Michel Vounatsos
Chief Executive Officer at Biogen
Thank you, Priya, and good morning, everyone. I'll provide some highlights of our financial performance for the third quarter and an update to our full year 2022 guidance. Please note that all financial comparisons are versus the third quarter of 2021.
Total revenue for the third quarter was $2.5 billion, a decrease of 10% at actual currency and 8% at constant currency. Non-GAAP diluted EPS in the third quarter was $4.77, which was flat versus the third quarter of 2021. Total MMS revenue, inclusive of Ocrevus royalties, was $1.6 billion, which was a decrease of 11% at actual currency and 9% at constant currency.
Global TECFIDERA revenue of $339 million decreased 32% at actual currency and 30% at constant currency. We saw continued erosion of TECFIDERA in the US due to generics and an impact from generics outside of the US, primarily in Germany. We continue to see new generic launches in the EU. Earlier this month, the Advocate General of the European Court of Justice issued a non-binding advisory opinion. We would expect TECFIDERA to have statutory market protection until at least February of 2024 if the Court adopts the advisory opinion. There is no deadline for the Court to issue its final decision, but we understand that approximately three to five months after issuance of the Advocate General's opinion is typical.
Separately, we are filing actions to enforce our recently granted European TECFIDERA dosing patent, which expires in 2028. We have been successful in obtaining preliminary injunctions in some countries and unsuccessful in others, including Germany and France. Until we either affirm TECFIDERA's entitlement to statutory market protection in the EU or successfully asserted our patent, generics can continue to sell in the countries where we do not have preliminary injunctions in place.
Global VUMERITY revenue of $138 million increased 14% at actual currency and 15% at constant currency. US VUMERITY revenue increased 6% with higher volumes, partially offset by increased discounts and allowances. VUMERITY is being impacted by both payer pressure and the contraction of the oral segment of the market in the United States.
We continue to work with our contract manufacturing supplier to address potential supply constraints for VUMERITY. We've identified the root cause, implemented manufacturing changes required to resolve the issue and are now working to secure necessary related regulatory approvals. We do not anticipate a supply shortage in 2022 and are currently focused on rebuilding adequate inventory with the goal of ensuring supply and reinitiating new country launches in 2023.
Global TYSABRI revenue of $505 million decreased 3% at actual currency and 1% at constant currency. US TYSABRI revenue was negatively impacted by higher discounts and allowances and lower volume. Outside the US, we were pleased to see continued patient growth as well as good uptake of the subcutaneous formulation in the EU, which has now been launched in over 25 markets with an average conversion rate of approximately 40%. Although the composition of matter patents for TYSABRI have expired, we have other patents related to the making and using of TYSABRI, including those listed in our 10-K. We continue to enforce this IP, including filing suit against Sandoz in the United States.
Global INTERFERON revenue of $336 million decreased 13% at actual currency and 12% at constant currency, and was impacted by the continued shift from the injectable platforms to oral or high efficacy therapies.
Moving to SMA. Global SPINRAZA revenue of $431 million declined 3% at actual currency and increased 2% at constant currency. In the United States, SPINRAZA revenue was flat versus the prior year, and we believe we may be seeing signs of stabilization in the US. Outside the US, excluding negative currency impacts, revenue increased due to volume growth in certain Asian markets as well as some positive pricing dynamics, partially offset by competition and the timing of shipments. Overall, we continue to believe that SPINRAZA has the potential to grow over time.
Moving to our biosimilars business. Revenue of $188 million declined 7% at actual currency and 4% at constant currency. We saw an increase in sales volumes, which was offset by unfavorable pricing, as well as negative currency impacts. We continue to expect a gradual launch of BYOOVIZ with more meaningful revenue contribution expected to begin in 2023. Total anti-CD20 revenue of $417 million was flat versus the prior year. Revenue from Ocrevus royalties increased 6%, which was offset by continued RITUXAN declines due to biosimilar competition.
Now moving on to expenses on the balance sheet. Third quarter non-GAAP cost of sales was $470 million, which includes $12 million of idle capacity charges. Going forward, we expect further pressure on gross margins due to shifts in product mix and potential idle capacity charges, largely resulting from the suspension of drug product manufacturing for ADUHELM.
Third quarter non-GAAP R&D expense was $549 million. This is compared to $702 million in the third quarter of 2021, which included approximately $165 million in upfront payments related to business development transactions as well as clinical trial closeout costs. Non-GAAP SG&A was $562 million. This is compared to $651 million in the third quarter of 2021. The decrease in SG&A expense was driven primarily by cost savings initiatives. Third quarter collaboration profit sharing was a net expense of $45 million, primarily driven by our collaboration with Samsung Bioepis. Non-GAAP other expense was $55 million, primarily driven by interest expense.
In the third quarter, we generated $661 million in cash flow from operations. Capital expenditures were $59 million and free cash flow was $602 million. We repurchased 1.2 million shares of the company's common stock during the quarter for $250 million at an average price of $214 per share. We ended the quarter with $5.8 billion in cash and marketable securities, $6.3 billion in debt and approximately $500 million in net debt.
Of note, in the third quarter, we received net proceeds of $583 million from the sale of one of our buildings in Cambridge as part of our office footprint optimization initiative. Additionally, in October, we paid $900 million plus fees and expenses to resolve the previously disclosed qui tam litigation. As a reminder, we expect to receive an additional $1.25 billion over the next year-and-a-half from the sale of our equity stake in Samsung Bioepis, including approximately $813 million due in April of next year.
Overall, we remain in a very strong financial position with significant cash and financial capacity, including a $1 billion undrawn revolving credit facility to invest in growing the business over the long-term.
Before I turn to our updated guidance, let me say a few words about lecanemab. We're excited to be collaborating with Eisai on this important opportunity under a global 50-50 profit sharing agreement. As a reminder, Biogen has the right to co-commercialize and co-promote lecanemab with Eisai, who has final decision making authority. After approval, our share of profits or losses will be booked as a component of other revenue. The lecanemab component of other revenue may be negative in the initial quarters of the launch. Please see Slide 26 in our earnings presentation for other accounting considerations.
Let me now discuss our updated full year 2022 guidance. We are increasing our full year revenue guidance from our previous range of $9.9 billion to $10.1 billion to a new range of $10 billion to $10.15 billion and increasing our full year non-GAAP diluted EPS guidance from our previous range of $15.25 to $16.75 to a new range of $16.50 to $17.15. This guidance increase is primarily a result of better-than-expected top line performance and continued cost management.
Our guidance ranges for non-GAAP R&D expense, non-GAAP SG&A expense and our non-GAAP tax rate are all unchanged from prior guidance. As a reminder, we typically see a seasonally higher SG&A spend in the fourth quarter. This guidance assumes that foreign exchange rates as of September 30 will remain in effect for the remainder of the year, net of hedging activities. This financial guidance also assumes continued declines in Rituxan revenue due to biosimilar competition, as well as continued erosion of TECFIDERA revenue due to generic entry. Please see our press release for other important guidance assumptions.
In summary, we continue to execute well across our core business and are pleased to be raising our financial guidance for the year. We are excited about the recent lecanemab readout and believe our diversified pipeline across neuroscience, specialized immunology and biosimilars has the potential to return Biogen to growth over time as we continue to build a multi-franchise portfolio. As always, we remain focused on creating long-term value for our shareholders.
And with that, we will now open the call for questions.
