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Biogen (NAS:BIIB) Gross Margin %

: 81.28% (As of Sep. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Biogen's Gross Profit for the three months ended in Sep. 2022 was USD2,039 Mil. Biogen's Revenue for the three months ended in Sep. 2022 was USD2,509 Mil. Therefore, Biogen's Gross Margin % for the quarter that ended in Sep. 2022 was 81.28%.

Warning Sign:

Biogen Inc gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


The historical rank and industry rank for Biogen's Gross Margin % or its related term are showing as below:

BIIB' s Gross Margin % Range Over the Past 10 Years
Min: 77.15   Med: 86.9   Max: 90.11
Current: 77.15


During the past 13 years, the highest Gross Margin % of Biogen was 90.11%. The lowest was 77.15%. And the median was 86.90%.

BIIB's Gross Margin % is ranked better than
91.28% of 1021 companies
in the Drug Manufacturers industry
Industry Median: 45.82 vs BIIB: 77.15

Biogen had a gross margin of 81.28% for the quarter that ended in Sep. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Biogen was -1.10% per year.


Biogen (NAS:BIIB) Gross Margin % Historical Data

The historical data trend for Biogen's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Biogen Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 86.72 86.50 86.40 86.57 80.79

Biogen Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 81.58 75.85 70.22 81.31 81.28

Biogen (NAS:BIIB) Gross Margin % Competitive Comparison

For the Drug Manufacturers - General subindustry, Biogen's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Biogen (NAS:BIIB) Gross Margin % Distribution

For the Drug Manufacturers industry and Healthcare sector, Biogen's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Biogen's Gross Margin % falls into.



Biogen Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Biogen's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=8872 / 10981.7
=(Revenue - Cost of Goods Sold) / Revenue
=(10981.7 - 2109.7) / 10981.7
=80.79 %

Biogen's Gross Margin for the quarter that ended in Sep. 2022 is calculated as


Gross Margin % (Q: Sep. 2022 )=Gross Profit (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=2039 / 2508.5
=(Revenue - Cost of Goods Sold) / Revenue
=(2508.5 - 469.5) / 2508.5
=81.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Biogen  (NAS:BIIB) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Biogen had a gross margin of 81.28% for the quarter that ended in Sep. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Biogen Gross Margin % Related Terms

Thank you for viewing the detailed overview of Biogen's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Biogen (NAS:BIIB) Business Description

Biogen logo
Address
225 Binney Street, Cambridge, MA, USA, 02142
Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel MS drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is co-promoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with SOBI) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021.
Executives
Murphy Nicole officer: Head of Pharm Ops and Tech BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Izzar Rachid officer: Head of Alzheimer's Disease BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Jones William D /ca/ director
Freire Maria C director C/O ALEXANDRIA REAL ESTATE EQUITIES, INC 26 NORTH EUCLID AVENUE PASADENA CA 91101
Mcdonnell Michael R officer: EVP, Chief Financial Officer C/O IQVIA HOLDINGS INC. 83 WOOSTER HEIGHTS ROAD DANBURY CT 06810
Galdes Alphonse officer: EVP Pharmaceutical Oper & Tech BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Hawkins William A director MEDTRONIC INC 710 MEDTRONIC PKWY, MS LC310 MINNEAPOLIS MN 55432-5604
Mantas Jesus B director BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Kramer Robin officer: VP, Chief Accounting Officer 999 VANDERBILT BEACH ROAD 3RD FLOOR NAPLES FL 34109
Karp Daniel officer: EVP, Corporate Development 225 BINNEY STREET CAMBRIDGE MA 02142
Capello Jeffrey D officer: EVP & Chief Financial Officer BOSTON SCIENTIFIC CORPORATION ONE BOSTON SCIENTIFIC PLACE NATICK MA 01760
Guindo Chirfi officer: EVP Glob. Mkt Acc & Cust Innov C/O BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Gregory Ginger officer: EVP, Human Resources C/O BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Kress Jean-paul officer: EVP Pres Int'l & Global Hd GTO 215 FIRST STREET, SUITE 415 CAMBRIDGE MA 02142
Mckenzie Paul officer: EVP Pharmaceutical Oper & Tech BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Biogen (NAS:BIIB) Headlines

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