Biogen Idec 2012 Revenue Increases 9% to $5.5 Billion

  Biogen Idec 2012 Revenue Increases 9% to $5.5 Billion

     --2012 Non-GAAP Diluted EPS Rises 11% and GAAP Diluted EPS Up 14% --

 -- Company Prepared for Second Quarter 2013 Launch of BG-12, under the Brand
                            Name, TECFIDERA^TM --

-- Expecting Late 2013 Launch for both Long-Lasting Factor VIII & Factor IX --

Business Wire

WESTON, Mass. -- January 28, 2013

Biogen Idec Inc. (NASDAQ: BIIB) today announced full year and fourth quarter
2012 results.

  *Total revenues in 2012 increased 9% to $5.5 billion year-over-year.
  *On a reported basis, calculated in accordance with accounting principles
    generally accepted in the U.S. (GAAP), full year 2012 GAAP diluted EPS
    were $5.76, an increase of 14% versus 2011. GAAP net income attributable
    to Biogen Idec for the year was $1.4 billion, an increase of 12% versus
    2011.
  *Non-GAAP diluted EPS for 2012 were $6.53, an increase of 11% over 2011.
    Non-GAAP net income attributable to Biogen Idec for 2012 was $1.6 billion,
    an increase of 8% versus 2011.

As of December 31, 2012, Biogen Idec had cash, cash equivalents and marketable
securities of approximately $3.7 billion.

"We recorded another solid year of revenue growth and profitability, all while
advancing our late-stage pipeline and investing in upcoming product launches,"
said George A. Scangos, Ph.D., chief executive officer, for Biogen Idec. "We
are poised to begin what we expect will be a remarkable period of growth,
driven by our promising compounds including TECFIDERA and Peginterferon
beta-1a for MS, and both Factor VIII and Factor IX for hemophilia. We
appreciate the excitement that MS and hemophilia patients have expressed to us
about these candidates, and our teams are well prepared to support the
launches. We expect MS and hemophilia patients will benefit from these
important new products for years to come."

Full Year 2012 Highlights:

  *TYSABRI® (natalizumab) revenues increased 5% year-over-year to $1.1
    billion while AVONEX® (interferon beta-1a) revenues increased 8%
    year-over-year to $2.9 billion. RITUXAN® (rituximab) revenues from our
    unconsolidated joint business arrangement were $1.1 billion for the year,
    an increase of 14% versus prior year.
  *Global in-market sales of TYSABRI for the full year of 2012 were $1.6
    billion, an increase of 8% over 2011. The total was comprised of $886
    million in U.S. sales and $745 million in sales outside the U.S.
  *Based upon data available to us through the TOUCH® prescribing program and
    other third-party sources, as of the end of December 2012, the Company
    estimates that approximately 72,700 patients were on commercial and
    clinical TYSABRI therapy worldwide, and that cumulatively approximately
    112,200 patients have ever been treated with TYSABRI in the post-marketing
    setting.
  *For the full year, revenues from other products were $117 million, an
    increase of 67% versus 2011.
  *Table 4 provides individual product revenues.
  *Royalties in 2012 increased 6% to $169 million, versus 2011.
  *Corporate partner revenues for the full year of 2012 were $44 million,
    compared to $57 million in 2011.

Fourth Quarter 2012 Highlights:

  *Fourth quarter revenues increased 7% to $1.4 billion, compared to the
    fourth quarter of 2011. TYSABRI revenues increased 10% year-over-year to
    $295 million while AVONEX revenues increased 7% year-over-year to $753
    million. RITUXAN revenues from our unconsolidated joint business
    arrangement were $281 million for the quarter, an increase of 9% over the
    prior year.
  *Global in-market sales of TYSABRI in the fourth quarter of 2012 were $433
    million, an increase of 14% over the fourth quarter of 2011. The total was
    comprised of $243 million in U.S. sales and $190 million in sales outside
    the U.S.
  *Revenues from other products in the fourth quarter of 2012 were $26
    million, compared to $24 million in the fourth quarter of 2011.
  *Royalties were $56 million in the fourth quarter of 2012, an increase of
    7% compared to the fourth quarter of 2011.
  *For the fourth quarter of 2012, corporate partner revenues were $6
    million, compared to $20 million in 2011.
  *During the quarter, we corrected our accounting for taxes on capitalized
    interest at our Denmark facility. The error accumulated over several prior
    years and increased tax expense in the quarter by $29 million. GAAP and
    non-GAAP net income attributable to Biogen Idec and diluted EPS include
    the impact of our correction. This unfavorably impacted both GAAP and
    non-GAAP fourth quarter 2012 diluted EPS by 12 cents.
  *Fourth quarter 2012 GAAP diluted EPS were $1.23, an increase of 1% over
    the fourth quarter of 2011. GAAP net income attributable to Biogen Idec
    for the quarter was $292 million, a decrease of 3% from the fourth quarter
    of 2011.
  *Non-GAAP diluted EPS for the fourth quarter of 2012 were $1.40, a decrease
    of 7% over the fourth quarter of 2011. Non-GAAP net income attributable to
    Biogen Idec for the fourth quarter of 2012 was $335 million, a decrease of
    10% from the fourth quarter of 2011. Table 3 includes a reconciliation of
    our GAAP to non-GAAP results.

Late Stage Pipeline Updates

On January 24, 2013, Biogen Idec released the primary efficacy analysis and
safety data, from its Phase 3 pivotal clinical trial, ADVANCE. Results support
peginterferon beta-1a as a potential treatment dosed every two weeks or every
four weeks for relapsing-remitting multiple sclerosis. Peginterferon beta-1a
is a new molecular entity in which interferon beta-1a is pegylated to extend
its half-life and prolong its exposure in the body, enabling study of a less
frequent dosing schedule. Based on the top-line data from the ADVANCE clinical
trial, regulatory submissions in the United States and European Union are
planned for peginterferon beta-1a in mid-2013.

On January 4, 2013, Biogen Idec announced the company recently submitted a
Biologics License Application (BLA) to the FDA for the marketing approval of
recombinant factor IX Fc fusion protein (rFIXFc) for the treatment of
hemophilia B. rFIXFc is the first product candidate in a new class of
long-lasting clotting factor therapies that are being developed with the goals
of reducing the burden of treatment for this condition and enhancing
protection from bleeding. The regulatory submission was based on results from
B-LONG, the largest registrational Phase 3 clinical study in hemophilia B to
date.

On January 3, 2013, Biogen Idec reported top-line results of EMPOWER, a Phase
3 trial investigating dexpramipexole in people with amyotrophic lateral
sclerosis (ALS). The trial did not meet its primary endpoint, a joint rank
analysis of function and survival, and no efficacy was seen in the individual
components of function or survival. The trial also failed to show efficacy in
its key secondary endpoints. Additional analyses of multiple subpopulations
failed to demonstrate any efficacy among these groups. Based on these results,
Biogen Idec has discontinued development of dexpramipexole in ALS.

2013 Financial Guidance

Biogen Idec also announced its full year 2013 financial guidance. This
guidance consists of the following components:

  *Revenue growth is expected to be approximately 10%.
  *Cost of Sales is expected to be approximately 8% to 10% of total revenue.
  *R&D expense is expected to be approximately 22% to 23% of total revenue.
  *SG&A expense is expected to be approximately 24% to 26% of total revenue.
  *Tax expense is expected to be approximately 24% to 26% of pretax income.
  *Non-GAAP diluted EPS is expected to be between $7.15 and $7.25.
  *GAAP diluted EPS is expected to be between $6.45 and $6.55.
  *Capital expenditures are expected to be in the range of $250 to $270
    million.

Biogen Idec may incur charges, realize gains or experience other events in
2013 that could cause actual results to vary from this guidance.

“Our 2013 guidance reflects our belief in Biogen Idec’s continued strong
performance based on the strength of our core existing products and our
anticipated product launches," said Paul Clancy, chief financial officer, for
Biogen Idec. “We are investing smartly to ensure our commercial operations are
ready to support TECFIDERA, Factor VIII and Factor IX, and we will maintain
our disciplined SG&A and R&D investments in 2013. This is an exciting time for
all of us at Biogen Idec, as well as for patients and our shareholders.”

Fourth Quarter Events

  *On December 20, 2012, Biogen Idec announced it created a new research
    consortium in collaboration with several leading academic research centers
    that will leverage a range of scientific techniques and disciplines to
    identify new approaches to treating ALS. It is anticipated that
    coordinating research and sharing results across a number of different
    disciplines will greatly accelerate the understanding of the mechanism of
    ALS and the development of new targets and approaches to treatment.
  *On December 12, 2012, Biogen Idec and Eisai Inc. announced a strategic
    alliance aimed at bolstering the manufacturing capabilities of both
    companies’ Research Triangle Park (RTP)-based facilities. Under the terms
    of the agreement, Biogen Idec will lease a portion of the Eisai facility
    to manufacture oral solid dose products for both companies. Eisai will
    provide Biogen Idec with vial-filling services for biologic therapies and
    packaging services for oral solid dose products. The 10-year lease
    agreement, which is cancellable after five years and will become effective
    in February 2013, gives Biogen Idec the option to purchase the Eisai oral
    solid dose facility.
  *On December 10, 2012, Biogen Idec and Isis Pharmaceuticals, Inc. announced
    they have entered into a global collaboration agreement under which the
    companies will discover and develop antisense drugs against three targets
    to treat neurological or neuromuscular disorders.Biogen Idec and Isis are
    also developing antisense drugs to treat spinal muscular atrophy and
    myotonic dystrophy type 1 under previously established collaborations.
  *On November 29, 2012, Biogen Idec dedicated a new facility in RTP,
    consolidating its 300-person Patient Services operation within its RTP
    campus. The new 190,000 square foot building is anticipated to achieve
    LEED-Gold certified status in the coming months and will accommodate
    increasing levels of manufacturing activity at the site. The official
    groundbreaking for the building was in April 2011.
  *On November 8, 2012, Biogen Idec, together with a coalition of leaders in
    hemophilia advocacy and treatment, announced a nationwide program that
    will offer free genetic testing to people with hemophilia and their
    families. The initiative, called My Life, Our Future: Genotyping for
    Progress in Hemophilia, is a partnership between the National Hemophilia
    Foundation, the American Thrombosis and Hemostasis Network, Puget Sound
    Blood Center and Biogen Idec. Designed to help uncover genetic information
    that can be used by physicians to individualize the care of people with
    hemophilia, the initiative will also work to generate data that may lead
    to new scientific discoveries.

Conference Call and Webcast

The company's earnings conference call for the fourth quarter will be
broadcast via the internet at 8:00 a.m. ET on January 28, 2013, and will be
accessible through the Investors section of Biogen Idec's homepage,
www.biogenidec.com. Supplemental information in the form of a slide
presentation will also be accessible at the same location on the internet at
the time of the conference call and will be subsequently available on the
website for one month.

About Biogen Idec

Through cutting-edge science and medicine, Biogen Idec discovers, develops and
delivers to patients worldwide innovative therapies for the treatment of
neurodegenerative diseases, hemophilia and autoimmune disorders. Founded in
1978, Biogen Idec is the world’s oldest independent biotechnology company.
Patients worldwide benefit from its leading multiple sclerosis therapies, and
the company generates more than $5 billion in annual revenues. For product
labeling, press releases and additional information about the company, please
visit www.biogenidec.com.

Safe Harbor

This press release contains forward-looking statements, including statements
about potential product launches, 2013 financial guidance, growth prospects,
clinical trial readouts, regulatory submissions and the development of new
treatments. These forward-looking statements may be accompanied by such words
as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,”
“intend,” “may,” “plan,” “potential,” “project,” “target,” “will” and other
words and terms of similar meaning. You should not place undue reliance on
these statements.

These statements involve risks and uncertainties that could cause actual
results to differ materially from those reflected in such statements,
including our dependence on our three principal products, AVONEX, TYSABRI and
RITUXAN, the importance of TYSABRI’s sales growth, uncertainty of success in
commercializing and developing other products, product competition, the
occurrence of adverse safety events with our products, changes in the
availability of reimbursement for our products, adverse market and economic
conditions, our dependence on collaborations and other third parties over
which we may not always have full control, problems with our manufacturing
processes and our reliance on third parties, failure to comply with government
regulation, our ability to protect our intellectual property rights and have
sufficient rights to market our products together with the cost of doing so,
the risks of doing business internationally, failure to manage our growth and
execute our growth initiatives, charges and other costs relating to our
properties, fluctuations in our effective tax rate, our ability to attract and
retain qualified personnel, product liability claims, fluctuations in our
operating results, the market, interest and credit risks associated with our
portfolio of marketable securities, environmental risks, change of control
provisions in our collaborations and the other risks and uncertainties that
are described in the Risk Factors section of our most recent annual or
quarterly report and in other reports we have filed with the SEC.

These statements are based on our current beliefs and expectations and speak
only as of the date of this press release. We do not undertake any obligation
to publicly update any forward-looking statements.

                                                                
TABLE 1
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share amounts)
                                                                       
                                                                       
                       For the Three Months            For the Twelve Months
                       Ended December 31,              Ended December 31,
                        2012          2011          2012          2011      
Revenues:
                                                                       
Product, net           $ 1,074,676     $ 996,555       $ 4,166,074     $ 3,836,117
                                                                       
Unconsolidated           280,948         257,543         1,137,923       996,597
joint business
                                                                       
Royalty                  56,170          52,686          168,679         158,497
                                                                       
Corporate               6,147         19,926        43,785        57,423    
partner
                                                                       
Total revenues          1,417,941     1,326,710     5,516,461     5,048,634 
                                                                       
Cost and
expenses:
                                                                       
Cost of sales,
excluding
amortization of          133,828         139,638         545,494         466,780
acquired
intangible
assets
                                                                       
Research and             345,180         338,933         1,334,919       1,219,602
development
                                                                       
Selling, general
and                      375,977         283,916         1,277,465       1,056,133
administrative
                                                                       
Collaboration            77,944          73,453          317,895         317,771
profit sharing
                                                                       
Amortization of
acquired                 50,948          50,866          202,204         208,566
intangible
assets
                                                                       
Fair value
adjustment of            3,630           30,165          27,202          36,065
contingent
consideration
                                                                       
Restructuring           -             636           2,225         19,026    
charge
                                                                       
Total cost and          987,507       917,607       3,707,404     3,323,943 
expenses
                                                                       
Gain on sale of         15,073        -             46,792        -         
rights
                                                                       
Income from              445,507         409,103         1,855,849       1,724,691
operations
                                                                       
Other income            (14,290   )    (3,973    )    (744      )    (13,477   )
(expense), net
                                                                       
Income before
income tax
expense and              431,217         405,130         1,855,105       1,711,214
equity in loss
of investee, net
of tax
                                                                       
Income tax               136,341         104,919         470,554         444,528
expense
                                                                       
Equity in loss
of investee, net        2,749         -             4,518         -         
of tax
                                                                       
Net income               292,127         300,211         1,380,033       1,266,686
                                                                       
Net income
attributable to
non-controlling         -             (27       )    -             32,258    
interests, net
of tax
                                                                       
Net income
attributable to        $ 292,127      $ 300,238      $ 1,380,033    $ 1,234,428 
Biogen Idec Inc.
                                                                       
                                                                       
Net income per
share:
Basic earnings
per share              $ 1.23         $ 1.24         $ 5.80         $ 5.09      
attributable to
Biogen Idec Inc.
                                                                       
Diluted earnings
per share              $ 1.23         $ 1.22         $ 5.76         $ 5.04      
attributable to
Biogen Idec Inc.
                                                                       
Weighted-average
shares used in
calculating:
Basic earnings
per share               236,612       242,959       237,938       242,395   
attributable to
Biogen Idec Inc.
                                                                       
Diluted earnings
per share               238,324       245,382       239,740       245,033   
attributable to
Biogen Idec Inc.
                                                                       

                                                             
TABLE 2
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
                                                                  
                                                   As of          As of
                                                   December 31,   December 31,
                                                    2012           2011
ASSETS
                                                                  
Cash, cash equivalents and marketable              $ 1,705,710    $  1,690,657
securities
                                                                  
Accounts receivable, net                             686,848         584,603
                                                                  
Inventory                                            447,373         326,843
                                                                  
Other current assets                                 404,406         373,324
                                                                  
Total current assets                                 3,244,337       2,975,427
                                                                  
Marketable securities                                2,036,658       1,416,737
                                                                  
Property, plant and equipment, net                   1,742,226       1,571,387
                                                                  
Intangible assets, net                               1,631,547       1,608,191
                                                                  
Goodwill                                             1,201,296       1,146,314
                                                                  
Investments and other assets                         274,054         331,548
                                                                  
TOTAL ASSETS                                       $ 10,130,118   $  9,049,604
                                                                  
                                                                  
LIABILITIES AND EQUITY
                                                                  
                                                                  
Current portion of notes payable and line of       $ 453,379      $  3,292
credit
                                                                  
Other current liabilities                            1,204,010       909,597
                                                                  
Long-term deferred tax liability                     217,272         248,644
                                                                  
Notes payable, line of credit and other              687,396         1,060,808
financing arrangements
                                                                  
Other long-term liabilities                          604,266         400,276
                                                                  
Equity                                               6,963,795       6,426,987
                                                                  
TOTAL LIABILITIES AND EQUITY                       $ 10,130,118   $  9,049,604
                                                                  

                                                            
TABLE 3
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Statements of Income - Non-GAAP
(unaudited, in millions, except per share amounts)
                                                                   
                                                                   
                         For the Three Months        For the Twelve Months
                         Ended December 31,          Ended December 31,
EARNINGS PER               2012         2011      2012        2011    
SHARE
                                                                   
GAAP earnings
per share -              $  1.23         $ 1.22      $ 5.76        $ 5.04
Diluted
Adjustments to
net income
attributable to            0.17         0.29      0.77        0.86    
Biogen Idec
Inc. (as
detailed below)
Non-GAAP
earnings per             $  1.40        $ 1.51     $ 6.53       $ 5.90    
share - Diluted
                                                                   
                                                                   
An itemized reconciliation between net income attributable to Biogen Idec Inc.
on a GAAP basis and net income attributable to Biogen Idec Inc. on a non-GAAP
basis is as follows:
                                                                   
GAAP net income
attributable to          $  292.1        $ 300.2     $ 1,380.0     $ 1,234.4
Biogen Idec
Inc.
Adjustments:
R&D:
Restructuring               -              -           8.6           -
and other
R&D: Stock                  0.8            1.3         3.4           4.8
option expense
SG&A: Stock                 1.3            2.0         4.1           7.5
option expense
Amortization of
acquired                    49.1           49.5        194.3         206.4
intangible
assets
2010
Restructuring               -              0.6         2.2           19.0
initiatives
Fair value
adjustment of               3.6            30.2        27.2          36.1
contingent
consideration
Income tax
effect related             (12.3  )      (13.6 )    (53.2   )    (62.0   )
to reconciling
items
Non-GAAP net
income
attributable to          $  334.6       $ 370.2    $ 1,566.6    $ 1,446.2 
Biogen Idec
Inc.
                                                                   
                                                                   
2013 Full Year
Guidance GAAP
to non-GAAP
adjustments
                                                                   
An itemized
reconciliation
between
projected EPS
on a GAAP basis
and on a
non-GAAP basis
is as follows:
                                                                   
                           $           Shares      Diluted
                                                     EPS*
Projected GAAP
net income
attributable to          $  1,550          238       $ 6.51
Biogen Idec
Inc.
Adjustments:
Stock option                8
expense
Restructuring               -
and other
Amortization of
acquired                    194
intangible
assets
Fair value
adjustment of               16
contingent
consideration
Income tax
expense: Income
tax effect                 (54    )                
related to
reconciling
items
Projected
Non-GAAP net
income                   $  1,714        238      $ 7.20    
attributable to
Biogen Idec
Inc.
                                                                   

* 2013 full year projected GAAP and Non-GAAP diluted EPS amounts reflect
mid-points within ranges of estimated guidance.

Use of Non-GAAP Financial Measures

We supplement our consolidated financial statements presented on a GAAP basis
by providing additional measures which may be considered “non-GAAP” financial
measures under applicable SEC rules. We believe that the disclosure of these
non-GAAP financial measures provides additional insight into the ongoing
economics of our business and reflects how we manage our business internally,
set operational goals and forms the basis of our management incentive
programs. These non-GAAP financial measures are not in accordance with
generally accepted accounting principles in the United States and should not
be viewed in isolation or as a substitute for reported, or GAAP, net income
attributable to Biogen Idec Inc. and diluted earnings per share.

Our “Non-GAAP net income attributable to Biogen Idec Inc.” and “Non-GAAP
earnings per share - Diluted” financial measures exclude the following items
from GAAP net income attributable to Biogen Idec Inc. and diluted earnings per
share:

1. Purchase accounting and merger-related adjustments.

We exclude certain charges related to the 2003 merger between Biogen Inc. and
Idec Pharmaceuticals, Inc., certain acquisition-related items, and certain
amounts in relation to the consolidation of variable interest entities for
which we are the primary beneficiary. These adjustments include charges for
in-process research and development, the amortization of certain acquired
intangible assets and adjustments to the fair value of our contingent
consideration obligations. The exclusion of these charges provides management
and investors with a supplemental measure of performance which the Company
believes better reflects the underlying economics of the business.

2. Stock option expense recorded in accordance with the accounting standard
for share-based payments.

We believe that excluding the impact of expensing stock options better
reflects the recurring economic characteristics of our business.

3. Other items.

We evaluate other items on an individual basis, and consider both the
quantitative and qualitative aspects of the item, including (i) its size and
nature, (ii) whether or not it relates to our ongoing business operations, and
(iii) whether or not we expect it to occur as part of our normal business on a
regular basis. We also include an adjustment to reflect the related tax effect
of all reconciling items within our reconciliation of our GAAP to Non-GAAP net
income attributable to Biogen Idec Inc.

                                      
TABLE 4
Biogen Idec Inc. and Subsidiaries
Product Revenues
(unaudited, in thousands)
                                           
                                           
                             For the Three Months
                             Ended December 31,
                              2012         2011
PRODUCT REVENUES
                                           
AVONEX®                      $ 753,212     $ 703,226
                                           
TYSABRI®                       295,171       269,350
                                           
FAMPYRA®                       10,509        10,433
                                           
FUMADERM®                      15,784        13,546
                                           
Other                          -             -
                                          
Total product revenues       $ 1,074,676   $ 996,555
                                           
                                           
                             For the Twelve Months
                             Ended December 31,
                              2012         2011
PRODUCT REVENUES
                                           
AVONEX®                      $ 2,913,105   $ 2,686,624
                                           
TYSABRI®                       1,135,896     1,079,448
                                           
FAMPYRA®                       57,398        13,569
                                           
FUMADERM®                      59,675        54,728
                                           
Other                          -             1,748
                                          
Total product revenues       $ 4,166,074   $ 3,836,117

Contact:

Biogen Idec Media:
Biogen Idec
Banks Willis, (781) 464-3260
Senior Manager, Public Affairs
or
Biogen Idec Investor:
Biogen Idec
Ben Strain, (781) 464-2442
Senior Manager, Investor Relations
or
Biogen Idec
Claudine Prowse, Ph.D., (781) 464-2442
Vice President, Investor Relations
 
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