Biogen Inc. (NASDAQ:BIIB) Q1 2019 Earnings Conference Call Transcript

Apr 24, 2019 • 08:00 am ET


Biogen Inc. (NASDAQ:BIIB) Q1 2019 Earnings Conference Call Transcript


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Good morning, my name is Jessa and I will be your conference operator today. At this time, I would like to welcome everyone to the Biogen First Quarter 2019 Financial Results and Business Update. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions).

Thank you. I'd now like to turn the conference over to Mr. Matt Calistri, Vice President, Investor Relations. You may begin sir.

Matthew Calistri

Thank you and welcome to Biogen's First Quarter 2019 Earnings Conference Call. Before we begin, I encourage everyone to go to the Investors section of to find the earnings release and related financial tables, including a reconciliation of the GAAP to non-GAAP financial measures that we will discuss today.

Our GAAP financials are provided in Tables 1 and 2. Table 3 includes a reconciliation of our GAAP to non-GAAP financial results. We believe non-GAAP financial results better represent the ongoing economics of our business and reflect how we manage the business internally. We have also posted slides on our website that follow the discussions related to this call.

I would like to point out that we will be making forward-looking statements, which are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties, and our actual results may differ materially. I encourage you to consult the Risk Factors discussed in our SEC filings for additional detail.

On today's call, I am joined by our Chief Executive Officer, Michel Vounatsos, Dr. Michael Ehlers, EVP of Research and Development; and our CFO, Jeff Capello. We will also be joined for the Q&A portion of the call by our Chief Medical Officer, Dr. Al Sandrock.

Now I'll turn the call over to Michel.

Michel Vounatsos

Good morning everyone and thank you for joining us. First, let me start with some financial highlights. Biogen started 2019 with first quarter revenues of $3.5 billion, an increase of approximately 11% compared to the same period a year ago.

First quarter 2019 GAAP earnings were $7.15 per share, an increase of 29% versus the same period a year ago. First quarter 2019 non-GAAP earnings were $6.98 per share, a 15% increase versus the same period a year ago. These results were driven by solid execution of our strategy to maximize the resilience in MS, progress in our global launch of SPINRAZA, expand our anti-TNF biosimilar success in Europe, create a leaner and simpler operating model and prioritize our capital location efforts with a goal of maximizing shareholder returns.

Let me expand on capital allocation. We remain focused on investing in areas with the highest potential benefit for patients and return for our shareholders. In addition to investing in our organic pipeline collaborations and acquired programs, we have made strategic investments in our operations, our biosimilars joint venture, our next generation manufacturing facility that we are building in Solothurn, Switzerland.

We have also taken measures to unlock capital that can be redeployed for higher