase Program, at cost


 

 

 

 

 

 

 
(4.1
)
 
(1,279.1
)
 
(1,279.1
)
 

 
(1,279.1
)
Retirement of common stock pursuant to the March 2019 Share Repurchase Program, at cost

 

 
(4.1
)
 

 
(71.0
)
 

 
(1,208.1
)
 
4.1

 
1,279.1

 

 

 

Repurchase of common stock pursuant to the December 2019 Share Repurchase Program, at cost

 

 

 

 

 

 

 
(3.2
)
 
(941.1
)
 
(941.1
)
 

 
(941.1
)
Retirement of common stock pursuant to the December 2019 Share Repurchase Program, at cost

 

 
(3.2
)
 

 
(15.6
)
 

 
(925.5
)
 
3.2

 
941.1

 

 

 

Issuance of common stock under stock option and stock purchase plans

 

 
0.1

 

 
18.1

 

 

 

 

 
18.1

 

 
18.1

Issuance of common stock under stock award plan

 

 
0.3

 

 

 

 
(47.8
)
 

 

 
(47.8
)
 

 
(47.8
)
Compensation related to share-based payments

 

 

 

 
69.2

 

 

 

 

 
69.2

 

 
69.2

Other

 

 

 

 
(0.6
)
 

 

 

 

 
(0.6
)
 

 
(0.6
)
Balance, March 31, 2020

 
$


191.1


$
0.1


$
0.1


$
(149.3
)

$
15,673.1


(23.8
)

$
(2,977.1
)

$
12,546.9


$
(10.0
)

$
12,536.9













See accompanying notes to these unaudited condensed consolidated financial statements.

9


BIOGEN INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - (Continued)
(unaudited, in millions)

 
Preferred stock
 
Common stock
 
Additional
paid-in
capital
 
Accumulated
other
comprehensive
loss
 
Retained
earnings
 
Treasury stock
 
Total
Biogen Inc.
shareholders’
equity
 
Noncontrolling
interests
 
Total
equity
 
Shares
 
Amount
 
Shares
 
Amount
 
 
 
 
Shares
 
Amount
 
 
 
Balance, December 31, 2018

 
$

 
221.0

 
$
0.1

 
$

 
$
(240.4
)
 
$
16,257.0

 
(23.8
)
 
$
(2,977.1
)
 
$
13,039.6

 
$
(8.0
)
 
$
13,031.6

Net income

 

 

 

 

 

 
1,408.8

 

 

 
1,408.8

 

 
1,408.8

Other comprehensive income (loss), net of tax

 

 

 

 

 
20.6

 

 

 

 
20.6

 

 
20.6

Capital contribution by noncontrolling interest

 

 

 

 

 

 

 

 

 

 
0.1

 
0.1

Repurchase of common stock pursuant to the 2018 Share Repurchase Program, at cost

 

 

 

 

 

 

 
(2.4
)
 
(655.8
)
 
(655.8
)
 

 
(655.8
)
Retirement of common stock pursuant to the 2018 Share Repurchase Program, at cost

 

 
(2.4
)
 

 
(65.6
)
 

 
(590.2
)
 
2.4

 
655.8

 

 

 

Issuance of common stock under stock option and stock purchase plans

 

 
0.1

 

 
16.6

 

 

 

 

 
16.6

 

 
16.6

Issuance of common stock under stock award plan

 

 
0.3

 

 

 

 
(48.9
)
 

 

 
(48.9
)
 

 
(48.9
)
Compensation related to share-based payments

 

 

 

 
49.0

 

 

 

 

 
49.0

 

 
49.0

Balance, March 31, 2019

 
$

 
219.0

 
$
0.1

 
$

 
$
(219.8
)
 
$
17,026.7

 
(23.8
)
 
$
(2,977.1
)
 
$
13,829.9

 
$
(7.9
)
 
$
13,822.0
















See accompanying notes to these unaudited condensed consolidated financial statements.

10

BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)


1.
Summary of Significant Accounting Policies
References in these notes to "Biogen," the "company," "we," "us" and "our" refer to Biogen Inc. and its consolidated subsidiaries.
Business Overview
Biogen is a global biopharmaceutical company focused on discovering, developing and delivering worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases as well as related therapeutic adjacencies. Our core growth areas include multiple sclerosis (MS) and neuroimmunology; Alzheimer's disease (AD) and dementia; neuromuscular disorders, including spinal muscular atrophy (SMA) and amyotrophic lateral sclerosis (ALS); movement disorders, including Parkinson's disease; and ophthalmology. We are also focused on discovering, developing and delivering worldwide innovative therapies in our emerging growth areas of immunology; neurocognitive disorders; acute neurology; and pain. In addition, we commercialize biosimilars of advanced biologics. We support our drug discovery and development efforts through the commitment of significant resources to discovery, research and development programs and business development opportunities.
Our marketed products include TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI and FAMPYRA for the treatment of MS; SPINRAZA for the treatment of SMA; and FUMADERM for the treatment of severe plaque psoriasis. We also have certain business and financial rights with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions; RITUXAN HYCELA for the treatment of non-Hodgkin's lymphoma and CLL; GAZYVA for the treatment of CLL and follicular lymphoma; OCREVUS for the treatment of primary progressive MS and relapsing MS; and other potential anti-CD20 therapies pursuant to our collaboration arrangements with Genentech, Inc. (Genentech), a wholly-owned member of the Roche Group. For additional information on our collaboration arrangements with Genentech, please read Note 18, Collaborative and Other Relationships, to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 (2019 Form 10-K).
Our innovative drug development and commercialization activities are complemented by our biosimilar business that expands access to medicines and reduces the cost burden for healthcare systems. Through Samsung Bioepis Co., Ltd. (Samsung Bioepis), our joint venture with Samsung BioLogics Co., Ltd. (Samsung BioLogics), we market and sell BENEPALI, an etanercept biosimilar referencing ENBREL, IMRALDI, an adalimumab biosimilar referencing HUMIRA, and FLIXABI, an infliximab biosimilar referencing REMICADE, in certain countries in Europe and have exclusive rights to commercialize these products in China. Additionally, we have exclusive rights to commercialize two potential ophthalmology biosimilar products, SB11 referencing LUCENTIS and SB15 referencing EYLEA, in major markets worldwide, including the United States (U.S.), Canada, Europe, Japan and Australia. For additional information on our collaboration arrangements with Samsung Bioepis, please read Note 16, Collaborative and Other Relationships, to these unaudited condensed consolidated financial statements (condensed consolidated financial statements).
Basis of Presentation
In the opinion of management, our condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, necessary for a fair statement of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States (U.S. GAAP). The information included in this quarterly report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and the accompanying notes included in our 2019 Form 10-K. Our accounting policies are described in the “Notes to Consolidated Financial Statements” in our 2019 Form 10-K and updated, as necessary, in this report. The year-end condensed consolidated balance sheet data presented for comparative purposes was derived from our audited financial statements but does not include all disclosures required by U.S. GAAP. The results of operations for the three months ended March 31, 2020, are not necessarily indicative of the operating results for the full year or for any other subsequent interim period.
We operate as one operating segment, focused on discovering, developing and delivering worldwide therapies for people living with serious neurological and neurodegenerative diseases as well as related therapeutic adjacencies.

11

BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, continued)

Consolidation
Our condensed consolidated financial statements reflect our financial statements, those of our wholly-owned subsidiaries and those of certain variable interest entities where we are the primary beneficiary. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interests in our condensed consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. Intercompany balances and transactions are eliminated in consolidation.
In determining whether we are the primary beneficiary of a variable interest entity, we apply a qualitative approach that determines whether we have both (1) the power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. These considerations impact the way we account for our existing collaborative relationships and other arrangements. We continuously assess whether we are the primary beneficiary of a variable interest entity as changes to existing relationships or future transactions may result in us consolidating or deconsolidating one or more of our collaborators or partners.
Use of Estimates
The preparation of our condensed consolidated financial statements requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis we evaluate our estimates, judgments and methodologies. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. The full extent to which the COVID-19 pandemic will directly or indirectly impact our business, results of operations and financial condition, including sales, expenses, reserves and allowances, manufacturing, clinical trials, research and development costs and employee-related amounts, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in future periods. Actual results may differ from these estimates.
New Accounting Pronouncements
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that we adopt as of the specified effective date. Unless otherwise discussed below, we do not believe that the adoption of recently issued standards have or may have a material impact on our condensed consolidated financial statements or disclosures.
Credit Losses
In June 2016 the FASB issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The FASB subsequently issued amendments to ASU 2016-13, which have the same effective date and transition date of January 1, 2020. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used, and establishes additional disclosures related to credit risks. For available-for-sale debt securities with unrealized losses, the standard now requires allowances to be recorded instead of reducing the amortized cost of the investment. This standard limits the amount of credit losses to be recognized for available-for-sale debt securities to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases.
This standard became effective for us on January 1, 2020, and based on the composition of our trade receivables, investment portfolio and other financial assets, current economic conditions and historical credit loss activity, the adoption of this standard did not have a material impact on our condensed consolidated financial statements and related disclosures. During the three months ended March 31, 2020, we recorded an immaterial amount associated with expected credit losses related to outstanding trade receivables in certain foreign countries that have been disproportionately impacted by the COVID-19 pandemic.

12

BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, continued)

Fair Value Measurements
In August 2018 the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This standard modifies certain disclosure requirements on fair value measurements. This standard became effective for us on January 1, 2020, and did not have a material impact on our disclosures. For the new disclosures regarding our Level 3 instruments, please read Note 7, Fair Value Measurements, to these condensed consolidated financial statements.
Internal Use Software
In August 2018 the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This standard clarifies the accounting for implementation costs in cloud computing arrangements. This standard became effective for us on January 1, 2020, and was adopted on a prospective basis, resulting in an insignificant amount of additional assets being recorded on our condensed consolidated balance sheets.
Collaborative Arrangements
In November 2018 the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606. This standard makes targeted improvements for collaborative arrangements as follows:
Clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in ASC 606 should be applied, including recognition, measurement, presentation and disclosure requirements;
Adds unit-of-account guidance to ASC 808, Collaborative Arrangements, to align with the guidance in ASC 606 (that is, a distinct good or service) when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within the scope of ASC 606; and
Precludes a company from presenting transactions with collaborative arrangement participants that are not directly related to sales to third parties with revenue recognized under ASC 606 if the collaborative arrangement participant is not a customer.
This standard became effective for us on January 1, 2020, and did not have a material impact on our condensed consolidated financial statements and related disclosures.
2.
Acquisitions
BIIB118 Acquisition
In March 2020 we acquired BIIB118 (formerly known as PF-05251749), a novel CNS-penetrant small molecule inhibitor of casein kinase 1, for the potential treatment of patients with behavioral and neurological symptoms across various psychiatric and neurological diseases from Pfizer Inc. (Pfizer). In particular, we plan to develop the Phase 1 asset for the potential treatment of sundowning in AD and irregular sleep wake rhythm disorder in Parkinson’s disease.
In connection with this acquisition, we made an upfront payment of $75.0 million to Pfizer, which was accounted for as an asset acquisition and recorded as acquired in-process research and development (IPR&D) in our condensed consolidated statements of income as BIIB118 has not yet reached technological feasibility. We may also pay Pfizer up to $635.0 million in potential additional development and commercialization milestone payments, as well as tiered royalties in the high single digits to sub-teens.

13

BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, continued)

Acquisition of Nightstar Therapeutics plc
In June 2019 we completed our acquisition of all of the outstanding shares of Nightstar Therapeutics plc (NST), a clinical-stage gene therapy company focused on adeno-associated virus (AAV) treatments for inherited retinal disorders. As a result of this acquisition, we added two mid- to late-stage clinical assets, as well as preclinical programs, in ophthalmology. These assets include BIIB111 (timrepigene emparvovec), which is in Phase 3 development for the potential treatment of choroideremia, a rare, degenerative, X-linked inherited retinal disorder that leads to blindness and currently has no approved treatments, and BIIB112 (RPGR gene therapy), which is in Phase 2/3 development for the potential treatment of X-linked retinitis pigmentosa, which is a rare inherited retinal disease with no currently approved treatments.
Under the terms of this acquisition, we paid NST shareholders $25.50 in cash for each issued and outstanding NST share, which totaled $847.6 million. In addition, we paid $4.6 million in cash for equity compensation, which is attributable to pre-combination services and was reflected as a component of the total purchase price paid. The fair value of equity compensation attributable to the post-combination service period was $26.2 million, of which $18.4 million was recognized as a charge to selling, general and administrative expense with the remaining $7.8 million as a charge to research and development expense in our condensed consolidated statements of income. These amounts were associated with the accelerated vesting of stock options previously granted to NST employees and were fully paid in cash as of June 30, 2019. We funded this acquisition through available cash and accounted for it as an acquisition of a business.
We finalized purchase accounting for this acquisition in the fourth quarter of 2019. The following table summarizes the fair values of the separately identifiable assets acquired and liabilities assumed:
(In millions)
 
Cash and cash equivalents
$
107.8

Marketable securities
7.5

In-process research and development intangible assets
700.0

Goodwill
117.5

Deferred tax liability
(81.9
)
Other, net
1.3

Total purchase price
$
852.2


The fair value of the IPR&D programs acquired was determined through a probability adjusted discounted cash flow analysis utilizing a discount rate of 12.5%. This valuation was primarily driven by the value associated with BIIB111. The fair value associated with BIIB111 was $480.0 million. We have recorded an additional IPR&D asset related to BIIB112 of $220.0 million. Some of the more significant assumptions utilized in our asset valuations included the estimated net cash flows for each year for each asset or product, including net revenues, cost of sales, research and development and other operating expenses, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream as well as other factors. These fair value measurements were based on significant inputs not observable in the market and thus represent Level 3 fair value measurements.
We have recognized goodwill in relation to the fair value associated with NST workforce's expertise and early research in retinal disorders. We also recognized goodwill in relation to the establishment of a deferred tax liability for the acquired IPR&D intangible assets, which have no tax basis. This deferred tax liability is net of the related impacts on the deferred taxes for global intangible low-taxed income (GILTI). Goodwill that is tax deductible for GILTI purposes is approximately $35.5 million.
Pro forma results of operations as a result of this acquisition have not been presented as this acquisition is not material to our condensed consolidated statements of income. Subsequent to the acquisition date, our results of operations include the results of operations of NST.

14

BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, continued)

3.
Divestitures
Divestiture of Hillerød, Denmark Manufacturing Operations
In March 2019 we entered into a share purchase agreement with FUJIFILM Corporation (FUJIFILM) to sell all of the outstanding shares of our subsidiary that owned our biologics manufacturing operations in Hillerød, Denmark. We determined that the assets and liabilities related to our Hillerød, Denmark manufacturing operations met the criteria to be classified as held for sale and recorded an initial loss of approximately $174.6 million in our condensed consolidated statements of income in the first quarter of 2019. This estimated loss, which was subsequently remeasured each reporting period, included a pre-tax loss of $115.5 million reflecting our estimated fair value of the assets and liabilities held for sale as of March 31, 2019, adjusted for our expected costs to sell our Hillerød, Denmark manufacturing operations of approximately $10.0 million and included our initial estimate of the fair value of an adverse commitment of approximately $120.0 million associated with the guarantee of future minimum batch production at the Hillerød facility. The value of this adverse commitment was determined using a probability-weighted estimate of future manufacturing activity. We also recorded a tax expense of $59.1 million related to this planned transaction in the first quarter of 2019.
In August 2019 this transaction closed and we received approximately $881.9 million in cash, which may be adjusted based on contractual terms, which are discussed below. We determined that the operations disposed of in this transaction did not meet the criteria to be classified as discontinued operations under the applicable guidance.
As part of this transaction, we have provided FUJIFILM with certain minimum batch production commitment guarantees. There is a risk that the minimum contractual batch production commitments will not be met. Our estimate of the adverse commitment obligation is approximately $74.0 million as of March 31, 2020 and December 31, 2019. We developed this estimate using a probability-weighted estimate of future manufacturing activity and may adjust this estimate based upon changes in business conditions, which may result in the increase or reduction of this adverse commitment obligation in subsequent periods. We also may be obligated to indemnify FUJIFILM for liabilities that existed relating to certain business activities incurred prior to the closing of this transaction. Our estimate of the fair value of the adverse commitment obligation is a Level 3 measurement and is based on forecasted batch production at the Hillerød facility.
In addition, we may earn certain contingent payments based on future manufacturing activities at the Hillerød facility. For the disposition of a business, our policy is to recognize contingent consideration when the consideration is realizable. Consistent with our assessment as of the transaction date, we currently believe the probability of earning these payments is remote and therefore we did not include these contingent payments in our calculation of the fair value of the operations.
As part of this transaction, we entered into certain manufacturing services agreements with FUJIFILM pursuant to which FUJIFILM will use the Hillerød facility to produce commercial products for us, such as TYSABRI, as well as other third-party products. In addition, we sold to FUJIFILM $41.8 million of raw materials that were remaining at the Hillerød facility on the closing date of this transaction in the third quarter of 2019. These materials were sold at cost, which approximates fair value.

15

BIOGEN INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, continued)

4.
Revenues
Product Revenues
Revenues by product are summarized as follows:
 
 
For the Three Months
Ended March 31,
(In millions)
 
2020
 
2019
 
 
United
States
 
Rest of
World
 
Total
 
United
States
 
Rest of
World
 
Total
Multiple Sclerosis (MS):
 
 
 
 
 
 
 
 
 
 
 
 
Fumarate*
 
$
777.5

 
$
323.3

 
$
1,100.8

 
$
717.7

 
$
281.1

 
$
998.8

Interferon**
 
292.6

 
173.4

 
466.0

 
327.3

 
173.6

 
500.9

TYSABRI
 
277.7

 
244.7

 
522.4

 
245.0

 
215.4

 
460.4

FAMPYRA
 

 
28.3

 
28.3

 

 
22.9

 
22.9

Subtotal: MS product revenues
 
1,347.8

 
769.7

 
2,117.5

 
1,290.0

 
693.0

 
1,983.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Spinal Muscular Atrophy:
 
 
 
 
 

 
 
 
 
 

SPINRAZA
 
235.4

 
329.6

 
565.0

 
223.3

 
295.2

 
518.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Biosimilars:
 
 
 
 
 

 
 
 
 
 

BENEPALI
 

 
133.5

 
133.5

 

 
124.0

 
124.0

IMRALDI
 

 
61.6

 
61.6

 

 
35.7

 
35.7

FLIXABI
 

 
23.7

 
23.7

 

 
14.7

 
14.7

Subtotal: Biosimilar product revenues
 

 
218.8

 
218.8