Revenues

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenues

Product Revenue

Revenue by product is summarized as follows:

	For the Three Months Ended March 31,
	2023						2022
(In millions)	United States		Rest of World		Total		United States		Rest of World		Total
Multiple Sclerosis (MS):
TECFIDERA	$	74.7	$	199.8	$	274.5	$	117.1	$	292.8	$	409.9
VUMERITY	93.5		14.7		108.2		125.2		2.8		128.0
Total Fumarate	168.2		214.5		382.7		242.3		295.6		537.9
AVONEX	102.6		69.8		172.4		148.0		81.6		229.6
PLEGRIDY	29.9		43.3		73.2		34.3		45.7		80.0
Total Interferon	132.5		113.1		245.6		182.3		127.3		309.6
TYSABRI	245.4		227.4		472.8		284.5		236.3		520.8
FAMPYRA	—		24.1		24.1		—		26.2		26.2
Subtotal: MS	546.1		579.1		1,125.2		709.1		685.4		1,394.5
Spinal Muscular Atrophy:
SPINRAZA	146.7		296.6		443.3		163.3		309.2		472.5
Biosimilars:
BENEPALI	—		109.0		109.0		—		114.7		114.7
IMRALDI	—		54.4		54.4		—		57.1		57.1
FLIXABI	—		20.4		20.4		—		22.5		22.5
BYOOVIZ	8.2		0.4		8.6		—		—		—
Subtotal: Biosimilars	8.2		184.2		192.4		—		194.3		194.3
Other(1)	0.4		2.0		2.4		2.8		2.2		5.0
Total product revenue	$	701.4	$	1,061.9	$	1,763.3	$	875.2	$	1,191.1	$	2,066.3

(1) Other includes FUMADERM and ADUHELM.

We recognized revenue from two wholesalers accounting for 27.3% and 7.4% of gross product revenue for the three months ended March 31, 2023, and 26.3% and 10.5% of gross product revenue for the three months ended March 31, 2022.

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

(In millions)	Discounts		Contractual Adjustments		Returns		Total
Balance, December 31, 2022	$	153.8	$	857.7	$	23.5	$	1,035.0
Current provisions relating to sales in current year	182.3		638.0		3.5		823.8
Adjustments relating to prior years	(1.1)		(8.1)		1.0		(8.2)
Payments/credits relating to sales in current year	(94.0)		(261.8)		(1.0)		(356.8)
Payments/credits relating to sales in prior years	(73.3)		(368.1)		(7.4)		(448.8)
Balance, March 31, 2023	$	167.7	$	857.7	$	19.6	$	1,045.0

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

(In millions)	As of March 31, 2023		As of December 31, 2022
Reduction of accounts receivable	$	137.8	$	143.4
Component of accrued expense and other	907.2		891.6
Total revenue-related reserves	$	1,045.0	$	1,035.0

Revenue from LEQEMBI Collaboration

In January 2023 the FDA granted accelerated approval of LEQEMBI, which became commercially available in the U.S. during the first quarter of 2023. Upon commercialization, we began recognizing commercial profits and losses related to the LEQEMBI Collaboration Agreement on a net basis as a separate component of total revenue within our condensed consolidated income statements, as we are not the principal.

For the three months ended March 31, 2023, we recognized a reduction to revenue of approximately $18.9 million, reflecting our net profit-share of the LEQEMBI Collaboration results in the U.S.

For additional information on our collaboration arrangements with Eisai, please read Note 16, Collaborative and Other Relationships, to these condensed consolidated financial statements.

Revenue from Anti-CD20 Therapeutic Programs

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

	For the Three Months Ended March 31,
(In millions)	2023		2022
Royalty revenue on sales of OCREVUS	$	283.6	$	252.3
Biogen’s share of pre-tax profits in the U.S. for RITUXAN, GAZYVA and LUNSUMIO	112.5		143.2
Other revenue from anti-CD20 therapeutic programs	3.4		3.9
Total revenue from anti-CD20 therapeutic programs	$	399.5	$	399.4

For additional information on our collaboration arrangements with Genentech, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2022 Form 10-K.

Contract Manufacturing, Royalty and Other Revenue

Contract manufacturing, royalty and other revenue is summarized in the table below.

	For the Three Months Ended March 31,
(In millions)	2023		2022
Contract manufacturing revenue	$	306.9	$	47.5
Royalty and other revenue	12.2		18.6
Total contract manufacturing, royalty and other revenue	$	319.1	$	66.1

Contract Manufacturing Revenue

Contract manufacturing revenue primarily reflects amounts earned under contract manufacturing agreements with our strategic customers. During the first quarter of 2023 we began recognizing contract manufacturing revenue for LEQEMBI, upon accelerated approval of LEQEMBI in the U.S. Prior to accelerated approval, contract manufacturing amounts related to LEQEMBI were recognized in research and development within our condensed consolidated income statements.

Royalty and Other Revenue

Royalty and other revenue primarily 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 license arrangements with Samsung Bioepis.

For additional information on our license arrangements with Samsung Bioepis, please read Note 16, Collaborative and Other Relationships, to these condensed consolidated financial statements.