Biogen Inc (BIIB) has reported a 21.93 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $649.20 million, or $2.99 a share in the quarter, compared with $831.60 million, or $3.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1,093.20 million, or $5.04 a share compared with $994.70 million or $4.50 a share, a year ago. Revenue during the quarter went up marginally by 1.15 percent to $2,872 million from $2,839.30 million in the previous year period. Gross margin for the quarter contracted 149 basis points over the previous year period to 86.82 percent. Total expenses were 69.14 percent of quarterly revenues, up from 58.86 percent for the same period last year. That has resulted in a contraction of 1029 basis points in operating margin to 30.86 percent.
Operating income for the quarter was $886.20 million, compared with $1,168.20 million in the previous year period.
"Biogen seeks to advance transformational pipeline programs for some of the greatest challenges in medicine, including Alzheimer’s disease, Parkinson’s, and ALS," said chief executive officer Michel Vounatsos. "SPINRAZA for spinal muscular atrophy is a prime example of the type of groundbreaking innovation that we must continue to pursue. As the first treatment for infants and children with this devastating disease, SPINRAZA has the potential to improve and extend the lives of thousands of patients worldwide."
For fiscal year 2017, Biogen Inc forecasts revenue to be in the range of $11,100 million to $11,400 million. The company expects net income to be $3,920 million and adjusted net income to be $4,445 million. It company expects diluted earnings per share to be in the range of $18 to $18.80. The company expects diluted earnings per share to be in the range of $20.45 to $21.25 on adjusted basis.
Working capital increases sharply
Biogen Inc has recorded an increase in the working capital over the last year. It stood at $5,395.30 million as at Dec. 31, 2016, up 30.87 percent or $1,272.70 million from $4,122.60 million on Dec. 31, 2015. Current ratio was at 2.62 as on Dec. 31, 2016, up from 2.60 on Dec. 31, 2015. Days sales outstanding went up to 23 days for the quarter compared with 20 days for the same period last year.
Days inventory outstanding has decreased to 122 days for the quarter compared with 124 days for the previous year period.
Debt remains almost stable
Total debt of Biogen Inc remained almost stable for the quarter at $6,512.70 million, when compared with the last year period. Total debt was 28.47 percent of total assets as on Dec. 31, 2016, compared with 33.44 percent on Dec. 31, 2015. Debt to equity ratio was at 0.54 as on Dec. 31, 2016, down from 0.70 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
