United states securities and exchange commission

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Collaboration Profit (Loss) Sharing
Collaboration profit (loss) sharing includes our 
partner's 50% share of the profit or loss related to 
our biosimilars commercial agreement with Samsung 
Bioepis and our partner's 50% share of the co-
promotion profits or losses in the E.U. and Canada 
related to our collaboration agreement with AbbVie on 
the commercialization of ZINBRYTA. 
We began to recognize revenues on sales of 
biosimilars in the first quarter of 2016. For 2017 we 
shared collaboration profits and therefore recognized 
net expense of $111.0 million as compared to net 
expense of $15.1 million in the prior year comparative 
period. The increase in profit sharing expense for the 
comparative period was primarily due to increased 
collaboration profits resulting from increased 
biosimilar product sales.
We began to recognize revenues on sales of 
ZINBRYTA in the E.U. in the third quarter of 2016. For 
2017 we recognized net expense of $1.3 million to 
reflect AbbVie's 50% sharing of the net collaboration 
profits in the E.U. and Canada as compared to net 
income recognized of $4.9 million in the prior year 
comparative period, to reflect AbbVie's 50% sharing of 
the net collaboration losses in the E.U. and Canada. 
The increase in profit sharing expense for the 
comparative period was primarily due to increased 
collaboration profits resulting from increased 
ZINBRYTA product sales. 
We expect that the future sales growth of 
ZINBRYTA will be negatively impacted as a result of 
the EC approved restrictions on the use of ZINBRYTA. 
For additional information on our relationship with 
AbbVie, including information on the Article 20 
Procedure of ZINBRYTA and resulting impairment of 
ZINBRYTA related assets, please read Note 20, 
Collaborative and Other Relationships, to our 
consolidated financial statements included in this 
report.
Loss (Gain) on Fair Value Remeasurement of 
Contingent Consideration
Consideration payable for certain of our 
business combinations includes future payments that 
are contingent upon the occurrence of a particular 
event or events. We record an obligation for such 
contingent consideration payments at fair value on 
the acquisition date. We then revalue our contingent 
consideration obligations each reporting period. 
Changes in the fair value of our contingent 
consideration obligations, other than changes due to 
payments, are recognized as a (gain) loss on fair 
value remeasurement of contingent consideration in 
our consolidated statements of income.  
The loss on fair value remeasurement of 
contingent consideration for 2017 was primarily due 
to the increase in the probability of achieving certain 
developmental milestones based upon the 
progression of the underlying clinical programs.
The loss on fair value remeasurement of 
contingent consideration for 2016 was primarily due 
to changes in the probability of achieving certain 
developmental milestones based upon the 
progression of the underlying clinical programs and 
changes in the discount rate.
The loss on fair value remeasurement of 
contingent consideration for 2015 was primarily due 
to changes in the expected timing and probabilities of 
success related to the achievement of certain 
developmental milestones and in the discount rate.

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73
Restructuring, Business Transformation and Other 
Cost Saving Initiatives
2017 Corporate Strategy
In July 2017 we announced an updated strategic 
framework to optimize the value of our MS business 
while investing for the future across our core growth 
areas of MS and neuroimmunology, AD and dementia, 
Parkinson’s disease and movement disorders and 
neuromuscular diseases including SMA and ALS. We 
also plan to invest in emerging growth areas such as 
pain, ophthalmology, neuropsychiatry and acute 
neurology. 
We expect the continued performance of our 
commercial assets and the expiration of the 
contingent payments related to TECFIDERA, discussed 
further in the “Contractual Obligations and Off-Balance 
Sheet Arrangements” section of this report, to enable 
us to invest in and build an industry leading 
neuroscience pipeline. We view investment in growth 
as our top priority, but also recognize the value of 
opportunistically returning excess capital to 
shareholders through share repurchases.
In order to deliver positive results in the near 
term while investing in the next stages of our growth, 
we will focus on the following strategic priorities:
•  maximizing the resilience of our MS core 
business;
•  accelerating efforts in SMA as a significant new 
growth opportunity;
•  developing and expanding our neuroscience 
portfolio;
•  focusing our capital allocation efforts to drive 
investment for future growth; and
•  creating a leaner and simpler operating model to 
streamline our operations and reallocate 
resources towards prioritized research and 
development and commercial value creation 
opportunities.
In October 2017, in connection with creating a 
leaner and simpler operating model, we approved a 
corporate restructuring program intended to 
streamline our operations and reallocate resources. 
We expect to make total non-recurring operating and 
capital expenditures of up to $170.0 million, primarily 
in 2018, and our goal is to redirect resources of up to 
$400.0 million annually by 2020 to prioritized 
research and development and other value creation 
opportunities.
For the year ended December 31, 2017, we 
recognized charges in our consolidated statements of 
income totaling $19.4 million related to this effort, of 
which $18.5 million is included in selling, general and 
administrative expense and $0.9 million is reflected 
as restructuring charges. These restructuring charges, 
which were substantially incurred and paid in 2017, 
were primarily related to severance.
2016 Organizational Changes and Cost Saving 
Initiatives
2016 Restructuring Charges
During the third quarter of 2016 we initiated cost 
saving measures primarily intended to realign our 
organizational structure due to the changes in roles 
and workforce resulting from our decision to spin-off 
our hemophilia business, and to achieve further 
targeted cost reductions. For the year ended 
December 31, 2016, we recognized charges totaling 
$17.7 million related to this effort, which are in 
addition to, and separate from, the 2015 restructuring 
charges described below. These amounts, which were 
substantially incurred and paid by the end of 2016, 
were primarily related to severance and are reflected 
in restructuring charges in our consolidated 
statements of income.
Cambridge, MA Manufacturing Facility
In June 2016 following an evaluation of our 
current and future manufacturing capabilities and 
capacity needs, we determined that we intended to 
cease manufacturing and vacate our 67,000 square 
foot small-scale biologics manufacturing facility in 
Cambridge, MA and close and vacate our 46,000 
square foot warehouse space in Somerville, MA.
In December 2016 we subleased our rights to 
the Cambridge, MA manufacturing facility to Brammer 
Bio MA, LLC (Brammer). Brammer also purchased 
from us certain manufacturing equipment, leasehold 
improvements and other assets in exchange for 
shares of Brammer common LLC interests and 
assumed manufacturing operations effective January 
1, 2017. In December 2016 we closed and vacated 
our warehouse space in Somerville, MA.

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