- Second quarter 2017 revenues up 37.5%
year-over-year
- Second quarter 2017 GAAP net income up
21.4% year-over-year; Non-GAAP net income up 74.1%
year-over-year
- Completed acquisition of True North
Therapeutics
- Full year 2017 guidance updated;
Expected revenue growth of 23% to 25%
Bioverativ Inc. (NASDAQ: BIVV) today reported financial results
for the second quarter of 2017.
Key financial results include:
- Second quarter 2017 revenues of $289.1
million, a 37.5% increase year-over-year
- Second quarter 2017 GAAP operating
margin of 39.3%; Non-GAAP operating margin of 48.8%
- Second quarter 2017 GAAP earnings per
share of $0.71, up 20.3%; Non-GAAP earnings per share of $0.88, up
72.5% year-over-year.
“In the second quarter, we continued to execute across all
aspects of the business, delivering strong commercial performance,
completing the acquisition of True North Therapeutics, a leader in
complement biology, and advancing our pipeline. The acquisition
added a first-in-class candidate to treat cold agglutinin disease
to our pipeline and plans are in place for this program to enter
Phase 3 trials this year,” said John Cox, Chief Executive Officer
of Bioverativ. “At the same time, we progressed our pipeline with
BIVV001 entering a Phase 1/2a trial for patients with hemophilia
A.”
“We believe we are positioned for continued success in 2017 and
beyond. We will leverage our strong momentum to work to transform
the lives of patients with rare blood disorders and to drive
long-term growth for our shareholders,” continued Mr. Cox.
Revenue Highlights
(In millions, except percentages)
Q2
‘17 Q1 ‘17 Q2 ‘16 Q2 ‘17 v. Q1 ‘17 Q2
‘17 v. Q2 ‘16 ELOCTATE® $ 174.2 $ 155.9 $ 124.6 11.7 % 39.8 %
ALPROLIX® $ 89.7 $ 86.0 $ 80.3 4.3 % 11.7 %
Total Product
Revenues $ 263.9
$ 241.9 $ 204.9 9.1 %
28.8 % Collaboration Revenues $ 25.2 $ 17.2 $
5.4 46.5 % 366.7 %
Total Revenues
$ 289.1 $ 259.1 $ 210.3
11.6 % 37.5 %
Note: Percent changes represented as
increase & (decrease)
The company delivered strong year-over-year and
quarter-over-quarter growth. In the US, product revenues grew 28.6%
year-over-year and 8.9% quarter-over-quarter. Product revenue
outside the US grew 29.7% year-over-year and 9.9%
quarter-over-quarter.
ELOCTATE continues to capture both new patients and patients
switching from short-acting therapies and benefits from an
increased shift to prophylactic treatment in hemophilia A.
Despite increasing competition in hemophilia B, ALPROLIX
benefited from patients moving from on-demand to prophylactic
treatment.
Collaboration revenue continued to deliver strong growth as
Swedish Orphan Biovitrum AB (publ) (Sobi™) executed launches in its
territories. Both royalty and contract manufacturing revenues
increased in the second quarter of 2017.
Expense Highlights
GAAP (In millions, except percentages)
Q2 ‘17 Q1 ‘17 Q2
‘16 Q2 ‘17 v. Q1 ‘17 Q2
‘17 v. Q2 ‘16 Cost of sales $ 80.5 $ 63.3 $ 58.2
27.2 % 38.3 % R&D $ 33.7 $ 36.9 $ 49.9 (8.7 %) (32.5 %)
SG&A $ 61.3 $ 47.0 $ 39.3 30.4 % 56.0 %
Note: Percent changes represented as
increase & (decrease)
Cost of sales rose by $22.3 million compared to the second
quarter of 2016 and by $17.2 million compared to the first quarter
of 2017. This increase was primarily due to increased unit sales
volume of ELOCTATE and ALPROLIX in our territory and manufacturing
revenue in Sobi’s territory. An increase in the royalty rate paid
to Sobi after their first commercial launches in 2016 and a modest
increase in inventory write-offs in the second quarter of 2017
contributed to the cost of sales growth.
Research and development expenses decreased by $16.2 million
compared to the second quarter of 2016 and by $3.2 million compared
to the first quarter of 2017 due largely to prior period
allocations from the former parent company partially offset by
increased workforce costs.
Selling, general and administrative expenses rose by $22.0
million compared to the second quarter of 2016 and by $14.3 million
compared to the first quarter of 2017 driven by increased workforce
costs associated with the build of our commercial and support
infrastructure and acquisition expenses, partially offset by prior
period allocations from the former parent company.
Non-GAAP (In millions, except percentages)
Q2 ‘17 Q1 ‘17 Q2
‘16 Q2 ‘17 v. Q1 ‘17 Q2
‘17 v. Q2 ‘16 Cost of sales $ 79.0 $ 61.9 $ 39.1
27.6 % 102.0 % R&D $ 30.8 $ 38.6 $ 49.2 (20.2 %) (37.4
%) SG&A $ 38.1
$ 39.1 $ 38.2 (2.6 %) (0.3 %)
Note: Percent changes represented as
increase & (decrease)
A reconciliation of GAAP to Non-GAAP financial results can be
found in Table 5 at the end of this release.
Tax
The company’s GAAP effective income tax rate for the three
months ended June 30, 2017 and March 31, 2017 was 33.9% and 37.8%,
respectively. The GAAP effective income tax rate year-to-date was
35.8%. This compares to GAAP effective income tax rates of (1.9%)
and (1.8%) for the prior year three months ended June 30, 2016 and
March 31, 2016, respectively. The differences from the prior year
were primarily due to the realization of deferred tax assets
resulting from net losses and business credit carryforwards in
2016.
The company’s Non-GAAP effective income tax rate was 33.8% and
34.1% during the three months ended June 30, 2017 and 2016,
respectively.
Cash Position
For the second quarter of 2017, the company’s weighted average
diluted shares were 108.4 million. As of June 30, 2017, Bioverativ
had $137.4 million in cash and cash equivalents and $49.5 million
in short-term debt.
On June 28, 2017, Bioverativ completed the acquisition of True
North Therapeutics. Upon the closing, Bioverativ paid an upfront
consideration of $395.7 million plus assumed cash, through a
combination of cash on hand and borrowings.
2017 Financial Guidance
Bioverativ today updated its full year
2017 guidance to the following:
GAAP Non-GAAP
Total Revenue Growth 23% to 25% 23% to 25%
Operating Margin 36% to 39% 41% to 44%
Tax Rate 35%
to 37% 35% to 37%
Bioverativ’s 2017 financial guidance does not include the effect
of business combinations, license and collaboration agreements,
asset acquisitions, intangible asset impairments, changes in fair
value of contingent consideration or restructuring activity that
may occur after the date of this press release.
Bioverativ may incur charges, realize gains, or experience other
events or circumstances that could cause results to vary from this
guidance.
A reconciliation of GAAP to Non-GAAP financial guidance can be
found in Table 6 at the end of this release.
Recent Corporate Events
- Successfully completed acquisition of
True North Therapeutics, a privately-held, clinical stage rare
disease biotechnology company. The acquisition strengthens
Bioverativ’s leadership in rare blood disorders with BIVV009, a
first-in-class product candidate to treat cold agglutinin disease,
a chronic autoimmune hemolytic anemia with no approved therapies
and a second molecule, BIVV020, a discovery-stage, follow-on
monoclonal antibody with the potential for less-frequent
dosing.
- The U.S. Food and Drug Administration
(FDA) accepted the company’s Investigational New Drug (IND)
application for BIVV001 (also known as rFVIIIFc-VWF-XTEN), a novel,
investigational factor VIII therapy designed to potentially extend
protection from bleeds with prophylaxis dosing of once weekly or
longer for people with hemophilia A. BIVV001 builds on the
company’s existing Fc fusion technology by adding a region of von
Willebrand factor and XTEN polypeptides to potentially extend its
time in circulation. It is the only investigational factor VIII
therapy in development that is designed to overcome the von
Willebrand factor ceiling, which is believed to impose a half-life
limitation on current factor VIII therapies.
- Presented a wide breadth of data at the
International Society on Thrombosis and Haemostasis (ISTH) 2017
Congress from July 8-13, 2017, including clinical data from its
leading extended half-life therapies ALPROLIX and ELOCTATE and
preclinical data from its hemophilia pipeline.
- Appointed Geno J. Germano to the
company’s board of directors. Mr. Germano is a global
biopharmaceutical executive with more than three decades of
experience in the industry. Mr. Germano most recently served as
President of Intrexon Corporation, a leader in synthetic biology.
He also previously held the positions of Group President, Global
Innovative Pharma Business, and President and General Manager,
Specialty Care and Oncology at Pfizer, Inc. Prior to joining
Pfizer, Mr. Germano held numerous executive and leadership roles at
Wyeth Pharmaceuticals, including President of Wyeth U.S., and
Johnson & Johnson.
Conference Call and Webcast
The company's earnings conference call for the second quarter
will be broadcast via the internet at 8:00 a.m. EDT on August 3,
2017, and will be accessible through the Investors section of
Bioverativ’s homepage, investors.bioverativ.com. Supplemental
information in the form of a slide presentation will also be
accessible at the same location at the time of the conference call
and will be subsequently available on the website for at least one
month.
About Bioverativ
Bioverativ (NASDAQ: BIVV) is a global biotechnology company
dedicated to transforming the lives of people with hemophilia and
other rare blood disorders through world-class research,
development and commercialization of innovative therapies. Launched
in 2017 following separation from Biogen Inc., Bioverativ builds
upon a strong heritage of scientific innovation and is committed to
actively working with the blood disorders community. The company’s
mission is to create progress for patients where they need it most
and its hemophilia therapies when launched represented the first
major advancements in hemophilia treatment in more than two
decades. For more information, visit www.bioverativ.com or follow
@bioverativ on Twitter.
Safe Harbor
This press release contains forward-looking statements,
including statements relating to: Bioverativ’s business and
strategic objectives; growth prospects; commercial and pipeline
progress; and financial information and guidance. These
forward-looking statements may be accompanied by such words as
“anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,”
“intend,” “may,” “plan,” “potential,” “project,” “target,” “will”
and other words and terms of similar meaning. You should not place
undue reliance on these statements.
These forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those
reflected in such statements, including: Bioverativ’s dependence on
revenues from sales of ELOCTATE and ALPROLIX; failure to compete
effectively due to significant product competition in the markets
in which Bioverativ operates; product quality or safety concerns,
including the occurrence of adverse safety events; product
development risks; risks associated with clinical trials; risks
relating to actions of regulatory authorities; risks related to
reliance on third parties for manufacturing, supply and
distribution of Bioverativ’s products and product candidates;
difficulties in obtaining and maintaining adequate coverage,
pricing and reimbursement for Bioverativ’s products; failure to
obtain and maintain adequate protection for intellectual property
and other proprietary rights; the outcome of any significant legal
proceedings; risks of doing business in international and emerging
markets; risks associated with current and potential future
healthcare reforms; failure to identify and execute on business
development and research and development opportunities;
Bioverativ’s dependence on relationships with collaborators and
other third parties for revenue and other aspects of its business;
loss of key employees or inability to attract and retain key
personnel; disruptions to, or other adverse impact on Bioverativ’s
relationships with its customers and other business partners;
adverse effects to Bioverativ liquidity; ability to access capital
and credit markets; the adequacy of the Bioverativ’s cash flows
from operations; failure to comply with legal and regulatory
requirements affecting Bioverativ’s business; the impact of global
economic conditions; fluctuations in foreign exchange and interest
rates; changes in the law concerning the taxation of income; risks
relating to technology failures or breaches; Bioverativ’s lack of
operating history as a standalone business; risks relating to the
separation from Biogen; and other risks and uncertainties described
in the Risk Factors section of Bioverativ’s quarterly and annual
filings with the Securities and Exchange Commission.
These statements are based on Bioverativ’s current beliefs and
expectations and speak only as of the date of this release.
Bioverativ does not undertake any obligation to publicly update any
forward-looking statements, whether as a result of new information,
future developments or otherwise.
TABLE 1
(In millions, except percentages)
Q2 ‘17 Q1 ‘17 Q2 ‘16
Q2 ‘17 v. Q1 ‘17 Q2 ‘17 v. Q2 ‘16 ELOCTATE (US) $
150.4 $ 134.6 $ 110.2 11.7 %
36.5
% ALPROLIX (US) $ 72.4 $ 69.9 $ 63.0 3.6 %
14.9
%
US Product Revenues $ 222.8
$ 204.5 $ 173.2 8.9 %
28.6
% ELOCTATE (Ex-US) $ 23.8 $ 21.3 $ 14.4 11.7 %
65.3
% ALPROLIX (Ex-US) $ 17.3 $ 16.1 $ 17.3
7.5
%
0.0
%
Ex-US Product Revenues $ 41.1
$ 37.4 $ 31.7
9.9
%
29.7
% Collaboration Revenues $ 25.2 $ 17.2 $ 5.4 46.5 %
366.7 %
Total Revenues $ 289.1
$ 259.1 $ 210.3 11.6 %
37.5
%
TABLE 2
Consolidated Statements of Income
(In millions, except per share
amounts)
For the Three Months Ended For the Six Months Ended
June 30, June 30, 2017
2016 2017 2016 Revenues:
Product, net $ 263.9 $ 204.9 $ 505.8 $ 387.7 Collaboration
25.2 5.4 42.4 14.3 Total
revenues 289.1 210.3 548.2
402.0 Cost and expenses: Cost of sales 80.5 58.2
143.8 90.7 Research and development 33.7 49.9 70.6 104.2 Selling,
general and administrative 61.3 39.3
108.3 78.3 Total cost and expenses
175.5 147.4 322.7 273.2
Income from operations 113.6 62.9 225.5 128.8 Other income
(expense), net 3.0 (0.6 )
2.6
(1.0 ) Income before income tax expense (benefit) 116.6 62.3
228.1 127.8 Income tax expense (benefit) 39.5 (1.2 )
81.7
(2.4 ) Net income $ 77.1 $ 63.5 $ 146.4 $
130.2 Diluted earnings per share $ 0.71 $ 0.59 $ 1.35 $ 1.21
Weighted average shares used in 108.4 108.0 108.3 108.0 calculating
diluted earnings per share
TABLE 3
Consolidated Balance Sheets
(In millions)
As of As of June 30, December 31,
2017 2016 ASSETS Current assets: Cash and cash
equivalents $ 137.4 $ - Accounts receivable, net 179.0 149.4
Inventory 50.0 302.0 Due from Biogen 49.5 - Other current assets
49.8 24.2 Total current assets 465.7 475.6 Restricted
cash 40.0 - Property, plant and equipment, net 25.0 28.4 Intangible
assets, net 638.8 51.7 Goodwill 164.6 - Deferred tax assets 0.7
154.2 Other long-term assets 22.7 22.0 Total assets $
1,357.5 $ 731.9
LIABILITIES AND EQUITY Current liabilities:
Accounts payable $ 17.2 $ 12.7 Accrued expenses and other current
liabilities 142.8 89.3 Current portion of line of credit 49.5 - Due
to Biogen 20.8 - Total current liabilities
230.3 102.0 Due to True North Therapeutics equityholders 40.0 -
Other long-term liabilities 87.2 63.7 Deferred tax liabilities
145.4 - Contingent consideration 182.4 - Total
liabilities $ 685.3 $ 165.7 Total equity 672.2 566.2
Total liabilities and equity $ 1,357.5 $ 731.9
TABLE 4
Consolidated Statements of Cash Flows
(in millions)
For the Six Months Ended June 30, 2017
2016 Net cash flows provided by operating activities
$ 241.4 $ 157.2 Net cash flows used in investing activities (406.3
) (28.8 ) Net cash flows provided by (used in) financing activities
301.9 (128.4 ) Effect of foreign exchange rate changes on cash and
cash equivalents 0.4 - Net increase in cash and cash equivalents
137.4 - Cash and cash equivalents, beginning of the period - - Cash
and cash equivalents, end of the period $ 137.4 $ -
TABLE 5
GAAP to Non-GAAP Reconciliation
An itemized reconciliation between net income on a GAAP and
Non-GAAP basis is as follows:
(In millions, except EPS)
Q2 2017
GAAP
Share-BasedComp.
(1)
Amort. ofIntangibles(2)
BiogenCambridgeMfr. Facility(3)
Upfront &MilestonePayments(4)
Release ofValuationAllowance(5)
Spin-RelatedCosts
(6)
TNTTransactionCost
(7)
Non-GAAP Total revenues 289.1 - - - - - - - 289.1
Cost of sales (80.5 ) - 1.5 - - - - - (79.0 ) R&D (33.7 ) 1.4 -
- - - 1.5 - (30.8 ) SG&A (61.3 ) 10.4 - - - - 3.8 9.0 (38.1 )
Operating margin 39.3 % 48.8 % Other income (expense), net 3.0
- - - - - - - 3.0 Income before taxes 116.6 11.8 1.5 - - - 5.3 9.0
144.2 Income tax expense (benefit) (8) 39.5 4.0 0.5 - - - 1.8 3.0
48.8 Tax rate 33.9 % 33.8 % Net income 77.1 7.8 1.0 - - - 3.5 6.0
95.4 Diluted EPS 0.71 0.88
(In millions, except EPS)
Q1 2017
GAAP
Share-BasedComp.
(1)
Amort. ofIntangibles(2)
BiogenCambridgeMfr. Facility(3)
Upfront &MilestonePayments(4)
Release ofValuation
Allowance(5)
Spin-RelatedCosts
(6)
TNTTransactionCost
(7)
Non-GAAP Total revenues 259.1 - - - - - - - 259.1
Cost of sales (63.3 ) - 1.4 - - - - - (61.9 ) R&D (36.9 ) 0.8 -
- (3.0 ) - 0.5 - (38.6 ) SG&A (47.0 ) 5.2 - - - - 2.7 - (39.1 )
Operating margin 43.2 % 46.1 % Other income (expense), net (0.4 ) -
- - - - - - (0.4 ) Income before taxes 111.5 6.0 1.4 - (3.0 ) - 3.2
- 119.1 Income tax expense (benefit) (8) 42.2 2.3 0.5 - (1.1 ) -
1.2 - 45.1 Tax rate 37.8 % 37.9 % Net income 69.3 3.7 0.9 - (1.9 )
- 2.0 - 74.0 Diluted EPS 0.64 0.68
(In millions, except EPS)
H1
2017
GAAP
Share-BasedComp.
(1)
Amort. ofIntangibles(2)
BiogenCambridgeMfr. Facility(3)
Upfront &MilestonePayments(4)
Release ofValuationAllowance(5)
Spin-RelatedCosts
(6)
TNTTransactionCost
(7)
Non-GAAP Total revenues 548.2 -
- - - -
- - 548.2 Cost of sales (143.8 )
- 2.9 - - - - - (140.9 ) R&D (70.6 ) 2.2 - - (3.0 ) - 2.0 -
(69.4 ) SG&A (108.3 ) 15.6 - - - - 6.5 9.0 (77.2 ) Operating
margin 41.1 % 47.6 % Other income (expense), net 2.6
- - - - - - - 2.6 Income before taxes 228.1 17.8 2.9 - (3.0 ) - 8.5
9.0 263.3 Income tax expense (benefit) (8) 81.7 6.3 1.0 - (1.1 ) -
3.0 3.0 93.9 Tax rate 35.8 % 35.7 % Net income 146.4 11.5 1.9 -
(1.9 ) - 5.5 6.0 169.4 Diluted EPS 1.35 1.56
(In millions, except EPS)
Q2 2016
GAAP
Share-BasedComp.
(1)
Amort. ofIntangibles(2)
BiogenCambridgeMfr. Facility(3)
Upfront &MilestonePayments(4)
Release ofValuationAllowance(5)
Spin-RelatedCosts
(6)
TNTTransactionCost
(7)
Non-GAAP Total revenues 210.3 - - - - - - - 210.3
Cost of sales (58.2 ) 2.0 1.3 15.8 - - - - (39.1 ) R&D (49.9 )
0.7 - - - - - - (49.2 ) SG&A (39.3 ) 1.1 - - - - - - (38.2 )
Operating margin 29.9 % 39.8 % Other income (expense), net (0.6 ) -
- - - - - - (0.6 ) Income before taxes 62.3 3.8 1.3 15.8 - - - -
83.2 Income tax expense (benefit) (8) (1.2 ) 1.3 0.4 5.4 - 22.5 - -
28.4 Tax rate (1.9 %) 34.1 % Net income 63.5 2.5 0.9 10.4 - (22.5 )
- - 54.8 Diluted EPS 0.59 0.51
(In millions, except EPS)
Q1 2016
GAAP
Share-BasedComp.
(1)
Amort. ofIntangibles(2)
BiogenCambridgeMfr. Facility(3)
Upfront &MilestonePayments(4)
Release ofValuationAllowance(5)
Spin-RelatedCosts
(6)
TNTTransaction
Cost
(7)
Non-GAAP
Total revenues 191.7 - - - - - - - 191.7 Cost of sales (32.5
) 0.9 0.7 - - - - - (30.9 ) R&D (54.3 ) 0.8 - - - - - - (53.5 )
SG&A (39.0 ) 0.8 - - - - - - (38.2 ) Operating margin 34.4 %
36.0 % Other income (expense), net (0.4 ) - - - - - - - (0.4 )
Income before taxes 65.5 2.5 0.7 - - - - -
68.7
Income tax expense (benefit) (8) (1.2 ) 0.8 0.3 - - 23.6
- -
23.5
Tax rate (1.8 %) 34.2 % Net income 66.7 1.7 0.4 - - (23.6 ) - -
45.2
Diluted EPS 0.62 0.42
(In millions, except EPS)
H1
2016
GAAP
Share-BasedComp.
(1)
Amort. ofIntangibles(2)
BiogenCambridgeMfr. Facility(3)
Upfront &MilestonePayments(4)
Release ofValuationAllowance(5)
Spin-RelatedCosts
(6)
TNTTransaction
Cost
(7)
Non-GAAP Total revenues 402.0 -
- - - -
- - 402.0 Cost of sales (90.7 )
2.9 2.0 15.8 - - - - (70.0 ) R&D (104.2 ) 1.5 - - - - - -
(102.7 ) SG&A (78.3 ) 1.9 - - - - - - (76.4 ) Operating margin
32.0 % 38.0 % Other income (expense), net (1.0 ) - - - - - - - (1.0
) Income before taxes 127.8 6.3 2.0 15.8 - - - - 151.9 Income tax
expense (benefit) (8) (2.4 ) 2.1 0.7 5.4 - 46.1 - - 51.9 Tax rate
(1.9 %) 34.2 % Net income 130.2 4.2 1.3 10.4 - (46.1 ) - - 100.0
Diluted EPS 1.21 0.93
TABLE 6
Updated Guidance Operating Margin
Reconciliation
GAAP operating margin 36 - 39% Adjustments* ~5% Non-GAAP
operating margin 41 – 44%
Operating margin includes total revenues less cost of sales,
research and development expenses, and selling, general and
administrative expenses.
*Adjustments include: Share-based compensation, amortization of
intangible assets, upfront and milestone payments, spin-related
costs, and acquisition related costs.
Use of Non-GAAP Financial Measures
We supplement our consolidated financial statements presented on
a GAAP basis by providing additional measures which may be
considered “Non-GAAP” financial measures under applicable SEC
rules. We believe that the disclosure of these Non-GAAP financial
measures provides additional insight into the ongoing economics of
our business and reflects how we manage our business internally,
set operational goals and forms the basis of our management
incentive programs. These Non-GAAP financial measures are not in
accordance with generally accepted accounting principles in the
United States and should not be viewed in isolation or as a
substitute for reported, or GAAP, financial measures.
Our Non-GAAP financial measures exclude the following items from
reported GAAP financial measures:
1. Share-Based Compensation Expense
We exclude the costs associated with incentive stock and
employee stock purchase plans we maintain for the benefit of our
officers, directors, and employees. For the periods prior to
February 1, 2017, our share based compensation expense was derived
solely from equity awards granted by Biogen to the company’s
employees. Share-based compensation expense subsequent to the
separation relates to equity awards granted under our share-based
plans to our officers, directors, and employees including those
awards that converted from Biogen.
2. Amortization of Developed Technology Intangible
Assets
We exclude the amortization of intangible assets to facilitate
an evaluation of current and past operating performance,
particularly in terms of cash returns, and is similar to how
management internally assesses performance. The developed
technology intangibles primarily relate to approval milestones for
ALPROLIX paid to the former Syntonix shareholders.
3. Biogen
Cambridge Manufacturing Facility Shut Down
We exclude costs associated with Biogen’s Cambridge
manufacturing facility shut down, which was primarily dedicated to
hemophilia manufacturing. On December 31, 2016, the facility was
subleased by Brammer Bio, LLC and is no longer used for hemophilia
manufacturing. Management believes these costs are not
representative of our ongoing operating results.
4. Upfront
and Milestone Payments
We exclude costs associated with upfront and milestone payments
relating to collaborative arrangements as management believes these
costs are uncertain, result in different payment and expense
recognition patterns than internal R&D activities, and are not
representative of our ongoing operating results.
5. Release of
Valuation Allowance
We had established a valuation allowance as of December 31, 2015
given our cumulative losses and uncertainty about our cost
structure as a standalone company. During 2016, we determined that
it is more likely than not that our deferred tax assets will be
realizable and released our valuation allowance. Management
believes the release of the valuation allowance is not
representative of our ongoing operating results.
6. Spin-Related Costs
In connection with our separation from Biogen, we have incurred
certain separation related expenses, which management believes are
not representative of our ongoing operations.
7. TNT
Transaction Costs
In connection with our acquisition of True North Therapeutics,
we have incurred certain acquisition related expenses, which
management believes are not representative of our ongoing
operations. These expenses include banker, legal, tax, and other
expenses.
8. Tax
Effects of the Above Non-GAAP Adjustments
We include an adjustment to reflect the related tax effect of
all reconciling items within our reconciliation of our GAAP to
Non-GAAP adjusted net income.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170802006490/en/
INVESTOR CONTACT:Bioverativ Inc.Susan Altschuller, Ph.D.,
+1 781-663-4360IR@bioverativ.com
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