Bioverativ (BIVV) 10-Q 27 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 25, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Bioverativ Inc.
Entity Central Index Key	1,681,689
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		108,199,860
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Product, net	$ 274.8	$ 217.1	$ 780.7	$ 604.8
Collaboration	16.8	12.1	59.1	26.4
Total revenues	291.6	229.2	839.8	631.2
Cost and expenses:
Cost of sales	65.5	71.5	209.3	162.2
Research and development	70.1	42.7	140.7	146.9
Selling, general and administrative	52.2	35.7	160.5	114
Total cost and expenses	187.8	149.9	510.5	423.1
Income from operations	103.8	79.3	329.3	208.1
Other income (expense), net	1.2	(0.1)	3.8	(1.1)
Income before income tax expense (benefit)	105	79.2	333.1	207
Income tax expense (benefit)	37.1	(1.3)	118.8	(3.7)
Net income	$ 67.9	$ 80.5	$ 214.3	$ 210.7
Net income per share:
Basic earnings (in dollars per share)	$ 0.63	$ 0.75	$ 1.98	$ 1.95
Diluted earnings (in dollars per share)	$ 0.63	$ 0.75	$ 1.98	$ 1.95
Weighted average shares used in calculating:
Basic earnings per share (in shares)	108.2	108	108.1	108
Diluted earnings per share (in shares)	108.6	108	108.4	108
Other comprehensive income:
Net income	$ 67.9	$ 80.5	$ 214.3	$ 210.7
Currency translation adjustment	0.4		(2.1)	4
Total other comprehensive income	0.4		(2.1)	4
Comprehensive income	$ 68.3	$ 80.5	$ 212.2	$ 214.7

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 224.1	$ 0
Accounts receivable, net	197.6	149.4
Inventory	30.5	302
Due from Biogen	33.1
Other current assets	88.4	24.2
Total current assets	573.7	475.6
Restricted cash	40
Property, plant and equipment, net	24.3	28.4
Intangible assets, net	637.4	51.7
Goodwill	171.2
Deferred tax assets, net	0.7	154.2
Other long-term assets	6.2	22
Total assets	1,453.5	731.9
Current liabilities:
Accounts payable	23.6	12.7
Accrued expenses and other current liabilities	229.6	89.3
Due to Biogen	32
Total current liabilities	285.2	102
Due to True North Therapeutics equityholders	40
Other long-term liabilities	81.1	63.7
Deferred tax liabilities, net	154.3
Contingent consideration	142.6
Total liabilities	703.2	165.7
Commitments and contingencies (Note 16)
Equity:
Preferred stock, $0.001 par value (shares authorized of 50,000,000 at September 30, 2017 and 0 at December 31, 2016; no shares issued and outstanding at September 30, 2017 or at December 31, 2016)
Common stock, $0.001 par value (shares authorized of 800,000,000 at September 30, 2017 and 1,000 at December 31, 2016; shares issued and outstanding of 108,183,974 at September 30, 2017 and 1,000 at December 31, 2016)	0.1
Additional paid-in capital	559.5
Retained earnings	191
Net parent company investment		564.4
Accumulated other comprehensive income (loss)	(0.3)	1.8
Total equity	750.3	566.2
Total liabilities and equity	$ 1,453.5	$ 731.9

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	50,000,000	0
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	800,000,000	1,000
Common stock, shares issued	108,183,974	1,000
Common stock, shares outstanding	108,164,483	1,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 214.3	$ 210.7
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	11.5	39.5
Share-based Compensation	27	11.3
Deferred taxes	6.1
Remeasurement of contingent consideration	2.3
Changes in operating assets and liabilities, net:
Accounts receivable	(48.2)	(32.3)
Inventory	92.5	(31.1)
Due from Biogen, net	(1.1)
Other assets	(60.2)	(9)
Accounts payable, accrued expenses and other current liabilities	116	21.1
Other liabilities	17.4	23.1
Net cash flows provided by operating activities	377.6	233.3
Cash flows from investing activities:
Purchases of property, plant and equipment	(11.6)	(3.8)
Acquisition of True North Therapeutics, net of cash	(395.7)
Acquisition of intangible assets		(26.5)
Net cash flows used in investing activities	(407.3)	(30.3)
Cash flows from financing activities:
Transfers to Biogen	(45.2)	(203)
Cash from Biogen upon separation	325
Working capital adjustments paid to Biogen, net	(23.5)
Shares issued under employee benefit plans	(3.3)
Net cash flows provided by (used) in financing activities	253	(203)
Effect of foreign exchange rate changes on cash and equivalents	0.8
Net increase in cash and cash equivalents	224.1	0
Cash and cash equivalents, beginning of the period	0	$ 0
Cash and cash equivalents, end of the period	224.1
Supplemental cash flow disclosure:
Cash paid for income taxes	$ 90.5

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Millions	Common Stock	Additional Paid-in Capital	Retained Earnings	Net Parent Company Investment	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2015				$ 384.4	$ 0.3	$ 384.7
Increase (decrease) in stockholders' equity
Net income				210.7		210.7
Transfers to Biogen				(193.5)		(193.5)
Foreign currency translation adjustments					4	4
Ending Balance at Sep. 30, 2016				401.6	4.3	405.9
Beginning Balance at Dec. 31, 2016				564.4	1.8	$ 566.2
Beginning Balance (in shares) at Dec. 31, 2016						1,000
Increase (decrease) in stockholders' equity
Net income			$ 191	23.3		$ 214.3
Separation-related adjustments		$ 2.1		(312.4)		(310.3)
Transfers to Biogen				(43)		(43)
Cash from Biogen				325		325
Working capital adjustments paid to Biogen, net				(23.5)		(23.5)
Reclassification of net parent company investment to additional paid-in capital		533.8		$ (533.8)
Issuance of common stock upon separation	$ 0.1	(0.1)
Issuance of common stock upon separation (in shares)	108,000,000
Share-based compensation expense		27				27
Shares issued under employee benefit plans		(3.3)				(3.3)
Shares issued under employee benefit plans (in shares)	200,000
Foreign currency translation adjustments					(2.1)	(2.1)
Ending Balance at Sep. 30, 2017	$ 0.1	$ 559.5	$ 191		$ (0.3)	$ 750.3
Ending Balance (in shares) at Sep. 30, 2017	108,200,000					108,164,483

Nature of Business and Basis of

Nature of Business and Basis of Preparation	9 Months Ended
	Sep. 30, 2017
Nature of Business and Basis of Preparation
Nature of Business and Basis of Preparation	1. Nature of Business and Basis of Presentation Nature of Business Bioverativ separated from Biogen on February 1, 2017 as a result of a special dividend distribution of all the outstanding shares of common stock of Bioverativ to Biogen stockholders. The distribution was made to Biogen stockholders of record as of the close of business on January 17, 2017, who received one share of Bioverativ common stock for every two shares of Biogen common stock held as of such date. As a result of the distribution, Bioverativ became an independent public company. Bioverativ holds the assets and liabilities of Biogen’s former hemophilia business. Bioverativ is focused on the discovery, research, development and commercialization of innovative therapies for the treatment of hemophilia and other rare blood disorders. Bioverativ’s marketed products include ELOCTATE and ALPROLIX, extended half‑life factors for the treatment of hemophilia A and hemophilia B, respectively. Pursuant to a development and commercialization agreement, Bioverativ collaborates with Swedish Orphan Biovitrum AB (publ) (Sobi) to jointly develop and commercialize ELOCTATE and ALPROLIX globally. Sobi has responsibility for commercialization of ELOCTATE and ALPROLIX in Europe, Russia and certain countries in Northern Africa and the Middle East, while Bioverativ retains rights to commercialize those therapies in the United States, Japan, Canada, Australia, Latin American countries and all other markets excluding Sobi’s commercialization territory. See Note 3, Collaborations , for further information on Bioverativ’s collaboration with Sobi. Bioverativ’s pipeline includes programs in hemophilia, cold agglutinin disease, sickle cell disease, beta thalassemia, and other rare blood disorders. Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States (U.S. GAAP). We operate as one operating segment, which is discovering, researching, developing and commercializing innovative therapies for the treatment of hemophilia and other rare blood disorders. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Form 10-K). Our accounting policies are described in the “Notes to Consolidated Financial Statements” in our 2016 Form 10-K and updated, as necessary, in our Quarterly Reports on Form 10-Q. The December 31, 2016 condensed consolidated balance sheet data presented for comparative purposes was derived from our audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three and nine months ended September 30, 2017, are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. The accompanying unaudited condensed consolidated financial statements reflect the consolidated financial position and consolidated results of operations of the company as an independent, publicly-traded company for the period after the February 1, 2017 separation. The unaudited condensed consolidated financial statements also reflect the consolidated financial position and consolidated results of operations of the company as a consolidated reporting entity of Biogen for periods prior to the separation. During the nine months ended September 30, 2017, the company recorded certain separation related adjustments in its condensed consolidated statement of equity. The separation related adjustments primarily related to differences between assets and liabilities transferred to Bioverativ as a result of the separation and assets and liabilities reported in the company’s consolidated balance sheet as of January 31, 2017. Separation related adjustments for the nine months ended September 30, 2017 totaled $310.3 million consisting primarily of inventory and deferred tax assets retained by Biogen upon separation. Additional separation related adjustments could be recorded in future periods. Prior to the separation, the unaudited condensed consolidated financial statements were prepared on a standalone basis and were derived from Biogen’s consolidated financial statements and accounting records as if the former hemophilia business of Biogen had been standalone business. Accordingly, financial information for periods prior to the separation is shown on a carve-out basis for the hemophilia business as part of Biogen. The unaudited condensed consolidated financial statements reflected the company’s financial position, results of operations and cash flows as the business was operated as part of Biogen prior to the distribution. Prior to the separation, the unaudited condensed consolidated financial statements included the attribution of certain assets and liabilities that were historically held at the Biogen corporate level but which were specifically identifiable or attributable to the company. All intercompany transactions and accounts within the company were eliminated. All transactions between the company and Biogen were considered to be effectively settled in the unaudited condensed consolidated financial statements at the time the transaction was recorded. The total net effect of the settlement of the transactions with Biogen is reflected in the unaudited condensed consolidated statements of cash flows in periods prior to the separation as a financing activity and in the unaudited condensed consolidated balance sheet as net parent company investment. Prior to the separation, these unaudited condensed consolidated financial statements include an allocation from Biogen to us for certain research and development and selling, general and administrative costs not directly attributable to the hemophilia business of Biogen. The research and development costs include depreciation and other facility‑based expenses, regulatory affairs function, pharmacovigilance, other infrastructure and management costs supporting multiple projects. The selling, general and administrative costs include certain services provided by Biogen, which include, but are not limited to, executive oversight, treasury, finance, legal, human resources, tax planning, internal audit, financial reporting, information technology, investor relations, shared services, insurance, employee benefits and incentives and share‑based compensation. Allocated amounts have been included in research and development, selling, general and administrative and other income and expense. These expenses have been allocated to the company based on direct usage or benefit where specifically identifiable, with the remainder allocated primarily based on hours or direct costs. The company considers the expense methodology and results to be reasonable for all periods presented. However, the allocations may not be indicative of the actual expense that would have been incurred had the company operated as an independent, publicly traded company for the periods presented. In periods prior to the separation, Bioverativ’s employees participated in various benefit and share-based compensation plans maintained by Biogen. A portion of the cost of those plans was included in the company’s financial statements. However, the unaudited condensed consolidated balance sheets in periods prior to the separation did not include any equity related to share-based compensation plans. Prior to the separation, the company’s equity balance represented the excess of total assets over total liabilities, including the due to/from balances between the company and Biogen (net parent company investment) and cumulative translation adjustment. In connection with the separation, the company’s net parent company investment balance was reclassified to additional paid-in capital. Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. In first quarter of 2017, the company concluded that it was appropriate to classify costs associated with medical affairs as research and development to better align with Bioverativ’s organizational structure. Previously, such costs had been classified as selling, general and administrative. As a result, the amounts that were previously presented in selling, general and administrative were reclassified in research and development for each of the following periods in 2016. For the Three Months Ended For the Year Ended (In millions) March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 $ 7.7 $ 8.9 $ 7.7 $ 6.9 $ 31.2 Use of Estimates The preparation of our condensed consolidated financial statements requires us to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis we evaluate our estimates, judgments and methodologies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. Actual results may differ from these estimates under different assumptions or conditions. Summary of Significant Accounting Policies The following represent new accounting policies that were not included in the “Notes to Consolidated Financial Statements” in our 2016 Form 10-K. Cash and Cash Equivalents We consider only those investments which are highly liquid, readily convertible to cash and that mature within three months from date of purchase to be cash equivalents. The carrying values of money market funds approximate fair value due to their short-term maturities. Acquired In-Process Research and Development (IPR&D) IPR&D represents the fair value of research and development assets that have not reached technological feasibility. The value assigned to acquired IPR&D is determined by estimating the costs to develop the acquired technology into a commercial product, estimating revenue and costs associated with the product, adjusting the net cash flows for probability of success and discounting to present value. The estimated net cash flows consider the relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by us and our competitors. The rates utilized to discount the net cash flows to their present value are commensurate with the stage of development of the projects and uncertainties in the economic estimates used in the projections. In estimating the probability of success, we utilize data regarding similar assets events from several sources, including industry studies and our own experience. Upon the acquisition of IPR&D, we complete an assessment of whether our acquisition constitutes the purchase of a single asset or a group of assets. We consider multiple factors in this assessment, including the nature of the technology acquired, the presence or absence of separate cash flows, the development process and stage of completion, quantitative significance and our rationale for entering into the transaction. If we acquire a business as defined under applicable accounting standards, then the acquired IPR&D is capitalized as an intangible asset. If we acquire an asset or group of assets that do not meet the definition of a business, then the acquired IPR&D is expensed on its acquisition date if it has no future alternative use . Future costs to develop these assets are recorded to research and development as they are incurred. When performing our impairment assessment, we calculate the fair value using the same methodology as described above. If the carrying value of our acquired IPR&D exceeds its fair value, then the intangible asset is written-down to its fair value. Goodwill Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized, but reviewed for impairment. Goodwill is reviewed annually and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. We compare the fair value of our reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of our reporting unit, then we would need to determine the implied fair value of our reporting unit’s goodwill. If the carrying value of our reporting unit’s goodwill exceeds its implied fair value, then we would record an impairment loss equal to the difference. As described above in Basis of Presentation , we operate in one operating segment which we consider our only reporting unit. Contingent Consideration The consideration for our acquisition includes future payments that are contingent upon the occurrence of various events. We record a liability for such contingent payments at fair value on the acquisition date. We estimate the fair value of contingent consideration through valuation models that incorporate probability-adjusted assumptions related to the likelihood of achieving the milestones and making related payments. Our contingent consideration is remeasured each reporting period. Changes in the fair value of our contingent consideration are recognized in our condensed consolidated statements of income. Changes in the fair value of the contingent consideration can result from changes to one or multiple inputs, including changes to the discount rates, changes in the probability of certain clinical events, regulatory approval, and the amount or timing of development and sales based milestones. Discount rates in our valuation models represent a measure of the weighted average cost of capital of the target associated with settling the liability. The period over which we discount our contingent consideration is based on the current development stage of the product candidates and our specific development plan for that product candidate. In estimating the probability of success, we utilize data regarding similar milestone events from several sources, including industry studies and our own experience. These fair value measurements are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period. Non-designated Foreign Currency Contracts Currency forward contracts are used as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These currency forward contracts are not designated as cash flow, fair value or net investment hedges. The currency forward contracts are marked-to-market with changes in fair value recorded to other income (expense) and are entered into for periods consistent with currency transaction exposures, generally less than one year. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that we adopt as of the specified effective date. The following new standards issued by FASB were adopted by the company on January 1, 2017: · Accounting Standards Update (ASU) No. 2015‑11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The new standard applies only to inventory for which cost is determined by methods other than last-in, first-out and the retail inventory method, which includes inventory that is measured using first in, first out (FIFO) or average cost. Inventory within the scope of this standard is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of this standard did not have a material impact on our financial position, results of operations or statements of cash flows upon adoption. · ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The new standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The adoption of this standard did not have a material impact on our financial position, results of operations or statements of cash flows upon adoption. · ASU No. 2016‑09, Compensation‑Stock Compensation (Topic 718): Improvements to Employee Share‑Based Payment Accounting. The new standard requires recognition of the income tax effects of vested or settled awards in the income statement and involves several other aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The adoption of this standard did not have a material impact on our financial position, results of operations or statements of cash flows upon adoption. The following new standards have been issued by FASB but are not yet effective. In May 2014 the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has subsequently issued amendments to ASU No. 2014-09 that have the same effective date and transition date of January 1, 2018. We expect to adopt these standards using the full retrospective method. Our assessment of the potential impact that this standard may have on our financial position, results of operations and disclosures will be completed in the fourth quarter of 2017. In January 2016 the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard amends certain aspects of accounting and disclosure requirements of financial instruments, including the requirement that equity investments with readily determinable fair values be measured at fair value with changes in fair value recognized in a company's results of operations. The new standard will be effective for us on January 1, 2018. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position or results of operations. In February 2016 the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires that all lessees recognize the assets and liabilities that arise from leases on their balance sheet and disclose qualitative and quantitative information about their leasing arrangements. The new standard will be effective for us on January 1, 2019. We are currently evaluating the impact that this standard may have on our results of operations, financial position and disclosures. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our results of operations but may materially impact our net financial position. In October 2016 the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other Than Inventory. This new standard eliminates the deferral of the tax effects of intra-entity transfers of an asset other than inventory. Under the new standard, entities should recognize the income tax consequences on an intra-entity transfer of an asset other than inventory when the transfer occurs. This new standard will be effective for us on January 1, 2018 and will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position. In January 2017 the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets and activities is not a business. This new standard will be effective for us on January 1, 2018, however early adoption is permitted. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position. In January 2017 the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. This new standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This new standard will be effective for us on January 1, 2020; however, early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial position or results of operations. In May 2017 the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This new standard provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. This new standard will be effective for us on January 1, 2018, however early adoption is permitted. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position or results of operations.

Acquisition of True North Thera

Acquisition of True North Therapeutics, Inc.	9 Months Ended
	Sep. 30, 2017
Acquisition of True North Therapeutics, Inc.
Acquisition of True North Therapeutics, Inc.	2. Acquisition of True North Therapeutics, Inc. On June 28, 2017, Bioverativ acquired all of the outstanding equity of True North Therapeutics, Inc. (True North), a clinical stage biopharmaceutical company focused on the discovery, development and commercialization of first-in-class product candidates for complement-mediated diseases. At closing, we paid True North equityholders as of the acquisition date (True North equityholders) upfront consideration of $395.7 million plus assumed cash. True North equityholders are also eligible to receive additional payments of up to $425.0 million contingent on the achievement of future development, regulatory and sales milestones. The upfront consideration was paid with cash. The acquisition of True North was accounted for as a business combination using the acquisition method of accounting. The assets acquired and the liabilities assumed from True North have been recorded at their preliminary fair value as of June 28, 2017, the date of acquisition. The company’s unaudited condensed consolidated financial statements included the results of True North from the date of acquisition. We remeasured the fair value of the contingent consideration in the third quarter of 2017, which resulted in both changes in the fair value of the purchase price consideration and changes in the company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date . The company’s preliminary fair value of the purchase price consideration as of September 30, 2017 consisted of the following: (In millions) Estimated Fair Value Cash paid, net of cash acquired $ 395.7 Contingent consideration 189.0 Total purchase consideration $ 584.7 The company’s preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date and September 30, 2017 is outlined below. As of As of June 30, September 30, (In millions) 2017 Adjustments 2017 Current assets $ 0.6 $ — $ 0.6 Property, plant and equipment, net 0.6 — 0.6 In-process research and development (IPR&D) 590.0 — 590.0 Goodwill 164.6 6.6 171.2 Accounts payable and accrued expenses (4.0) — (4.0) Deferred tax liabilities (173.7) — (173.7) Preliminary fair value of identifiable assets acquired and liabilities assumed $ 578.1 $ 6.6 $ 584.7 The company is currently completing its evaluation of information, assumptions and valuation methodologies it used in its preliminary fair value of the purchase price consideration. The purchase price allocation is preliminary pending final determination of the fair values of certain assets and liabilities. The adjustment in the third quarter of 2017 was due to refinements of certain assumptions, based upon information available as of the acquisition date. As of September 30, 2017, certain items related to the measurement of intangible assets and current and deferred taxes have not been finalized and may be subject to change as additional information is received. The finalization of these matters and any additional information received that existed as of the acquisition date may result in changes to the underlying assets, liabilities and goodwill. These changes may be material. The final determination of these fair values will be completed as soon as possible but no later than one year from the acquisition date. Intangible Assets IPR&D intangible assets totaling $590.0 million represent the value assigned to research and development (R&D) projects acquired from True North. These IPR&D intangible assets are capitalized and accounted for as indefinite-lived intangible assets and will be subject to impairment testing until completion or abandonment of the projects. Upon successful completion of each project, the company will make a separate determination of the estimated useful life of the IPR&D intangible assets and the related amortization will be recorded as an expense over the estimated useful life. Some of the more significant assumptions inherent in the development of those asset valuations include the estimated net cash flows for each year for each asset (including net revenues, cost of sales, R&D costs, selling and marketing costs, working capital/asset contributory asset charges and other cash flow assumptions), the appropriate discount rate to select in order to measure the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, the potential regulatory and commercial success risks, competitive trends impacting the asset and each cash flow stream as well as other factors. The discount rate used to arrive at the present value at the acquisition date of the IPR&D intangible assets was 16.5% to reflect the internal rate of return and uncertainty in the cash flow projections. No assurances can be given that the underlying assumptions used to prepare the discounted cash flow analysis will not change. For these and other reasons, actual results may vary significantly from estimated results. Goodwill Goodwill, of $171.2 million as of September 30, 2017, which is not deductible for tax purposes, includes the value of net deferred tax liabilities associated with IPR&D. The table below presents a rollforward of goodwill: (In millions) Balance at June 30, 2017 $ 164.6 Measurement period adjustment 6.6 Balance at September 30, 2017 $ 171.2 Deferred tax liabilities Deferred tax liabilities includes the impact of IPR&D intangible assets which have no tax basis, partially offset by deferred tax assets associated with acquired net operating losses and research and development credits. Contingent Consideration True North equityholders are also eligible to receive additional payments of up to $425.0 million contingent on the achievement of future development, regulatory and sales milestones. As of June 30, 2017, the company estimated the preliminary fair value of the contingent consideration to be $182.4 million using a probability adjusted approach that considered the possible outcomes based on assumptions related to the timing and probability of the product launch, discount rates matched to the timing of first payment, and probability of success rates and discount adjustments on the related cash flows. In the third quarter of 2017, the company refined its estimates of the preliminary fair value of the contingent consideration and recorded adjustments to increase the contingent consideration liability to $191.3 million. Certain of the refinements related to the estimated timing of milestone achievements, which were based on information that was available as of the acquisition date. The impact of these refinements was an increase of $6.6 million, which has been recorded as an adjustment of the fair value of the contingent consideration liability and an increase in goodwill. Additional changes to assumptions used in the estimated preliminary fair value of contingent consideration were refinements based on current information as of September 30, 2017. The impact of these refinements was an increase of $2.3 million in the fair value of contingent consideration, which has been recorded as an increase in the contingent consideration liability and a research and development expense. Due to True North Equityholders In connection with the acquisition, we assumed $40.0 million of True North cash which is being held in escrow to satisfy specified indemnification obligations that arise within 18 months post closing. Any amounts remaining in escrow are payable to True North equityholders. The amounts in escrow are classified as long term restricted cash and amounts due to True North equityholders are classified as a long term liability. Integration and Acquisition Costs During the nine months ended September 30, 2017, the company expensed $9.0 million relating to the acquisition and integration of True North, which has been recorded within selling, general and administrative in the company’s unaudited condensed consolidated statements of income. Supplemental Disclosure of Pro Forma Information The following unaudited pro forma financial information presents the combined results of the operations of Bioverativ and True North as if the acquisition of True North had occurred as of January 1, 2016. The unaudited pro forma financial information is not necessarily indicative of what the consolidated results of operations actually would have been had the acquisitions been completed on January 1, 2016. In addition, the unaudited pro forma financial information does not purport to project the future results of operations of the company. For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2017 2016 2017 2016 Revenues $ 291.6 $ 229.2 $ 839.9 $ 631.2 Net income 67.8 74.6 199.8 185.6 Per share amounts: Net income per share - basic 0.63 0.69 1.85 1.72 Net income per share - diluted 0.62 0.69 1.84 1.72 The unaudited pro forma financial information above reflects a pro forma adjustment for the three and nine months ended September 30, 2017 of $0 and $11.6 million, respectively, related to integration and acquisition costs, net of tax incurred by Bioverativ and True North, including costs incurred by True North associated with its preparation for an initial public offering.

Collaborations

Collaborations	9 Months Ended
	Sep. 30, 2017
Collaborations
Collaborations	3. Collaborations In connection with the company’s business strategy, the company has entered into various collaboration agreements which provide the company with rights to develop, produce and market products using certain know‑how, technology and patent rights maintained by the company’s collaborative partners. Terms of the various collaboration agreements may require the company to make milestone payments upon the achievement of certain product research and development objectives and pay royalties on future sales, if any, of commercial products resulting from the collaboration. Swedish Orphan Biovitrum AB (publ) In January 2007, Biogen acquired 100% of the stock of Syntonix Pharmaceuticals (Syntonix). Syntonix, now known as Bioverativ Therapeutics Inc. (formerly Biogen Hemophilia Inc.), had previously entered into a development and commercialization agreement with Sobi to jointly develop and commercialize Factor VIII and Factor IX hemophilia products, including ELOCTATE and ALPROLIX. Under the development and commercialization agreement, as has been amended and restated, Bioverativ has commercial rights for North America (the Bioverativ North America Territory) and for all other markets outside of the Sobi territory (the Bioverativ Direct Territory), which consists of Europe, Russia and certain countries in Northern Africa and the Middle East (the Sobi Territory). Under the development and commercialization agreement, prior to May 5, 2024, either Bioverativ or Sobi may present a compound construct as a potential product candidate that the parties may consider developing and commercializing under the collaboration. Upon Sobi's election to treat a compound construct as a product, and in the case of a novel compound construct upon Sobi's payment of an upfront fee, Sobi is granted the right to opt-in to such compound construct and become responsible for final development and commercialization of that compound construct in Sobi's commercialization territory. Generally, upon opt-in, Sobi becomes obligated to make an advance payment and reimburse Bioverativ for certain development expenses incurred with respect to the compound construct. Until Sobi's portion of the development expenses are fully paid, Sobi's royalty rate payable to Bioverativ is increased, and the royalty payment payable by Bioverativ to Sobi for the sale of products in Bioverativ's territory is decreased. In November 2014, Sobi exercised its option under the agreement to assume final development and commercialization activities in the Sobi Territory for ELOCTA (the trade name for ELOCTATE in the European Union). In July 2015, Sobi exercised its option under the agreement to assume final development and commercialization of ALPROLIX within the Sobi Territory. Upon each exercise of opt‑in right under the terms of the development and commercialization agreement, Sobi made a $10.0 million payment. Upon European Medicines Agency (EMA) regulatory approval of each of ELOCTA and ALPROLIX, Sobi was obligated to reimburse Bioverativ 50% of all shared manufacturing and development expenses incurred by Bioverativ from October 1, 2009 through the earlier of the date on which Sobi is registered as the marketing authorization holder for the applicable product or 90 days post‑regulatory approval, as well as 100% of certain development expenses incurred exclusively for the benefit of the Sobi Territory (the Opt‑In Consideration). ELOCTA was approved by the European Commission (EC) in November 2015. The Opt‑In Consideration and aggregate amount reimbursable by Sobi for ELOCTA was $211.0 million. As of September 30, 2017, approximately $104 million remained reimbursable by Sobi. ALPROLIX was approved by the EC in February 2016. The Opt‑In Consideration and aggregate amount reimbursable by Sobi for ALPROLIX was $184.7 million. As of September 30, 2017, approximately $103 million remained reimbursable by Sobi. The Opt‑In Consideration for each product is being paid by Sobi using a cross‑royalty cash payment structure for sales in each company’s respective territories. If the reimbursement of the Opt‑in Consideration for a product has not been achieved within six years of the first commercial sale of such product (the Reimbursement Period), the company maintains the right to require Sobi to pay any remaining balances due to us within 90 days of the six-year anniversary date of the first commercial sales. After Sobi’s Opt‑In Consideration has been repaid, the royalty paid and received by the company resets to the contractual royalty rate of 12%. Upon Sobi’s first commercial sale in 2016, and during the Reimbursement Period, the royalty rate the company will pay Sobi on sales of ELOCTATE and ALPROLIX in the Bioverativ North American Territory is 7% and Bioverativ Direct Territory is 12%. After the Reimbursement Period concludes, the royalty rate we pay to Sobi increases by 5%. For the three and nine months ended September 30, 2017, we are recording cost of sales at the effective royalty rate of approximately 11%. For the three months and nine months ended September 30, 2016, the effective royalty rate was approximately 11% and 9%, respectively. The company is accounting for the development and commercialization agreement under a right to use model and is recognizing revenue over the term of the commercialization period. The royalty rate received by the company, during the Reimbursement Period on sales of ELOCTATE and ALPROLIX in Sobi’s territory is 17%. After the Reimbursement Period concludes, the royalty we receive decreases to 12%. We are recording revenue at the effective royalty rate of approximately 14%. In September 2014, Sobi elected to treat BIVV001 (rFVIIIFc‑VWF‑XTEN), a compound construct developed using the XTEN technology licensed by Bioverativ from Amunix, as subject to the collaboration. In February 2017, Sobi elected to treat BIVV002 (rFIXFc-XTEN), a preclinical compound construct developed using the XTEN technology licensed by Bioverativ from Amunix, as subject to the collaboration. In consideration for its election, Sobi paid $6.2 million, which has been included as a component of research and development expense. If Sobi exercises its opt-in right for BIVV001 or BIVV002, as the case may be, it will become responsible for final development and commercialization of the applicable product in the Sobi Territory. Further, in general upon opt-in, Sobi will be obligated to reimburse Bioverativ 50% of all shared manufacturing and development expenses incurred by Bioverativ from the period of opt-in through the earlier of the date on which Sobi is registered as the marketing authorization holder for the applicable product or 90 days post‑regulatory approval, as well as 100% of certain development expenses incurred exclusively for the benefit of the Sobi Territory.

Debt and Credit Agreements

Debt and Credit Agreements	9 Months Ended
	Sep. 30, 2017
Debt and Credit Agreements
Debt and Credit Agreements	4. Debt and Credit Agreements On June 28, 2017, we entered into a $175.0 million revolving credit facility (Credit Facility), by and among the company and certain subsidiaries as borrowers, and Bank of America, N.A. and other lenders party thereto (the Lenders). On June 28, 2017, we borrowed $50.0 million to fund a portion of the purchase price of True North. The Credit Facility matures on June 28, 2020. Borrowings under the Credit Facility bear interest, at our option, at either a base rate or a Eurocurrency rate, in each case plus an applicable margin. Under the Credit Facility, the applicable margin on base rate loans ranges from 0.50% to 1.00% and the applicable margin on Eurocurrency loans ranges from 1.50% to 2.00%, in each case, based on our consolidated leverage ratio (the ratio of our total consolidated funded indebtedness to our consolidated EBITDA for the most recently completed four fiscal quarter period). Borrowings under the Credit Facility are guaranteed by certain of our domestic subsidiaries. The Credit Facility contains customary representations and warranties and affirmative and negative covenants, including financial covenants to maintain (x) a maximum consolidated leverage ratio of 3.00 to 1.00 (which ratio may, at the election of the Company, be increased to 4.00 to 1.00 upon consummation of a material acquisition, and which shall step down by 0.25x after each full fiscal quarter following such acquisition and return to 3.00 to 1.00 after four full fiscal quarters) and (y) a minimum consolidated interest coverage ratio (the ratio of our EBITDA to consolidated interest charges) of 3.00 to 1.00. As of September 30, 2017, the company was in compliance with the financial covenants under the Credit Facility. On July 28, 2017, the $50.0 million borrowing was repaid plus accrued interest. As of September 30, 2017, there were no amounts outstanding under the Credit Facility.

Financial instruments and fair

Financial instruments and fair value measurements	9 Months Ended
	Sep. 30, 2017
Financial instruments and fair value measurements
Financial instruments and fair value measurements	5. Financial instruments and fair value measurements We have certain financial assets and liabilities recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements. · Level 1 – Fair values are determined by utilizing quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; · Level 2 – Fair values are determined by utilizing quoted prices for similar assets and liabilities in active markets or other market observable inputs such as interest rates, yield curves and foreign currency spot rates; and · Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The majority of our financial assets have been classified as Level 2. Our financial assets (which include our cash equivalents, plan assets for deferred compensation and derivative contracts) have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing market observable data. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. For contingent consideration obligations, t he fair value measurements are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the applicable acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period. The table below presents information about our assets that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value: As of September 30, 2017 (In millions) Total Quoted Prices Significant Other Significant Assets Cash equivalents $ 195.8 $ — $ 195.8 $ — Plan assets for deferred compensation 17.6 — 17.6 — Derivative contracts 2.6 — 2.6 — Total $ 216.0 $ — $ 216.0 $ — Liabilities Contingent consideration obligations $ 191.3 $ — $ — $ 191.3 Total $ 191.3 $ — $ — $ 191.3 As of September 30, 2017, cash equivalents were comprised of money market funds with maturities less than 90 days from the date of purchase. As of September 30, 2017, the notional amount of outstanding undesignated foreign currency derivative instruments was $108.1 million and the fair value of $2.6 million was a component of other current assets. For the three and nine months ended September 30, 2017, f oreign currency derivative gains were $0.7 million and $2.2 million, respectively, and were a component of other income (expense). There were no hedge gains or losses in any other period presented. There have been no material impairments of our assets measured and carried at fair value during the three and nine months ended September 30, 2017. In addition, there were no changes in valuation techniques or inputs utilized or transfers between fair value measurement levels during the three and nine months ended September 30, 2017. The table below presents a rollforward of contingent consideration obligations: (In millions) Balance at June 30, 2017 $ 182.4 Measurement period adjustment 6.6 Research and development expenses recognized due to change in fair value 2.3 Balance at September 30, 2017 $ 191.3

Reserves for Discounts and Allo

Reserves for Discounts and Allowances	9 Months Ended
	Sep. 30, 2017
Reserves for Discounts and Allowances
Reserves for Discounts and Allowances	6. Reserves for Discounts and Allowances Following the company’s product launches, the company began recognizing reserves for discounts and allowances related to product revenue. An analysis of the change in reserves is summarized as follows: Contractual (In millions) Discounts Adjustments Returns Total Balance at December 31, 2016 $ 6.0 $ 26.5 $ 0.3 $ 32.8 Provision related to current period sales 126.1 221.9 0.4 348.4 Adjustment related to prior period sales (1.3) 0.7 0.7 0.1 Credits/payments made (125.7) (208.1) (0.2) (334.0) Balance at September 30, 2017 $ 5.1 $ 41.0 $ 1.2 $ 47.3 As of As of September 30, December 31, (In millions) 2017 2016 Reduction of accounts receivable $ 10.3 $ 11.1 Current liability 37.0 21.7 Total reserves $ 47.3 $ 32.8

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory
Inventory	7. Inventory The components of inventory are summarized as follows: As of As of September 30, December 31, (In millions) 2017 2016 Raw materials $ 0.6 $ 42.9 Work in process 20.5 227.2 Finished goods 9.4 31.9 Total inventory $ 30.5 $ 302.0 Inventory and inventoriable costs written down as a result of lot failures, excess, obsolescence, unmarketability or other reasons are charged to cost of sales. There were $0.7 million and $6.3 million of write-offs in the three months ended September 30, 2017 and 2016, respectively. There were $8.9 million and $9.9 million of write-offs in the nine months ended September 30, 2017 and 2016, respectively. Inventory consists of amounts contributed as part of the separation. Since the separation, we have drawn down contributed inventory. In connection with the separation, certain raw material and work in process inventory totaling $179.0 million was retained by Biogen. This inventory is subject to the terms and conditions of our manufacturing and supply agreement with Biogen. In the fourth quarter of 2017, we commenced purchasing inventory from Biogen pursuant to a manufacturing and supply agreement.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2017
Intangible Assets
Intangible Assets	8 . Intangible Assets Our intangible assets consist of developed technology milestones and IPR&D. Developed technology primarily relates to approval milestones for ALPROLIX paid to the former Syntonix shareholders in 2014 and 2016. IPR&D consists of assets acquired as a result of our acquisition of True North and primarily relates to BIVV009 (formerly TNT009), a first-in-class monoclonal antibody in development for the treatment of cold agglutinin disease (CAgD). Intangible assets, net of accumulated amortization are summarized as follows: As of As of September 30, 2017 December 31, 2016 Estimated Accumulated Accumulated (In millions except for estimated life) Life Cost Amortization Net Cost Amortization Net Developed technology 11 years $ 61.7 $ (14.3) $ 47.4 $ 61.7 $ (10.0) $ 51.7 IPR&D Indefinite 590.0 590.0 — — — Total $ 651.7 $ (14.3) $ 637.4 $ 61.7 $ (10.0) $ 51.7 During the three and nine months ended September 30, 2017 amortization expense associated with developed technology assets was $1 .4 million and $4.3 million, respectively, as compared to $1.4 million and $3.4 million, respectively, in the prior year comparative periods.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment
Property, Plant and Equipment	9. Property, Plant and Equipment Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. Components of property, plant and equipment, net are summarized as follows: As of As of September 30, December 31, (In millions) 2017 2016 Buildings $ — $ 8.0 Leasehold improvements 8.7 — Machinery and equipment 30.3 21.0 Computer software and hardware 6.2 5.9 Furniture and fixtures 0.9 0.5 Construction in progress 1.0 6.9 Total cost 47.1 42.3 Less: accumulated depreciation 22.8 13.9 Total property, plant and equipment, net $ 24.3 $ 28.4 In connection with the separation, certain property, plant and equipment, mainly buildings and associated accumulated depreciation totaling $9.8 million was retained by Biogen.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	10. Income Taxes Prior to the separation, the company’s income tax expense and deferred tax balances were calculated on a separate tax return basis although the company’s operations had historically been included in the tax returns filed by the respective Biogen entities, of which the company’s business was a part. For periods subsequent to the separation, Bioverativ files tax returns on its own behalf and its income tax expense and deferred income tax balances are recorded in accordance with the company’s standalone income tax positions. Biogen and Bioverativ entered into a tax matters agreement effective as of the date of separation. The company’s effective tax rate was 35.3% during the three months ended September 30, 2017 as compared to (1.6)% in the prior year comparative period. The company’s effective income tax rate was 35.7% during the nine months ended September 30, 2017 as compared to (1.8)% in the prior year comparative period. The company’s effective income tax rate for the three and nine months ended September 30, 2017 differs from the U.S. federal statutory rate mainly due to state and local taxes partially offset by credits and net operating losses and permanent items. The company’s effective income tax rates for the three and nine months ended September 30, 2016 differ from the U.S. federal statutory rates mainly due to the release of a previously established valuation allowance. The effective income tax rate increased during the three and nine months ended September 30, 2017 as compared to the prior year comparative periods primarily due to the release of a valuation allowance associated with deferred tax assets resulting from our net losses and business credit carryforwards in the three and nine months ended September 30, 2016. Substantially all of these assets will not be available in the future since those attributes have already been utilized in the tax returns of Biogen.

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 30, 2017
Earnings per Share
Earnings per Share	11. Earnings per Share The denominator for basic earnings per common share (EPS) is the weighted-average number of common shares outstanding during the period. The dilutive effect of outstanding stock options and time-vested restricted stock units is reflected in the denominator for diluted EPS using the treasury stock method. The numerator for both basic and diluted EPS is net income. On February 1, 2017, Biogen distributed approximately 108 million shares of Bioverativ common stock to its shareholders. The computation of basic and dilutive EPS for periods prior to the separation was calculated using the shares distributed. Basic and diluted earnings per share are calculated as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions) 2017 2016 2017 2016 Numerator: Net income $ 67.9 $ 80.5 $ 214.3 $ 210.7 Denominator: Weighted average number of common shares outstanding 108.2 108.0 108.1 108.0 Effect of dilutive securities: Stock options 0.1 — — — Time-vested restricted stock units 0.3 — 0.3 — Dilutive potential common shares 0.4 — 0.3 — Shares used in calculating diluted earnings per share 108.6 108.0 108.4 108.0 There were no anti-dilutive shares for the three months ended September 30, 2017, as compared to 2.5 million of outstanding common share equivalents for stock options and time-vested restricted stock units for the three months ended September 30, 2016. The computation of diluted earnings per share excludes 2.2 million of outstanding common share equivalents for stock options for the nine months ended September 30, 2017, as compared to 2.5 million of outstanding common share equivalents for stock options and time-vested restricted stock units for the nine months ended September 30, 2016 as the effect is anti-dilutive.

Share Based Compensation

Share Based Compensation	9 Months Ended
	Sep. 30, 2017
Share Based Compensation
Share Based Compensation	12. Share‑Based Compensation Bioverativ Share‑Based Compensation Plans In connection with the separation, we adopted our own share‑based compensation plans. Specifically, we adopted the Bioverativ Inc. 2017 Omnibus Equity Plan (the Omnibus Plan); the Bioverativ Inc. 2017 Non‑Employee Directors Equity Plan (the Directors Plan); and the Bioverativ Inc. 2017 Employee Stock Purchase Plan (ESPP). Cash-settled performance units, market stock units, performance‑vested restricted stock units and restricted stock units (RSUs) granted under Biogen 2008 Omnibus Equity Plan to Biogen employees who became employees of Bioverativ were converted into Bioverativ RSUs, and stock options held by Biogen employees who became employees of Bioverativ were converted into Bioverativ stock options, each according to the terms of an employee matters agreement entered into between Biogen and Bioverativ in connection with the separation (converted awards). Converted awards, as well as future awards issued to Bioverativ officers, directors and employees, will be awarded under, and subject to the terms of, the Omnibus Plan, the Directors Plan and the ESPP, as the case may be. The following table provides share-based compensation expense by statement of income line item for the three and nine months ended September 30, 2017 and 2016: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions) 2017 2016 2017 2016 Cost of sales $ — $ 3.0 $ — $ 5.9 Research and development 1.5 0.8 3.7 2.3 Selling, general and administrative 7.7 1.2 23.3 3.1 Total share-based compensation expense $ 9.2 $ 5.0 $ 27.0 $ 11.3 During the three months ended September 30, 2017 and subsequent to the separation, Bioverativ awarded share-based compensation grants consisting in the aggregate of 0.1 million stock options and RSUs, with respect to the company’s employees. During the nine months ended September 30, 2017 and subsequent to the separation, Bioverativ awarded share-based compensation grants consisting of 2.2 million stock options and 0.4 million RSUs, with respect to the company’s employees. Stock Options Post-Separation The weighted-average Black-Scholes assumptions used in estimating the fair value of stock options granted by Bioverativ following the separation during the nine months ended September 30, 2017, along with the weighted-average grant-date fair values, were as follows: For the Nine Months Ended September 30, 2017 Expected volatility 40.0% Range of expected life (in years) 4 ̶ 5 Range of risk-free interest rate 1.72% ̶ 1.99% Dividend yield ̶ Range of fair value per stock option $16.78 ̶ $23.38 Expected volatility was determined using an average of peer companies’ expected volatility. As of September 30, 2017, the unrecognized compensation cost related to all unvested stock options held by Bioverativ’s employees of $23.4 million is expected to be recognized as expense over a weighted-average period of 2. 4 years. RSUs As of September 30, 2017, the unrecognized compensation cost related to all unvested RSUs held by Bioverativ employees of $16.7 million is expected to be recognized as expense over a weighted-average period of 1.6 y ears.

Related Parties

Related Parties	9 Months Ended
	Sep. 30, 2017
Related Parties
Related Parties	13. Related Parties Under the terms of the transition services agreement entered into with Biogen in connection with the separation, Biogen provides various services on an interim, transitional basis. The services provided by Biogen to Bioverativ consist of certain information technology, quality, regulatory, research and supply chain. These services are generally provided on a cost-plus basis. The services generally extend for approximately 9 months to 2 years following the separation. For the company’s operations in the United States and Canada transfer of marketing authorizations and other regulatory requirements did not occur by the separation date of February 1, 2017. As a result, the company entered into a commercial operations agreement with Biogen for the United States and Canada. Under the terms of the commercial operations agreements, until the Company has obtained the various required authorizations, Biogen agreed to perform certain services related to the distribution of finished goods to the company’s customers. The company is responsible for the business activities conducted by Biogen on its behalf, and is subject to the risks and entitled to the benefits generated by these operations and assets. As a result, the related assets and liabilities and results of operations have been reported in the company’s unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2017. Net sales related to these operations totaled $224.9 million and $668.8 million, respectively, during the three and nine months ended September 30, 2017. At September 30, 2017, the assets and liabilities consisted of certain work in process and finished goods inventories which are reported in inventories on the condensed consolidated balance sheet, and accounts receivable, which is reported as due from Biogen, on the condensed consolidated balance sheet. In May 2017, the Canadian marketing authorizations transferred to Bioverativ and in September 2017, the U.S. marketing authorizations transferred to Bioverativ. In July 2017 and October 2017, the commercial operations agreements in Canada and the United States, respectively, were completed. The company and Biogen also entered into a manufacturing and supply agreement whereby Biogen continues to produce ELOCTATE and ALPROLIX for us on a cost‑plus basis. As products were historically transferred at cost between Biogen and Bioverativ, these manufacturing and supply arrangements will result in changes to cost of goods sold in future periods. The company and Biogen also entered into a separation and distribution agreement, tax matters agreement, an employee matters agreement. The following is a summary of the amounts in the unaudited condensed consolidated balance sheets due to or from Biogen, including the assets and liabilities of certain of the company’s operations that have not yet transferred to Bioverativ and are held by Biogen as of the balance sheet dates: As of As of September 30, December 31, (In millions) 2017 2016 Receivables to be transferred to Bioverativ, held by Biogen $ 33.1 ** Amounts due to Biogen associated with transition service agreements (32.0) ** Net $ 1.1 ** ** Amount not applicable. Corporate Overhead and Other Allocations from Biogen Prior to the separation, the company did not historically operate as a standalone business and had various relationships with Biogen whereby Biogen provided services to the company. These unaudited condensed consolidated financial statements include an allocation from Biogen to us for certain research and development and selling, general and administrative costs not directly attributable to the hemophilia business of Biogen. For more information, see Note 1, Nature of Business and Basis of Presentation. For the nine months ended September 30, 2017, the allocations are for the period from January 1, 2017 through the separation date. These allocations were reflected as follows in the unaudited condensed consolidated financial statements: For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions) 2017 2016 2017 2016 Research and development allocations $ — $ 17.0 $ 6.5 $ 58.7 Selling, general and administrative allocations — 14.8 5.1 47.2 Other (income) expense, net allocations — 0.1 0.2 1.2 Total corporate overhead and other allocations from Biogen $ — $ 31.9 $ 11.8 $ 107.1

Other Consolidated Financial St

Other Consolidated Financial Statement Detail	9 Months Ended
	Sep. 30, 2017
Other Consolidated Financial Statement Detail
Other Consolidated Financial Statement Detail	14. Other Consolidated Financial Statement Detail Accrued Expenses and Other Current Liabilities Accrued expenses and other consists of the following: As of As of September 30, December 31, (In millions) 2017 2016 Revenue-related rebates $ 37.0 $ 21.7 Employee compensation and benefits 29.9 15.9 Deferred compensation liabilities 18.0 — Research and development expenses 10.7 5.5 Royalty and collaboration expenses 28.4 26.6 Short-term portion of contingent consideration 48.7 — Taxes payable 31.3 10.8 Other 25.6 8.8 Total accrued expenses and other current liabilities $ 229.6 $ 89.3 Other Long‑Term Liabilities Other long‑term liabilities consist of the following: As of As of September 30, December 31, (In millions) 2017 2016 Employee compensation and benefits $ 1.3 $ 18.7 Sobi payments 75.1 45.0 Other 4.7 — Total long term liabilities $ 81.1 $ 63.7

Litigation

Litigation	9 Months Ended
	Sep. 30, 2017
Litigation
Litigation	15. Litigation From time to time, we may be involved in various claims and legal proceedings. With respect to some loss contingencies, an estimate of the possible loss or range of loss cannot be made until management has further information, including, for example, (i) which claims, if any, will survive dispositive motion practice; (ii) information to be obtained through discovery; (iii) information as to the parties’ damages claims and supporting evidence; (iv) the parties’ legal theories; and (v) the parties’ settlement positions. For information as to our accounting policies relating to claims and legal proceedings, including use of estimates, and contingencies, please read Note 2, Summary of Significant Accounting Policies , of our 2016 Form 10-K. Subject to the terms of the separation agreement we entered into with Biogen, the company may be responsible for certain liabilities relating to following legal matters involving Biogen prior to the separation, solely to the extent such liabilities relate to, arise out of or result from hemophilia business. The imposition of any such liability would be carefully evaluated by the company under the terms of the separation agreement. Government Matters On March 4, 2016, Biogen received a subpoena from the federal government for documents relating to Biogen’s relationship with non‑profit organizations that provide assistance to patients taking drugs sold by Biogen. On July 1, 2016, Biogen received civil investigative demands from the federal government for documents and information relating to Biogen’s treatment of certain service agreements with wholesalers when calculating and reporting Average Manufacturer Prices in connection with the Medicaid Drug Rebate Program.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	16. Commitments and Contingencies True North Therapeutics In connection with our acquisition of True North, the True North equityholders are eligible to receive additional payments of up to $425.0 million contingent on the achievement of future development, regulatory and sales milestones. Contingent Development, Regulatory and Commercial Milestone Payments Based on our development plans primarily in gene editing and gene therapy for hemophilia and other blood disorders as of September 30, 2017, we could make potential future milestone payments to third party collaborators of up to approximately $800 million. Payments under these agreements generally become due and payable upon achievement of certain development, regulatory or commercial milestones. Because the achievement of these milestones had not occurred as of September 30, 2017, such contingencies have not been recorded in our financial statements. Amounts related to contingent milestone payments are not considered contractual obligations as they are contingent on the successful achievement of certain development, regulatory approval and commercial milestones.

Nature of Business and Basis 23

Nature of Business and Basis of Preparation (Policies)	9 Months Ended
	Sep. 30, 2017
Nature of Business and Basis of Preparation
Nature of Business	Nature of Business Bioverativ separated from Biogen on February 1, 2017 as a result of a special dividend distribution of all the outstanding shares of common stock of Bioverativ to Biogen stockholders. The distribution was made to Biogen stockholders of record as of the close of business on January 17, 2017, who received one share of Bioverativ common stock for every two shares of Biogen common stock held as of such date. As a result of the distribution, Bioverativ became an independent public company. Bioverativ holds the assets and liabilities of Biogen’s former hemophilia business. Bioverativ is focused on the discovery, research, development and commercialization of innovative therapies for the treatment of hemophilia and other rare blood disorders. Bioverativ’s marketed products include ELOCTATE and ALPROLIX, extended half‑life factors for the treatment of hemophilia A and hemophilia B, respectively. Pursuant to a development and commercialization agreement, Bioverativ collaborates with Swedish Orphan Biovitrum AB (publ) (Sobi) to jointly develop and commercialize ELOCTATE and ALPROLIX globally. Sobi has responsibility for commercialization of ELOCTATE and ALPROLIX in Europe, Russia and certain countries in Northern Africa and the Middle East, while Bioverativ retains rights to commercialize those therapies in the United States, Japan, Canada, Australia, Latin American countries and all other markets excluding Sobi’s commercialization territory. See Note 3, Collaborations , for further information on Bioverativ’s collaboration with Sobi. Bioverativ’s pipeline includes programs in hemophilia, cold agglutinin disease, sickle cell disease, beta thalassemia, and other rare blood disorders.
Basis of Presentation	Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, necessary for a fair presentation of our financial statements for interim periods in accordance with accounting principles generally accepted in the United States (U.S. GAAP). We operate as one operating segment, which is discovering, researching, developing and commercializing innovative therapies for the treatment of hemophilia and other rare blood disorders. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements and the accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (2016 Form 10-K). Our accounting policies are described in the “Notes to Consolidated Financial Statements” in our 2016 Form 10-K and updated, as necessary, in our Quarterly Reports on Form 10-Q. The December 31, 2016 condensed consolidated balance sheet data presented for comparative purposes was derived from our audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the three and nine months ended September 30, 2017, are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. The accompanying unaudited condensed consolidated financial statements reflect the consolidated financial position and consolidated results of operations of the company as an independent, publicly-traded company for the period after the February 1, 2017 separation. The unaudited condensed consolidated financial statements also reflect the consolidated financial position and consolidated results of operations of the company as a consolidated reporting entity of Biogen for periods prior to the separation. During the nine months ended September 30, 2017, the company recorded certain separation related adjustments in its condensed consolidated statement of equity. The separation related adjustments primarily related to differences between assets and liabilities transferred to Bioverativ as a result of the separation and assets and liabilities reported in the company’s consolidated balance sheet as of January 31, 2017. Separation related adjustments for the nine months ended September 30, 2017 totaled $310.3 million consisting primarily of inventory and deferred tax assets retained by Biogen upon separation. Additional separation related adjustments could be recorded in future periods. Prior to the separation, the unaudited condensed consolidated financial statements were prepared on a standalone basis and were derived from Biogen’s consolidated financial statements and accounting records as if the former hemophilia business of Biogen had been standalone business. Accordingly, financial information for periods prior to the separation is shown on a carve-out basis for the hemophilia business as part of Biogen. The unaudited condensed consolidated financial statements reflected the company’s financial position, results of operations and cash flows as the business was operated as part of Biogen prior to the distribution. Prior to the separation, the unaudited condensed consolidated financial statements included the attribution of certain assets and liabilities that were historically held at the Biogen corporate level but which were specifically identifiable or attributable to the company. All intercompany transactions and accounts within the company were eliminated. All transactions between the company and Biogen were considered to be effectively settled in the unaudited condensed consolidated financial statements at the time the transaction was recorded. The total net effect of the settlement of the transactions with Biogen is reflected in the unaudited condensed consolidated statements of cash flows in periods prior to the separation as a financing activity and in the unaudited condensed consolidated balance sheet as net parent company investment. Prior to the separation, these unaudited condensed consolidated financial statements include an allocation from Biogen to us for certain research and development and selling, general and administrative costs not directly attributable to the hemophilia business of Biogen. The research and development costs include depreciation and other facility‑based expenses, regulatory affairs function, pharmacovigilance, other infrastructure and management costs supporting multiple projects. The selling, general and administrative costs include certain services provided by Biogen, which include, but are not limited to, executive oversight, treasury, finance, legal, human resources, tax planning, internal audit, financial reporting, information technology, investor relations, shared services, insurance, employee benefits and incentives and share‑based compensation. Allocated amounts have been included in research and development, selling, general and administrative and other income and expense. These expenses have been allocated to the company based on direct usage or benefit where specifically identifiable, with the remainder allocated primarily based on hours or direct costs. The company considers the expense methodology and results to be reasonable for all periods presented. However, the allocations may not be indicative of the actual expense that would have been incurred had the company operated as an independent, publicly traded company for the periods presented. In periods prior to the separation, Bioverativ’s employees participated in various benefit and share-based compensation plans maintained by Biogen. A portion of the cost of those plans was included in the company’s financial statements. However, the unaudited condensed consolidated balance sheets in periods prior to the separation did not include any equity related to share-based compensation plans. Prior to the separation, the company’s equity balance represented the excess of total assets over total liabilities, including the due to/from balances between the company and Biogen (net parent company investment) and cumulative translation adjustment. In connection with the separation, the company’s net parent company investment balance was reclassified to additional paid-in capital.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. In first quarter of 2017, the company concluded that it was appropriate to classify costs associated with medical affairs as research and development to better align with Bioverativ’s organizational structure. Previously, such costs had been classified as selling, general and administrative. As a result, the amounts that were previously presented in selling, general and administrative were reclassified in research and development for each of the following periods in 2016. For the Three Months Ended For the Year Ended (In millions) March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 $ 7.7 $ 8.9 $ 7.7 $ 6.9 $ 31.2
Use of Estimates	Use of Estimates The preparation of our condensed consolidated financial statements requires us to make estimates, judgments, and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis we evaluate our estimates, judgments and methodologies. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. Actual results may differ from these estimates under different assumptions or conditions.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider only those investments which are highly liquid, readily convertible to cash and that mature within three months from date of purchase to be cash equivalents. The carrying values of money market funds approximate fair value due to their short-term maturities.
Goodwill	Goodwill Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. Goodwill is not amortized, but reviewed for impairment. Goodwill is reviewed annually and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. We compare the fair value of our reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of our reporting unit, then we would need to determine the implied fair value of our reporting unit’s goodwill. If the carrying value of our reporting unit’s goodwill exceeds its implied fair value, then we would record an impairment loss equal to the difference. As described above in Basis of Presentation , we operate in one operating segment which we consider our only reporting unit.
Contingent consideration	Contingent Consideration The consideration for our acquisition includes future payments that are contingent upon the occurrence of various events. We record a liability for such contingent payments at fair value on the acquisition date. We estimate the fair value of contingent consideration through valuation models that incorporate probability-adjusted assumptions related to the likelihood of achieving the milestones and making related payments. Our contingent consideration is remeasured each reporting period. Changes in the fair value of our contingent consideration are recognized in our condensed consolidated statements of income. Changes in the fair value of the contingent consideration can result from changes to one or multiple inputs, including changes to the discount rates, changes in the probability of certain clinical events, regulatory approval, and the amount or timing of development and sales based milestones. Discount rates in our valuation models represent a measure of the weighted average cost of capital of the target associated with settling the liability. The period over which we discount our contingent consideration is based on the current development stage of the product candidates and our specific development plan for that product candidate. In estimating the probability of success, we utilize data regarding similar milestone events from several sources, including industry studies and our own experience. These fair value measurements are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period.
Non-designated Foreign Currency Contracts	Non-designated Foreign Currency Contracts Currency forward contracts are used as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These currency forward contracts are not designated as cash flow, fair value or net investment hedges. The currency forward contracts are marked-to-market with changes in fair value recorded to other income (expense) and are entered into for periods consistent with currency transaction exposures, generally less than one year.
New Accounting Pronouncements	New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that we adopt as of the specified effective date. The following new standards issued by FASB were adopted by the company on January 1, 2017: · Accounting Standards Update (ASU) No. 2015‑11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The new standard applies only to inventory for which cost is determined by methods other than last-in, first-out and the retail inventory method, which includes inventory that is measured using first in, first out (FIFO) or average cost. Inventory within the scope of this standard is required to be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The adoption of this standard did not have a material impact on our financial position, results of operations or statements of cash flows upon adoption. · ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The new standard requires that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The adoption of this standard did not have a material impact on our financial position, results of operations or statements of cash flows upon adoption. · ASU No. 2016‑09, Compensation‑Stock Compensation (Topic 718): Improvements to Employee Share‑Based Payment Accounting. The new standard requires recognition of the income tax effects of vested or settled awards in the income statement and involves several other aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The adoption of this standard did not have a material impact on our financial position, results of operations or statements of cash flows upon adoption. The following new standards have been issued by FASB but are not yet effective. In May 2014 the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has subsequently issued amendments to ASU No. 2014-09 that have the same effective date and transition date of January 1, 2018. We expect to adopt these standards using the full retrospective method. Our assessment of the potential impact that this standard may have on our financial position, results of operations and disclosures will be completed in the fourth quarter of 2017. In January 2016 the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard amends certain aspects of accounting and disclosure requirements of financial instruments, including the requirement that equity investments with readily determinable fair values be measured at fair value with changes in fair value recognized in a company's results of operations. The new standard will be effective for us on January 1, 2018. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position or results of operations. In February 2016 the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard requires that all lessees recognize the assets and liabilities that arise from leases on their balance sheet and disclose qualitative and quantitative information about their leasing arrangements. The new standard will be effective for us on January 1, 2019. We are currently evaluating the impact that this standard may have on our results of operations, financial position and disclosures. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our results of operations but may materially impact our net financial position. In October 2016 the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other Than Inventory. This new standard eliminates the deferral of the tax effects of intra-entity transfers of an asset other than inventory. Under the new standard, entities should recognize the income tax consequences on an intra-entity transfer of an asset other than inventory when the transfer occurs. This new standard will be effective for us on January 1, 2018 and will be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position. In January 2017 the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. This new standard clarifies the definition of a business and provides a screen to determine when an integrated set of assets and activities is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set of assets and activities is not a business. This new standard will be effective for us on January 1, 2018, however early adoption is permitted. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position. In January 2017 the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test of Goodwill Impairment. This new standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. This new standard will be effective for us on January 1, 2020; however, early adoption is permitted. The adoption of this standard is not expected to have a material impact on our financial position or results of operations. In May 2017 the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. This new standard provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. This new standard will be effective for us on January 1, 2018, however early adoption is permitted. As of September 30, 2017, the adoption of this standard is not expected to have a material impact on our financial position or results of operations.

Nature of Business and Basis 24

Nature of Business and Basis of Preparation (Tables)	9 Months Ended
	Sep. 30, 2017
Nature of Business and Basis of Preparation
Schedule of reclassification	For the Three Months Ended For the Year Ended (In millions) March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 December 31, 2016 $ 7.7 $ 8.9 $ 7.7 $ 6.9 $ 31.2

Acquisition of True North The25

Acquisition of True North Therapeutics, Inc. (Tables)	9 Months Ended
	Sep. 30, 2017
Acquisition of True North Therapeutics, Inc.
Schedule of purchase price consideration	(In millions) Estimated Fair Value Cash paid, net of cash acquired $ 395.7 Contingent consideration 189.0 Total purchase consideration $ 584.7
Schedule of purchase price allocation	As of As of June 30, September 30, (In millions) 2017 Adjustments 2017 Current assets $ 0.6 $ — $ 0.6 Property, plant and equipment, net 0.6 — 0.6 In-process research and development (IPR&D) 590.0 — 590.0 Goodwill 164.6 6.6 171.2 Accounts payable and accrued expenses (4.0) — (4.0) Deferred tax liabilities (173.7) — (173.7) Preliminary fair value of identifiable assets acquired and liabilities assumed $ 578.1 $ 6.6 $ 584.7
Schedule of goodwill	(In millions) Balance at June 30, 2017 $ 164.6 Measurement period adjustment 6.6 Balance at September 30, 2017 $ 171.2
Schedule of pro forma information	For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions, except per share amounts) 2017 2016 2017 2016 Revenues $ 291.6 $ 229.2 $ 839.9 $ 631.2 Net income 67.8 74.6 199.8 185.6 Per share amounts: Net income per share - basic 0.63 0.69 1.85 1.72 Net income per share - diluted 0.62 0.69 1.84 1.72

Financial instruments and fai26

Financial instruments and fair value measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Financial instruments and fair value measurements
Schedule of fair value of assets and liabilities	As of September 30, 2017 (In millions) Total Quoted Prices Significant Other Significant Assets Cash equivalents $ 195.8 $ — $ 195.8 $ — Plan assets for deferred compensation 17.6 — 17.6 — Derivative contracts 2.6 — 2.6 — Total $ 216.0 $ — $ 216.0 $ — Liabilities Contingent consideration obligations $ 191.3 $ — $ — $ 191.3 Total $ 191.3 $ — $ — $ 191.3
Schedule of rollforward of contingent consideration obligations	(In millions) Balance at June 30, 2017 $ 182.4 Measurement period adjustment 6.6 Research and development expenses recognized due to change in fair value 2.3 Balance at September 30, 2017 $ 191.3

Reserves for Discounts and Al27

Reserves for Discounts and Allowances (Tables)	9 Months Ended
	Sep. 30, 2017
Reserves for Discounts and Allowances
Schedule of analysis of the change in reserves	Contractual (In millions) Discounts Adjustments Returns Total Balance at December 31, 2016 $ 6.0 $ 26.5 $ 0.3 $ 32.8 Provision related to current period sales 126.1 221.9 0.4 348.4 Adjustment related to prior period sales (1.3) 0.7 0.7 0.1 Credits/payments made (125.7) (208.1) (0.2) (334.0) Balance at September 30, 2017 $ 5.1 $ 41.0 $ 1.2 $ 47.3 As of As of September 30, December 31, (In millions) 2017 2016 Reduction of accounts receivable $ 10.3 $ 11.1 Current liability 37.0 21.7 Total reserves $ 47.3 $ 32.8

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory
Schedule of components of inventory	As of As of September 30, December 31, (In millions) 2017 2016 Raw materials $ 0.6 $ 42.9 Work in process 20.5 227.2 Finished goods 9.4 31.9 Total inventory $ 30.5 $ 302.0

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Intangible Assets
Schedule of intangible assets, net of accumulated amortization	As of As of September 30, 2017 December 31, 2016 Estimated Accumulated Accumulated (In millions except for estimated life) Life Cost Amortization Net Cost Amortization Net Developed technology 11 years $ 61.7 $ (14.3) $ 47.4 $ 61.7 $ (10.0) $ 51.7 IPR&D Indefinite 590.0 590.0 — — — Total $ 651.7 $ (14.3) $ 637.4 $ 61.7 $ (10.0) $ 51.7

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment
Schedule of components of property, plant and equipment	As of As of September 30, December 31, (In millions) 2017 2016 Buildings $ — $ 8.0 Leasehold improvements 8.7 — Machinery and equipment 30.3 21.0 Computer software and hardware 6.2 5.9 Furniture and fixtures 0.9 0.5 Construction in progress 1.0 6.9 Total cost 47.1 42.3 Less: accumulated depreciation 22.8 13.9 Total property, plant and equipment, net $ 24.3 $ 28.4

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings per Share
Schedule of basic and diluted earnings per share	For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions) 2017 2016 2017 2016 Numerator: Net income $ 67.9 $ 80.5 $ 214.3 $ 210.7 Denominator: Weighted average number of common shares outstanding 108.2 108.0 108.1 108.0 Effect of dilutive securities: Stock options 0.1 — — — Time-vested restricted stock units 0.3 — 0.3 — Dilutive potential common shares 0.4 — 0.3 — Shares used in calculating diluted earnings per share 108.6 108.0 108.4 108.0

Share Based Compensation (Table

Share Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
Share Based Compensation
Schedule of share-based compensation expense	For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions) 2017 2016 2017 2016 Cost of sales $ — $ 3.0 $ — $ 5.9 Research and development 1.5 0.8 3.7 2.3 Selling, general and administrative 7.7 1.2 23.3 3.1 Total share-based compensation expense $ 9.2 $ 5.0 $ 27.0 $ 11.3
Schedule of option valuation assumptions	For the Nine Months Ended September 30, 2017 Expected volatility 40.0% Range of expected life (in years) 4 ̶ 5 Range of risk-free interest rate 1.72% ̶ 1.99% Dividend yield ̶ Range of fair value per stock option $16.78 ̶ $23.38

Related Parties (Tables)

Related Parties (Tables)	9 Months Ended
	Sep. 30, 2017
Related Parties
Schedule of related party outstanding balances	As of As of September 30, December 31, (In millions) 2017 2016 Receivables to be transferred to Bioverativ, held by Biogen $ 33.1 ** Amounts due to Biogen associated with transition service agreements (32.0) ** Net $ 1.1 ** ** Amount not applicable.
Schedule of corporate overhead and other allocations from Biogen	For the Three Months Ended For the Nine Months Ended September 30, September 30, (In millions) 2017 2016 2017 2016 Research and development allocations $ — $ 17.0 $ 6.5 $ 58.7 Selling, general and administrative allocations — 14.8 5.1 47.2 Other (income) expense, net allocations — 0.1 0.2 1.2 Total corporate overhead and other allocations from Biogen $ — $ 31.9 $ 11.8 $ 107.1

Other Consolidated Financial 34

Other Consolidated Financial Statement Detail (Tables)	9 Months Ended
	Sep. 30, 2017
Other Consolidated Financial Statement Detail
Schedule of accrued expenses and other	As of As of September 30, December 31, (In millions) 2017 2016 Revenue-related rebates $ 37.0 $ 21.7 Employee compensation and benefits 29.9 15.9 Deferred compensation liabilities 18.0 — Research and development expenses 10.7 5.5 Royalty and collaboration expenses 28.4 26.6 Short-term portion of contingent consideration 48.7 — Taxes payable 31.3 10.8 Other 25.6 8.8 Total accrued expenses and other current liabilities $ 229.6 $ 89.3
Long-Term Liabilities	As of As of September 30, December 31, (In millions) 2017 2016 Employee compensation and benefits $ 1.3 $ 18.7 Sobi payments 75.1 45.0 Other 4.7 — Total long term liabilities $ 81.1 $ 63.7

Nature of Business and Basis 35

Nature of Business and Basis of Preparation (Details) $ in Millions	Feb. 01, 2017	Sep. 30, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Number of shares issued in exchange of Biogen common stock held	1
Number of operating segments | segment							1
Separation-related adjustments							$ 310.3
Research and development		$ 70.1		$ 42.7			$ 140.7	$ 146.9
Biogen
Number of shares issued in exchange of Biogen common stock held	2
Reclassification
Research and development			$ 6.9	$ 7.7	$ 8.9	$ 7.7			$ 31.2

Acquisition of True North The36

Acquisition of True North Therapeutics, Inc. (Details) - USD ($) $ in Millions	Jun. 28, 2017	Sep. 30, 2017	Jun. 30, 2017
Business combinations
Potential future milestone payments		$ 800
Purchase price consideration
Cash paid, net of cash acquired		395.7
Purchase price allocation
Goodwill		171.2
True North
Business combinations
Consideration paid, plus assumed cash	$ 395.7
Potential future milestone payments	425
Purchase price consideration
Cash paid, net of cash acquired	395.7
Contingent consideration	189
Total purchase consideration	$ 584.7
Purchase price allocation
Current assets		0.6
Property, plant and equipment, net		0.6
In-process research and development (IPR&D)		590
Goodwill		171.2	$ 164.6
Accounts payable and accrued expenses		(4)
Deferred tax liabilities		(173.7)
Preliminary fair value of identifiable assets acquired and liabilities assumed		584.7
Discount rate (as a percent)	16.50%
Previously reported | True North
Purchase price allocation
Current assets			0.6
Property, plant and equipment, net			0.6
In-process research and development (IPR&D)			590
Goodwill			164.6
Accounts payable and accrued expenses			(4)
Deferred tax liabilities			(173.7)
Preliminary fair value of identifiable assets acquired and liabilities assumed			$ 578.1
Adjustments | True North
Purchase price allocation
Goodwill		6.6
Preliminary fair value of identifiable assets acquired and liabilities assumed		$ 6.6

Acquisition of True North The37

Acquisition of True North Therapeutics, Inc. (Goodwill and Contingency) (Details) - USD ($) $ in Millions	Jun. 28, 2017	Sep. 30, 2017	Sep. 30, 2017	Jun. 30, 2017
Goodwill
Measurement period adjustment		$ 6.6
Goodwill, ending balance		171.2	$ 171.2
Contingent consideration fair value		191.3	191.3	$ 182.4
Remeasurement of contingent consideration		2.3	2.3
True North
Goodwill
Goodwill, beginning balance		164.6
Measurement period adjustment		6.6
Goodwill, ending balance		171.2	171.2
Contingent consideration fair value	$ 182.4	191.3	191.3
Remeasurement of contingent consideration		$ 2.3
Amount held in escrow	$ 40
Indemnification obligation period	18 months
Acquisition and integration costs			$ 9

Acquisition of True North The38

Acquisition of True North Therapeutics, Inc. (Proforma) (Details) - True North - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pro forma information
Revenue	$ 291,600,000	$ 229,200,000	$ 839,900,000	$ 631,200,000
Net (loss)/income	$ 67,800,000	$ 74,600,000	$ 199,800,000	$ 185,600,000
Net (loss)/income per share - basic (in dollars per share)	$ 0.63	$ 0.69	$ 1.85	$ 1.72
Net (loss)/income per share - diluted (in dollars per share)	$ 0.62	$ 0.69	$ 1.84	$ 1.72
Acquisition and integration costs			$ 9,000,000
Integration and acquisition cost adjustment
Pro forma information
Acquisition and integration costs	$ 0		$ 11,600,000

Collaborations (Details)

Collaborations (Details) - USD ($) $ in Millions	1 Months Ended			3 Months Ended		9 Months Ended
	Feb. 28, 2017	Jul. 31, 2015	Nov. 30, 2014	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Feb. 29, 2016	Nov. 30, 2015	Jan. 31, 2007
Collaborations
Accounts receivable, net				$ 197.6		$ 197.6		$ 149.4
Revenue from collaborative partners				$ 16.8	$ 12.1	$ 59.1	$ 26.4
Sobi
Collaborations
Shared manufacturing and development expense reimbursement rate (as a percent)			50.00%
Post regulatory approval period			90 days
Exclusive development expense reimbursement rate (as a percent)			100.00%
Reimbursement Period			6 years
Period all reimbursement must be paid after Reimbursement Period			90 days
Royalty payable and receivable (as a percent)			12.00%
Royalty payable increase after Reimbursement Period (as a percent)			5.00%
Cost of sales effective royalty (as a percent)				11.00%		11.00%
Royalty based on sales (as a percent)					11.00%		9.00%
Royalty receivable during Reimbursement Period (as a percent)			17.00%
Revenue effective royalty (as a percent)			14.00%
Bioverativ North American Territory | Sobi
Collaborations
Royalty payable during Reimbursement Period (as a percent)			7.00%
Bioverativ Direct Territory | Sobi
Collaborations
Royalty payable during Reimbursement Period (as a percent)			12.00%
ALPROLIX | Sobi
Collaborations
Proceeds from agreement		$ 10
Aggregate amount reimbursable									$ 184.7
Accounts receivable, net				$ 103		$ 103
ELOCTA | Sobi
Collaborations
Proceeds from agreement			$ 10
Aggregate amount reimbursable										$ 211
Accounts receivable, net				$ 104		$ 104
BIVV002 | Sobi
Collaborations
Revenue from collaborative partners	$ 6.2
Biogen | Syntonix
Collaborations
Ownership acquired (as a percent)											100.00%

Debt and Credit Agreements (Det

Debt and Credit Agreements (Details) $ in Millions	Jul. 28, 2017USD ($)	Jun. 28, 2017USD ($)	Sep. 30, 2017USD ($)
Debt and credit agreements
Borrowings outstanding			$ 0
Credit Facility
Debt and credit agreements
Maximum borrowing capacity		$ 175
Leverage ratio		3
Leverage ratio upon consummation of a material acquisition		4
Leverage ratio step down after each full fiscal quarter		0.25
Interest coverage ratio		3
Repayment of borrowing plus accrued interest	$ 50
Minimum | Credit Facility | Base rate
Debt and credit agreements
Variable interest margin (as a percent)		0.50%
Minimum | Credit Facility | Eurocurrency rate
Debt and credit agreements
Variable interest margin (as a percent)		1.50%
Maximum | Credit Facility | Base rate
Debt and credit agreements
Variable interest margin (as a percent)		1.00%
Maximum | Credit Facility | Eurocurrency rate
Debt and credit agreements
Variable interest margin (as a percent)		2.00%
True North | Credit Facility
Debt and credit agreements
Borrowings outstanding		$ 50

Financial instruments and fai41

Financial instruments and fair value measurements (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Liabilities
Contingent consideration obligations	$ 191,300	$ 191,300		$ 182,400
Foreign currency
Liabilities
Hedged foreign currency derivative gain (loss)			$ 0
Foreign currency | Undesignated Hedge
Liabilities
Notional amount	108,100	108,100
Foreign currency | Undesignated Hedge | Other income (expense)
Liabilities
Undesignated foreign currency derivative gains	700	2,200
Foreign currency | Undesignated Hedge | Other current assets
Assets
Derivative contract	2,600	2,600
Recurring
Assets
Cash equivalents	195,800	195,800
Plan assets for deferred compensation	17,600	17,600
Derivative contract	2,600	2,600
Total	216,000	216,000
Liabilities
Contingent consideration obligations	191,300	191,300
Total	191,300	191,300
Level 2 | Recurring
Assets
Cash equivalents	195,800	195,800
Plan assets for deferred compensation	17,600	17,600
Derivative contract	2,600	2,600
Total	216,000	216,000
Level 3 | Recurring
Liabilities
Contingent consideration obligations	191,300	191,300
Total	$ 191,300	$ 191,300

Financial instruments and fai42

Financial instruments and fair value measurements (Contingent Consideration) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Financial instruments and fair value measurements
Balance, beginning	$ 182.4
Measurement period adjustment	6.6
Research and development expenses recognized due to change in fair value	2.3	$ 2.3
Balance, ending	$ 191.3	$ 191.3

Reserves for Discounts and Al43

Reserves for Discounts and Allowances (Details) $ in Millions	9 Months Ended
	Sep. 30, 2017USD ($)
Reserve rollforward
Balance at beginning of period	$ 32.8
Provision related to current period sales	348.4
Adjustment related to prior period sales	0.1
Credits/payments made	(334)
Balance at end of period	47.3
Discounts
Reserve rollforward
Balance at beginning of period	6
Provision related to current period sales	126.1
Adjustment related to prior period sales	(1.3)
Credits/payments made	(125.7)
Balance at end of period	5.1
Contractual Adjustments
Reserve rollforward
Balance at beginning of period	26.5
Provision related to current period sales	221.9
Adjustment related to prior period sales	0.7
Credits/payments made	(208.1)
Balance at end of period	41
Returns
Reserve rollforward
Balance at beginning of period	0.3
Provision related to current period sales	0.4
Adjustment related to prior period sales	0.7
Credits/payments made	(0.2)
Balance at end of period	$ 1.2

Reserves for Discounts and Al44

Reserves for Discounts and Allowances (Summary) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Reserves for Discounts and Allowances
Reduction of accounts receivable	$ 10.3	$ 11.1
Current liability	37	21.7
Total reserves	$ 47.3	$ 32.8

Inventory (Details)

Inventory (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Raw materials	$ 0.6		$ 0.6		$ 42.9
Work in process	20.5		20.5		227.2
Finished goods	9.4		9.4		31.9
Total inventory	30.5		30.5		$ 302
Inventory written down	0.7	$ 6.3	8.9	$ 9.9
Biogen
Inventory retained by Biogen	$ 179		$ 179

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Intangible assets
Finite-lived intangible assets, amortization	$ (14.3)		$ (14.3)		$ (10)
Intangible assets, cost	651.7		651.7		61.7
Intangible assets, net	637.4		637.4		51.7
Amortization expense associated with acquired intangible assets	1.4	$ 1.4	4.3	$ 3.4
In-process research and development (IPR&D)
Intangible assets
Indefinite-lived intangible assets	590		$ 590
Developed technology
Intangible assets
Estimated Life			11 years
Finite-lived intangible assets, cost	61.7		$ 61.7		61.7
Finite-lived intangible assets, amortization	(14.3)		(14.3)		(10)
Finite-lived intangible assets, net	$ 47.4		$ 47.4		$ 51.7

Property, Plant and Equipment47

Property, Plant and Equipment (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Property, plant and equipment
Total cost	$ 47.1	$ 42.3
Less: accumulated depreciation	22.8	13.9
Total property, plant and equipment, net	24.3	28.4
Buildings
Property, plant and equipment
Total cost		8
Leasehold improvements
Property, plant and equipment
Total cost	8.7
Machinery and equipment
Property, plant and equipment
Total cost	30.3	21
Computer software and hardware
Property, plant and equipment
Total cost	6.2	5.9
Furniture and fixtures
Property, plant and equipment
Total cost	0.9	0.5
Construction in progress
Property, plant and equipment
Total cost	1	$ 6.9
Biogen
Property, plant and equipment
Property, plant and equipment retained by Biogen	$ 9.8

Income Taxes (Detail)

Income Taxes (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Expense Reconciliation
Effective tax rate (as a percent)	35.30%	(1.60%)	35.70%	(1.80%)

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) shares in Millions, $ in Millions	Feb. 01, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net income		$ 67.9	$ 80.5	$ 214.3	$ 210.7
Denominator:
Weighted average number of common shares outstanding (in shares)		108.2	108	108.1	108
Effect of dilutive securities:
Dilutive potential common shares (in shares)		0.4		0.3
Shares used in calculating diluted earnings per share (in shares)		108.6	108	108.4	108
Shares excluded in computation of diluted EPS (in shares)		0	2.5	2.2	2.5
Biogen
Issuance of common stock upon separation (in shares)	108
Stock options
Effect of dilutive securities:
Effect of share-based awards		0.1
RSUs
Effect of dilutive securities:
Effect of share-based awards		0.3		0.3

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based compensation
Share based compensation expense	$ 9.2	$ 5	$ 27	$ 11.3
Cost of sales
Share-based compensation
Share based compensation expense		3		5.9
Research and development
Share-based compensation
Share based compensation expense	1.5	0.8	3.7	2.3
Selling, general and administrative allocations
Share-based compensation
Share based compensation expense	7.7	$ 1.2	$ 23.3	$ 3.1
Stock options
Share-based compensation
Share-based compensation grants (in shares)			2.2
Assumptions
Expected volatility (as a percent)			40.00%
Risk-free interest rate, minimum (as a percent)			1.72%
Risk-free interest rate, maximum (as a percent)			1.99%
Dividend yield (as a percent)			0.00%
Unrecognized compensation for unvested stock options	$ 23.4		$ 23.4
Recognition period for unvested awards			2 years 4 months 24 days
RSUs
Share-based compensation
Share-based compensation grants (in shares)	0.1		0.4
Assumptions
Recognition period for unvested awards			1 year 7 months 6 days
Unrecognized compensation for unvested RSUs	$ 16.7		$ 16.7
Minimum | Stock options
Assumptions
Range of expected life			4 years
Range of fair value per stock option (in dollars per share)	$ 16.78		$ 16.78
Maximum | Stock options
Assumptions
Range of expected life			5 years
Range of fair value per stock option (in dollars per share)	$ 23.38		$ 23.38

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related parties
Net sales	$ 274.8	$ 217.1	$ 780.7	$ 604.8
Receivables to be transferred to Bioverativ, held by Biogen	33.1		33.1
Amounts due to Biogen associated with transition service agreements	(32)		(32)
Biogen
Related parties
Net sales	224.9		668.8
Receivables to be transferred to Bioverativ, held by Biogen	33.1		33.1
Amounts due to Biogen associated with transition service agreements	(32)		(32)
Net	$ 1.1		1.1
Total corporate overhead and other allocations from Biogen		31.9	11.8	107.1
Research and development | Biogen
Related parties
Total corporate overhead and other allocations from Biogen		17	6.5	58.7
Selling, general and administrative allocations | Biogen
Related parties
Total corporate overhead and other allocations from Biogen		14.8	5.1	47.2
Other (income) expense, net allocations | Biogen
Related parties
Total corporate overhead and other allocations from Biogen		$ 0.1	$ 0.2	$ 1.2
Minimum | Transition Services Agreement | Biogen
Related parties
Agreement term			9 months
Maximum | Transition Services Agreement | Biogen
Related parties
Agreement term			2 years

Other Consolidated Financial 52

Other Consolidated Financial Statement Detail (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Accrued expenses and other
Revenue-related rebates	$ 37	$ 21.7
Employee compensation and benefits	29.9	15.9
Deferred compensation liabilities	18
Research and development expenses	10.7	5.5
Royalty and collaboration expenses	28.4	26.6
Short-term portion of contingent consideration	48.7
Taxes payable	31.3	10.8
Other	25.6	8.8
Total accrued expenses and other current liabilities	229.6	89.3
Other Long-Term Liabilities
Employee compensation and benefits	1.3	18.7
Sobi payments	75.1	45
Other	4.7
Total long term liabilities	$ 81.1	$ 63.7

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Sep. 30, 2017	Jun. 28, 2017
Loss Contingencies [Line Items]
Potential future milestone payments	$ 800
True North
Loss Contingencies [Line Items]
Potential future milestone payments		$ 425