Revenue

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Note 5: Revenue

Product Revenue

Revenue by product are summarized as follows:

	For the Years Ended December 31,
	2022						2021						2020
(In millions)	United States		Rest of World		Total		United States		Rest of World		Total		United States		Rest of World		Total
Multiple Sclerosis (MS):
TECFIDERA	$	417.7	$	1,026.2	$	1,443.9	$	680.6	$	1,271.3	$	1,951.9	$	2,677.7	$	1,163.4	$	3,841.1
VUMERITY(1)	521.3		32.1		553.4		408.9		1.5		410.4		64.3		—		64.3
Total Fumarate	939.0		1,058.3		1,997.3		1,089.5		1,272.8		2,362.3		2,742.0		1,163.4		3,905.4
AVONEX	649.2		324.3		973.5		830.2		378.5		1,208.7		1,083.4		408.5		1,491.9
PLEGRIDY	148.4		183.5		331.9		152.9		204.5		357.4		190.1		195.5		385.6
Total Interferon	797.6		507.8		1,305.4		983.1		583.0		1,566.1		1,273.5		604.0		1,877.5
TYSABRI	1,123.4		907.5		2,030.9		1,142.2		920.9		2,063.1		1,096.8		849.3		1,946.1
FAMPYRA	—		96.6		96.6		—		105.2		105.2		—		103.1		103.1
Subtotal: MS	2,860.0		2,570.2		5,430.2		3,214.8		2,881.9		6,096.7		5,112.3		2,719.8		7,832.1
Spinal Muscular Atrophy:
SPINRAZA	600.2		1,193.3		1,793.5		587.9		1,317.2		1,905.1		787.8		1,264.3		2,052.1
Biosimilars:
BENEPALI	—		441.0		441.0		—		498.3		498.3		—		481.6		481.6
IMRALDI	—		224.5		224.5		—		233.4		233.4		—		216.3		216.3
FLIXABI	—		81.3		81.3		—		99.4		99.4		—		97.9		97.9
BYOOVIZ(2)	4.3		—		4.3		—		—		—		—		—		—
Subtotal: Biosimilars	4.3		746.8		751.1		—		831.1		831.1		—		795.8		795.8
Other:
FUMADERM	—		8.2		8.2		—		11.0		11.0		—		12.2		12.2
ADUHELM	4.8		—		4.8		3.0		—		3.0		—		—		—
Total product revenue	$	3,469.3	$	4,518.5	$	7,987.8	$	3,805.7	$	5,041.2	$	8,846.9	$	5,900.1	$	4,792.1	$	10,692.2

(1) VUMERITY became commercially available in the E.U. during the fourth quarter of 2021.

(2) BYOOVIZ launched in the U.S. in June 2022 and became commercially available during the third quarter of 2022.

We recognized revenue from two wholesalers accounting for 26.8% and 11.1% of gross product revenue in 2022, 28.8% and 10.1% of gross product revenue in 2021 and 30.5% and 15.3% of gross product revenue in 2020, respectively.

As of December 31, 2022, two wholesale distributors individually accounted for approximately 22.7% and 10.9% of net accounts receivable associated with our product sales, as compared to 21.9% and 10.2% as of December 31, 2021, respectively.

An analysis of the change in reserves for discounts and allowances is summarized as follows:

	December 31, 2022
(In millions)	Discounts		Contractual Adjustments		Returns		Total
Beginning balance	$	137.7	$	759.6	$	38.0	$	935.3
Current provisions relating to sales in current year	666.6		2,715.5		12.3		3,394.4
Adjustments relating to prior years	(2.8)		1.4		(7.2)		(8.6)
Payments/credits relating to sales in current year	(514.9)		(2,060.7)		(1.2)		(2,576.8)
Payments/credits relating to sales in prior years	(132.8)		(558.1)		(18.4)		(709.3)
Ending balance	$	153.8	$	857.7	$	23.5	$	1,035.0

	December 31, 2021
(In millions)	Discounts		Contractual Adjustments		Returns		Total
Beginning balance	$	141.4	$	1,093.0	$	41.6	$	1,276.0
Current provisions relating to sales in current year	736.7		2,948.7		15.2		3,700.6
Adjustments relating to prior years	(4.0)		(96.1)		(3.3)		(103.4)
Payments/credits relating to sales in current year	(599.3)		(2,283.1)		(0.4)		(2,882.8)
Payments/credits relating to sales in prior years	(137.1)		(902.9)		(15.1)		(1,055.1)
Ending balance	$	137.7	$	759.6	$	38.0	$	935.3

	December 31, 2020
(In millions)	Discounts		Contractual Adjustments		Returns		Total
Beginning balance	$	131.1	$	1,027.3	$	40.5	$	1,198.9
Current provisions relating to sales in current year	774.7		3,308.8		19.0		4,102.5
Adjustments relating to prior years	(1.0)		(54.0)		1.3		(53.7)
Payments/credits relating to sales in current year	(635.1)		(2,426.1)		—		(3,061.2)
Payments/credits relating to sales in prior years	(128.3)		(763.0)		(19.2)		(910.5)
Ending balance	$	141.4	$	1,093.0	$	41.6	$	1,276.0

The total reserves above, which are included in our consolidated balance sheets, are summarized as follows:

	As of December 31,
(In millions)	2022		2021
Reduction of accounts receivable	$	143.4	$	133.2
Component of accrued expense and other	891.6		802.1
Total revenue-related reserves	$	1,035.0	$	935.3

Revenue from Anti-CD20 Therapeutic Programs

Revenue from anti-CD20 therapeutic programs is summarized in the table below. For purposes of this footnote, we refer to RITUXAN and RITUXAN HYCELA collectively as RITUXAN.

	For the Years Ended December 31,
(In millions)	2022		2021		2020
Royalty revenue on sales of OCREVUS	$	1,136.3	$	991.7	$	845.4
Biogen's share of pre-tax profits in the U.S. for RITUXAN and GAZYVA	547.0		647.7		1,080.2
Other revenue from anti-CD20 therapeutic programs	17.2		19.1		52.2
Total revenue from anti-CD20 therapeutic programs	$	1,700.5	$	1,658.5	$	1,977.8

Approximately 16.7%, 15.1% and 14.7% of our total revenue in 2022, 2021 and 2020, respectively, was derived from our collaboration arrangements with Genentech. For additional information on our collaboration

arrangements with Genentech, please read Note 19, Collaborative and Other Relationships, to these consolidated financial statements.

Other Revenue

Other revenue consists of royalty revenue and contract manufacturing and other revenue and is summarized as follows:

	For the Years Ended December 31,
(In millions)	2022		2021		2020
Contract manufacturing and other revenue	$	417.7	$	427.7	$	719.1
Royalty revenue	67.4		48.6		55.5
Total other revenue	$	485.1	$	476.3	$	774.6

Contract Manufacturing and Other Revenue

Contract manufacturing and other revenue primarily reflects amounts earned under contract manufacturing agreements with our strategic customers.

During the third quarter of 2019, we amended our agreement with a contract manufacturing customer pursuant to which we licensed certain of our manufacturing-related intellectual property to the customer. In the second quarter of 2020, the customer received regulatory approval for its product that is being manufactured using certain of our manufacturing-related intellectual property. As a result we were entitled to $500.0 million in a series of three payments. The first payment became due upon a regulatory approval of such product and was received during the second quarter of 2020. The second payment became due upon the first anniversary of the regulatory approval and was received during the second quarter of 2021. The third payment became due upon the second anniversary of the regulatory approval and was received during the second quarter of 2022.

Contract manufacturing and other revenue for the year ended December 31, 2020, reflects $346.2 million related to the delivery of the license for certain of our manufacturing-related intellectual property under the amended agreement, as discussed above, and the performance of manufacturing product supply services for such customer. We allocated the remaining $153.8 million of the $500.0 million transaction price to the performance of manufacturing product supply services for the customer, which we expect to perform through 2026. The value allocated to the manufacturing services was based on expected demand for supply and the fair value of comparable manufacturing and development services.

Royalty Revenue

Royalty revenue reflects the royalties we receive from net sales on products related to patents that we have out-licensed, as well as royalty revenue on biosimilar products from our collaboration arrangements with Samsung Bioepis.

For additional information on our collaboration arrangements with Samsung Bioepis, please read Note 19, Collaborative and Other Relationships, to these consolidated financial statements.