Quarterly Financial Data (Unaudited)



(In millions, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
2018	(a) (b)		(a) (b) (c) (d)		(a) (b) (e)		(a) (f) (g) (h) (i)
Product revenues, net	$	2,523.5	$	2,757.5	$	2,780.1	$	2,825.7	$	10,886.8
Revenues from anti-CD20 therapeutic programs	$	443.2	$	490.4	$	511.7	$	534.9	$	1,980.2
Other revenues	$	164.4	$	108.6	$	147.2	$	165.7	$	585.9
Total revenues	$	3,131.1	$	3,356.5	$	3,439.0	$	3,526.3	$	13,452.9
Gross profit (1)	$	2,685.1	$	2,935.5	$	2,978.2	$	3,037.8	$	11,636.6
Net income	$	1,171.2	$	915.0	$	1,442.9	$	944.9	$	4,474.0
Net income attributable to Biogen Inc.	$	1,172.9	$	866.6	$	1,444.4	$	946.8	$	4,430.7
Net income per share:
Basic earnings per share attributable to Biogen Inc.	$	5.55	$	4.18	$	7.17	$	4.74	$	21.63
Diluted earnings per share attributable to Biogen Inc.	$	5.54	$	4.18	$	7.15	$	4.73	$	21.58
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Inc.	211.4		207.1		201.4		199.8		204.9
Diluted earnings per share attributable to Biogen Inc.	211.7		207.3		201.9		200.3		205.3



(In millions, except per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Total Year
2017	(g)		(j) (k) (l)				(m) (n) (o) (p)
Product revenues, net	$	2,380.1	$	2,639.7	$	2,622.5	$	2,712.4		$	10,354.7
Revenues from anti-CD20 therapeutic programs	$	340.6	$	397.1	$	406.5	$	415.0		$	1,559.2
Other revenues	$	90.0	$	41.6	$	48.8	$	179.6		$	360.0
Total revenues	$	2,810.7	$	3,078.4	$	3,077.8	$	3,307.0		$	12,273.9
Gross profit (1)	$	2,426.1	$	2,712.2	$	2,707.8	$	2,797.8		$	10,643.9
Net income	$	747.5	$	862.8	$	1,226.1	$	(166.3	)	$	2,670.1
Net income attributable to Biogen Inc.	$	747.6	$	862.8	$	1,226.1	$	(297.4	)	$	2,539.1
Net income per share:
Basic earnings per share attributable to Biogen Inc.	$	3.47	$	4.07	$	5.80	$	(1.41	)	$	11.94
Diluted earnings per share attributable to Biogen Inc.	$	3.46	$	4.07	$	5.79	$	(1.40	)	$	11.92
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Inc.	215.6		211.9		211.4		211.5			212.6
Diluted earnings per share attributable to Biogen Inc.	215.9		212.2		211.8		212.0			213.0

(1) Gross profit is calculated as total revenues less cost of sales, excluding amortization and impairment of acquired intangible assets.


(a)	Net income and net income attributable to Biogen Inc. for the first, second, third and fourth quarters of 2018 includes pre-tax charges related to (losses) gains recorded in relation to changes in the fair value of our strategic investments of $(6.4) million, $5.4 million, $141.2 million and $(12.2) million, respectively.

(b)

Net income and net income attributable to Biogen Inc. for the first, second and third quarters of 2018 include pre-tax charges to acquired IPR&D of $10.0 million, $75.0 million and $27.5 million, respectively, for upfront payments to Karyopharm, Pfizer and AliveGen, respectively, upon closing of the asset purchase transactions for BIIB100, BIIB104 and BIIB110, respectively, as the underlying assets had not yet reached technological feasibility.

(c)

Net income and net income attributable to Biogen Inc. for the second quarter of 2018 includes pre-tax charges to research and development expense of $486.2 million upon the closing of the 2018 Ionis Agreement. Included in this amount was a charge of $162.1 million reflecting the premium paid above fair value for the purchase of approximately 11.5 million shares of Ionis' common stock upon the closing of the 2018 Ionis Agreement.


(d)	Net income attributable to Biogen Inc. for the second quarter of 2018 includes a pre-tax charge to noncontrolling interest of $50.0 million for a payment to Neurimmune in exchange for a 5% reduction in the previously negotiated royalty rates payable on products developed under the Neurimmune Agreement, including royalties payable on potential commercial sales of aducanumab.

(e)

Net income and net income attributable to Biogen Inc. for the third quarter of 2018 includes the impact of impairment charges totaling $189.3 million related to certain IPR&D assets associated with our vixotrigine program and an adjustment to the value of our contingent consideration obligations related to our vixotrigine program for the treatment of TGN to reflect the lower cumulative probabilities of success, which resulted in a gain of $89.6 million in the third quarter of 2018.

(f)

In late December 2018 we received feedback from the FDA regarding the design of the Phase 3 vixotrigine program for the treatment of TGN. Following this feedback, we are now planning to initiate the Phase 3 vixotrigine program for the treatment of TGN and, as a result, we adjusted the fair value of our contingent consideration obligations related to our vixotrigine program for the treatment of TGN to reflect the increased probabilities of success and recognized a loss of $80.6 million in the fourth quarter of 2018.


(g)	Net income and net income attributable to Biogen Inc. for the fourth quarter of 2018 and the first quarter of 2017 includes $176.8 million and $328.2 million, respectively, of impairment charges related to our intangible asset associated with our U.S. license to Forward Pharma's intellectual property, including Forward Pharma's intellectual property related to TECFIDERA.


(h)	Net income and net income attributable to Biogen Inc. for the fourth quarter of 2018 includes a net increase to income tax expense of $135.8 million reflecting the impact of electing to record deferred taxes on GILTI.


(i)	Net income and net income attributable to Biogen Inc. for the fourth quarter of 2018 includes an upfront payment of $35.0 million to Ionis, as we exercised our option to obtain a worldwide, exclusive, royalty-bearing license from Ionis to develop and commercialize BIIB067.


(j)	Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to research and development expense of $300.0 million for an upfront payment made to BMS upon entering into our agreement to exclusively license BIIB092.


(k)	Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to acquired IPR&D of $120.0 million for an upfront payment to Remedy upon closing of the asset purchase transaction for BIIB093.


(l)	Net income and net income attributable to Biogen Inc. for the second quarter of 2017 includes a pre-tax charge to research and development expense of $60.0 million for a developmental milestone that became payable to the former shareholders of iPierian upon dosing of the first patient in the Phase 2 study of BIIB092 for PSP.


(m)	Net income attributable to Biogen Inc. for the fourth quarter of 2017 includes a pre-tax charge to noncontrolling interest of $150.0 million for a payment made to Neurimmune in exchange for a 15% reduction in the previously negotiated royalty rates payable on products developed under the Neurimmune Agreement, including royalties payable on potential commercial sales of aducanumab.


(n)	Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes pre-tax charges to research and development expense of $28.0 million and $50.0 million for an upfront payment and a continuation payment, respectively, to Alkermes.


(o)	Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes a pre-tax charge to research and development expense of $25.0 million for an upfront payment to Ionis upon entering into a new collaboration agreement to identify new ASO drug candidates for the treatment of SMA.


(p)	Net income and net income attributable to Biogen Inc. for the fourth quarter of 2017 includes $1,173.6 million related to the provisions of the 2017 Tax Act, including a $989.6 million expense under the Transition Toll Tax.

For additional information on our acquisitions of BIIB100, BIIB104, BIIB110 and BIIB093, please read Note 2, Acquisitions, to these consolidated financial statements. For additional information on our collaboration arrangements with Ionis, BMS and Alkermes, please read Note 19, Collaborative and Other Relationships, to these consolidated financial statements. For additional information on our collaboration arrangement with Neurimmune, please read Note 20, Investments in Variable Interest Entities, to these consolidated financial statements. For additional information on the amortization and impairment of acquired intangible assets, including our IPR&D intangible asset related to our vixotrigine program for the treatment of TGN and our TECFIDERA settlement and license agreement, please read Note 7, Intangible Assets and Goodwill, to these consolidated financial statements. For additional information on the 2017 Tax Act, please read Note 17, Income Taxes, to these consolidated financial statements.