Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,514.37 65.12 0.40%
S&P 500 1,879.55 7.66 0.41%
NASDAQ 4,161.46 39.91 0.97%
Ticker Volume Price Price Delta
STOXX 50 3,190.06 -9.63 -0.30%
FTSE 100 6,675.19 -6.57 -0.10%
DAX 9,572.59 -27.50 -0.29%
Ticker Volume Price Price Delta
NIKKEI 14,546.27 157.50 1.09%
TOPIX 1,173.81 11.31 0.97%
HANG SENG 22,509.64 -221.04 -0.97%

Biogen Idec Total Revenues Increased 10% to $1.4 Billion in First Quarter 2013



  Biogen Idec Total Revenues Increased 10% to $1.4 Billion in First Quarter
  2013

-- First Quarter Non-GAAP Diluted EPS Rose 41% and GAAP Diluted EPS Up 43% --

    -- TECFIDERA™ (Dimethyl Fumarate) Approved and Launched in the US as a
   First-Line Oral Treatment for Relapsing Forms of Multiple Sclerosis; EU
                             Approval Pending --

 -- Gained Full Strategic, Commercial and Decision-Making Rights to TYSABRI^®
                                      --

Business Wire

WESTON, Mass. -- April 25, 2013

Biogen Idec Inc. (NASDAQ: BIIB) today reported first quarter 2013 total
revenues of $1.4 billion, an increase of 10% compared to the first quarter of
2012. Non-GAAP diluted EPS for the first quarter of 2013 were $1.97, an
increase of 41% over the first quarter of 2012. Non-GAAP net income
attributable to Biogen Idec for the first quarter 2013 was $469 million, an
increase of 39% versus the first quarter of 2012.

First quarter 2013 GAAP diluted EPS were $1.79, an increase of 43% versus the
first quarter of 2012. GAAP net income for the first quarter was $427 million,
an increase of 41% versus the first quarter of 2012. A reconciliation of our
GAAP to Non-GAAP results is attached to this press release.

Revenue gains were led by the performance of our marketed therapies: AVONEX^®
(interferon beta-1a) with revenues increasing 13% year-over-year to $746
million; and TYSABRI^® (natalizumab) with revenues increasing 9%
year-over-year to $312 million. RITUXAN^® (rituximab) revenues from our
unconsolidated joint business arrangement were $265 million for the quarter, a
decrease of 7% from the prior year.

“2013 is off to an exciting start for Biogen Idec and the patients we serve,”
said George A. Scangos, Ph.D., Chief Executive Officer. “We achieved several
milestones that expand our leadership in supporting people living with MS,
including the launch of TECFIDERA^TM (dimethyl fumarate) in the US,
acquisition of full rights and control of TYSABRI and a positive phase 3 trial
for PLEGRIDY^TM (Peginterferon beta-1a) in the treatment of
relapsing-remitting multiple sclerosis.”

“We also are preparing for the potential launches in 2014 of our long-lasting
clotting factor therapies for hemophilia, rFVIIIFc and rFIXFc,” he continued.
“We believe these therapies have the potential to transform the standard of
care for hemophilia patients around the world. Our entire organization is
aligned behind our focused mission and executing well in every aspect of the
business – from launching new products to advancing our deep early-stage
pipeline.”

Other Financial Highlights

  * During the first quarter of 2013, we received updated technical guidance
    from the IRS concerning our U.S. federal manufacturing deduction related
    to our unconsolidated joint business. Based on this guidance, we
    reevaluated our manufacturing deduction and recorded a $33 million
    benefit, which is net of ancillary federal and state tax effects, related
    to the years 2005 through 2012, in the first quarter of 2013. We also
    experienced modest favorability due to the reinstatement of the federal
    R&D tax credit and the award of a state life science tax credit. As a
    result, Biogen Idec benefited from low GAAP and non-GAAP tax rates of
    13.2% and 14.0%, respectively. These unusually low tax rates benefited our
    non-GAAP EPS by approximately $0.17 and GAAP EPS by approximately $0.16.
  * Our share of RITUXAN revenues from our unconsolidated joint business was
    reduced by approximately $42 million during the first quarter of 2013 as a
    result of damages awarded against Genentech in its arbitration with
    Hoechst GmbH.
  * Revenues for FAMPYRA^® and FUMADERM™ totaled $38 million in the first
    quarter of 2013, compared to $28 million in the first quarter of 2012.
  * Royalties were $33 million in the first quarter of 2013, an increase of
    14% compared to the first quarter of 2012.
  * Corporate partner revenues in the first quarter of 2013 were $22 million,
    compared to $3 million in the first quarter of 2012.
  * As of March 31, 2013, Biogen Idec had Cash, Cash Equivalents and a Reverse
    Repurchase Agreement totaling approximately $3.6 billion, of which we used
    $3.25 billion to fund our acquisition of TYSABRI rights from Elan on April
    2, 2013.
  * On April 17, 2013, Standard & Poor’s raised Biogen Idec’s credit rating to
    A- from BBB+ reflecting the launch of TECFIDERA, greater TYSABRI revenue
    due to the close of the transaction with Elan, low leverage and strong and
    growing cash flow generation.

2013 Financial Guidance

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

  * Revenue growth is expected to be approximately 16% to 18%.
  * Cost of Sales is expected to be approximately 13% to 15% of total revenue.
  * R&D expense is expected to be approximately 22% to 23% of total revenue.
  * R&D expense includes up to $75 million earmarked for potential new
    business development deals.
  * SG&A expense is expected to be approximately 24% to 26% of total revenue.
  * Tax expense is expected to be approximately 22% to 23% of pretax income.
  * Non-GAAP diluted EPS is expected to be between $7.80 and $7.90.
  * GAAP diluted EPS is expected to be between $6.69 and $6.79.
  * Capital expenditures are expected to be in the range of $250 to $270
    million.
  * Company anticipates an ending 2013 cash balance greater than $1 billion,
    of which the majority will be located in the U.S.

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

“In the first quarter, we continued to drive solid performance while making
substantial progress moving our late-stage programs towards approvals and
launch,” said Paul J. Clancy, Executive Vice President and Chief Financial
Officer. “Notably, we delivered solid EPS growth, continued to make
disciplined R&D investments, focused on building our MS franchise, and were
able to increase our outlook for the year. We expect to continue our strong
performance throughout 2013.”

Multiple Sclerosis (MS) Franchise Highlights

TECFIDERA (dimethyl fumarate)

The U.S. Food and Drug Administration’s (FDA) approved TECFIDERA on March 27,
2013, as a new first-line oral treatment for people living with relapsing
forms of MS. TECFIDERA is now available to MS patients across the United
States.

On March 22, 2013, the Committee for Medicinal Products for Human Use (CHMP)
issued a positive opinion recommending that the European Commission (EC)
provide marketing authorization for TECFIDERA in the European Union as a
first-line oral treatment for adults with relapsing-remitting multiple
sclerosis (RRMS). The EC decision on TECFIDERA is expected in the second
quarter of 2013.

On March 19, 2013, the U.S. Patent and Trademark Office issued a patent for
the TECFIDERA dosing regimen of 480 mg daily. This patent, which expires in
2028, adds to the growing portfolio of patents covering TECFIDERA. The
European Patent Office also recently determined that Biogen Idec’s application
for a patent covering the same dosing regimen of TECFIDERA is allowable. Once
granted, this patent would also expire in 2028.

TYSABRI (natalizumab)

TYSABRI revenues increased 9% year-over-year to $312 million. Global in-market
sales of TYSABRI in the first quarter of 2013 were $456 million, an increase
of 15% over the first quarter of 2012. The total was comprised of $257 million
in U.S. sales and $199 million in sales outside the U.S.

On April 2, 2013, Biogen Idec completed its purchase of Elan’s interest in
TYSABRI and gained full strategic, commercial and decision-making rights to
the product. Biogen Idec used its cash resources to make a payment of $3.25
billion to Elan. Subject to the terms of the agreement with Elan, the Company
and Elan will continue to share TYSABRI profits equally through April 30,
2013. Commencing May 1, 2013 and for the first twelve months thereafter, the
Company will make future contingent payments to Elan in an amount equal to 12%
of global net sales of TYSABRI, and thereafter, Biogen Idec will continue to
make contingent payments of 18% on annual global net sales of TYSABRI up to
$2.0 billion and 25% on annual global net sales that exceed $2.0 billion. In
2014 only, the $2.0 billion threshold will be pro-rated for the portion of
2014 remaining after the completion of the first twelve months of contingent
payments.

On March 18, 2013, Biogen Idec and Elan announced results from several studies
of TYSABRI that demonstrate its efficacy compared to other MS treatments,
provide additional data supporting anti-JC virus (JCV) antibody status
stability, and suggest better outcomes when progressive multifocal
leukoencephalopathy (PML) is detected early. These data were presented at the
65th Annual Meeting of the American Academy of Neurology (AAN) held in San
Diego, CA in March 2013.

Based on data available to us through the TOUCH^® prescribing program and
other third-party sources, as of the end of March 2013, the Company estimates
that approximately 73,600 patients were on commercial and clinical TYSABRI
therapy worldwide, and that cumulatively, approximately 115,400 patients have
been treated with TYSABRI in the post-marketing setting.

AVONEX (interferon beta-1a)

AVONEX revenues increased 13% year-over-year to $746 million. AVONEX remains
one of the most prescribed treatments for relapsing forms of MS worldwide and
continued to gain market share during the first quarter within the injectable
segment of the MS market place. The AVONEX PEN® auto-injector, a dosing
innovation designed to improve the treatment experience for patients receiving
once-a-week AVONEX, has now been commercially launched in 27 countries.

Additional Pipeline Development Highlights

During the first quarter Biogen Idec achieved a number of milestones toward
the development of its hemophilia program:

  * In March 2013, Biogen Idec submitted a Biologics License Application (BLA)
    to the FDA for the marketing approval of recombinant factor VIII Fc fusion
    protein (rFVIIIFc) for the treatment of hemophilia A. Recombinant FVIIIFc
    is the first hemophilia A product candidate in a new class of long-lasting
    clotting factor therapies being developed with the goal of reducing the
    burden of treatment for this condition.
  * On March 4, 2013, Biogen Idec announced that the FDA accepted the
    Company’s BLA for the marketing approval of recombinant factor IX Fc
    fusion protein (rFIXFc) for the treatment of hemophilia B and granted the
    Company a standard review timeline.
  * On February 8, 2013, Biogen Idec and Swedish Orphan Biovitrum (Sobi)
    released data at the 6th Annual Congress of the European Association for
    Haemophilia and Allied Disorders (EAHAD) in Warsaw, Poland. Data presented
    confirmed the ability of investigational rFVIIIFc and rFIXFc to provide
    long-lasting protection from bleeding with fewer injections than are
    required with the current standard of care for people with hemophilia.

On January 24, 2013, Biogen Idec announced positive, full first-year results
from its two-year pivotal Phase 3 ADVANCE study of PLEGRIDY, the Company’s
investigational candidate for RRMS. If approved, PLEGRIDY will be dosed once
every two weeks and we believe has the potential to be a preferred option in
the injectable class of MS treatments. We will be submitting our regulatory
applications to the FDA and EMA by mid-2013, for potential approval in 2014.

During March 16 through March 23, 2013, Biogen Idec presented more than 50
company-sponsored platform and poster presentations on data supporting its
multiple-marketed and pipeline therapies for neurological diseases at the AAN
Annual Meeting in San Diego. Biogen Idec presented notable data on several
programs including: TECFIDERA, TYSABRI, AVONEX, PLEGRIDY, daclizumab
high-yield process, and anti-LINGO.

On April 4, 2013, Biogen Idec announced results from the daclizumab high-yield
process (DAC HYP) SELECT clinical trial were published in an on-line article
in The Lancet. SELECT was a Phase 2b registrational study designed to
determine the efficacy and safety of DAC HYP in patients with RRMS.

Conference Call and Webcast

The Company's earnings conference call for the first quarter will be broadcast
via the internet at 8:00 a.m. EDT on April 25, 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.

About AVONEX

AVONEX is one of the most prescribed treatments for relapsing forms of MS
worldwide. AVONEX is indicated for the treatment of patients with relapsing
forms of MS to slow the accumulation of physical disability and decrease the
frequency of clinical exacerbations. Patients with MS in whom efficacy has
been demonstrated include patients who have experienced a first clinical
episode and have MRI features consistent with MS.

Symptoms of depression, suicidal ideation, or psychosis, and cases of suicide,
have been reported with increased frequency with patients receiving AVONEX.
Severe hepatic injury, including cases of hepatic failure has been reported
rarely in patients. Rare cases of anaphylaxis have been reported. While beta
interferons do not have any known direct cardiac toxicity, cases of congestive
heart failure, cardiomyopathy, and cardiomyopathy with congestive heart
failure have been reported in patients without known predisposition. Decreased
peripheral blood counts have been reported from postmarketing experience.
Seizures have been reported in patients using AVONEX, including patients with
no prior history of seizure. Autoimmune disorders of multiple target organs
have been reported. Routine periodic blood chemistry, hematology, liver
function, and thyroid function tests are recommended. There are no adequate
and well-controlled studies in pregnant women. AVONEX should be used during
pregnancy only if the potential benefit justifies the potential risk to the
fetus. The most common side effects associated with AVONEX treatment are
flu-like symptoms, including chills, fever, myalgia, and asthenia.

For additional important safety information, and the full United States
prescribing information, please see www.AVONEX.com.

About TYSABRI

TYSABRI is approved in more than 65 countries. TYSABRI is approved in the
United States as a monotherapy for relapsing forms of MS, generally for
patients who have had an inadequate response to, or are unable to tolerate, an
alternative MS therapy due to the risk of progressive multifocal
leukoencephalopathy (PML). In the European Union, it is approved for highly
active RRMS in adult patients who have failed to respond to beta interferon or
have rapidly evolving, severe RRMS.

TYSABRI has advanced the treatment of MS patients with its established
efficacy. Data from the Phase 3 AFFIRM trial, which was published in the New
England Journal of Medicine, showed that after two years, TYSABRI treatment
led to a 68 percent relative reduction (p<0.001) in the annualized relapse
rate when compared with placebo and reduced the relative risk of disability
progression by 42-54 percent (p<0.001).

TYSABRI increases the risk of PML, an opportunistic viral infection of the
brain which usually leads to death or severe disability. Infection by the JC
virus (JCV) is required for the development of PML and patients who are
anti-JCV antibody positive have a higher risk of developing PML. Factors that
increase the risk of PML are presence of anti-JCV antibodies, prior
immunosuppressant use, and longer TYSABRI treatment duration. Patients who
have all three risk factors have the highest risk of developing PML. Other
serious adverse events that have occurred in TYSABRI-treated patients include
hypersensitivity reactions (e.g., anaphylaxis) and infections, including
opportunistic and other atypical infections. Clinically significant liver
injury has also been reported in the post-marketing setting. A list of adverse
events can be found in the full TYSABRI product labeling for each country
where it is approved.

For additional important safety information, and the full TYSABRI prescribing
information, please see www.TYSABRI.com.

About TECFIDERA

TECFIDERA delayed-release capsules are indicated for the treatment of patients
with relapsing forms of MS. TECFIDERA has been proven to reduce MS relapses,
progression of disability and MS brain lesions. The efficacy and safety of
TECFIDERA has been studied in a large, global clinical program with more than
3,600 MS patients, which includes an ongoing long-term extension study. It is
believed that TECFIDERA provides a new approach to treating MS by activating
the Nrf2 pathway, although its exact mechanism of action is unknown. This
pathway provides a way for cells in the body to defend themselves against
inflammation and oxidative stress caused by conditions like MS.

The most common adverse reactions for TECFIDERA were flushing, mostly mild to
moderate in nature, and GI events (i.e., diarrhea, nausea, abdominal pain).
These events are most common at the start of therapy and usually decrease over
time.

TECFIDERA may decrease lymphocyte counts. Before starting treatment with
TECFIDERA, a recent CBC (i.e., within six months) should be available. A CBC
is recommended annually and as clinically indicated.

There are no adequate and well-controlled studies in pregnant women. TECFIDERA
should be used during pregnancy only if the potential benefit justifies the
potential risk to the fetus.

For additional important safety information, and the full TECFIDERA
prescribing information, please see www.TECFIDERA.com.

Safe Harbor

This press release contains forward-looking statements, including statements
about potential product launches, 2013 financial guidance, growth prospects,
regulatory submissions and agency actions, and the development,
commercialization and therapeutic impact of new and potential 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
executing our commercial launch of TECFIDERA, 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
                                               Ended March 31,
                                               2013              2012
Revenues:
                                                                  
Product, net                                   $ 1,095,779       $ 975,488
                                                                  
Unconsolidated joint business                    264,606           284,552
                                                                  
Royalty                                          32,820            28,800
                                                                  
Corporate partner                                21,891            3,174      
                                                                  
Total revenues                                   1,415,096         1,292,014  
                                                                  
Cost and expenses:
                                                                  
Cost of sales, excluding amortization of         133,749           133,197
acquired intangible assets
                                                                  
Research and development                         284,340           355,962
                                                                  
Selling, general and administrative              352,598           300,089
                                                                  
Collaboration profit sharing                     85,357            85,894
                                                                  
Amortization of acquired intangible assets       51,301            45,961
                                                                  
Fair value adjustment of contingent              2,277             1,258
consideration
                                                                  
Restructuring charge                             -                 283        
                                                                  
Total cost and expenses                          909,622           922,644    
                                                                  
Gain on sale of rights                           5,051             -          
                                                                  
Income from operations                           510,525           369,370
                                                                  
Other income (expense), net                      (14,457   )       15,144     
                                                                  
Income before income tax expense and             496,068           384,514
equity in loss of investee, net of tax
                                                                  
Income tax expense                               65,508            82,148
                                                                  
Equity in loss of investee, net of tax           3,811             -          
                                                                  
Net income                                       426,749           302,366
                                                                  
Net income (loss) attributable to                -                 (295      )
non-controlling interests, net of tax
                                                                  
Net income attributable to Biogen Idec         $ 426,749         $ 302,661    
Inc.
                                                                  
                                                                  
Net income per share:
Basic earnings per share attributable to       $ 1.80            $ 1.26       
Biogen Idec Inc.
                                                                  
Diluted earnings per share attributable to     $ 1.79            $ 1.25       
Biogen Idec Inc.
                                                                  
                                                                  
Weighted-average shares used in
calculating:
Basic earnings per share attributable to         236,837           239,754    
Biogen Idec Inc.
                                                                  
Diluted earnings per share attributable to       238,304           241,828    
Biogen Idec Inc.
                                                                  

TABLE 2
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
                                                                 
                                                 As of            As of
                                                 March 31,        December 31,
                                                 2013             2012
ASSETS
                                                                   
Cash, cash equivalents, reverse repurchase       $ 3,631,302      $ 1,705,710
 agreements and marketable securities
                                                                   
Accounts receivable, net                           753,611          686,848
                                                                   
Inventory                                          506,557          447,373
                                                                   
Other current assets                               437,368          404,406
                                                                   
Total current assets                               5,328,838        3,244,337
                                                                   
Marketable securities                              -                2,036,658
                                                                   
Property, plant and equipment, net                 1,736,811        1,742,226
                                                                   
Intangible assets, net                             1,581,511        1,631,547
                                                                   
Goodwill                                           1,210,718        1,201,296
                                                                   
Investments and other assets                       306,839          274,054
                                                                   
TOTAL ASSETS                                     $ 10,164,717     $ 10,130,118
                                                                   
                                                                   
LIABILITIES AND EQUITY
                                                                   
Current portion of notes payable and line of     $ 203,317        $ 453,379
credit
                                                                   
Other current liabilities                          1,078,345        1,204,010
                                                                   
Long-term deferred tax liability                   156,667          217,272
                                                                   
Notes payable, line of credit and other            711,831          687,396
financing arrangements
                                                                   
Other long-term liabilities                        674,951          604,266
                                                                   
Equity                                             7,339,606        6,963,795
                                                                   
TOTAL LIABILITIES AND EQUITY                     $ 10,164,717     $ 10,130,118
                                                                     

                                                                    
TABLE 3
Biogen Idec Inc. and Subsidiaries
GAAP to Non-GAAP Reconciliation: Net Income and Net Income Per Share
(unaudited, in millions, except per share amounts)
                                                                       
                                                                       
                                For the Three Months
                                Ended March 31,
EARNINGS PER SHARE                 2013               2012    
                                                                       
GAAP earnings per               $  1.79            $  1.25
share - Diluted
Adjustments to net
income attributable                0.18               0.15    
to Biogen Idec Inc.
(as detailed below)
Non-GAAP earnings               $  1.97            $  1.40    
per 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                 $  426.7           $  302.7
Biogen Idec Inc.
Adjustments:
Amortization of
acquired intangible                48.6               43.3
assets
Fair value
adjustment of                      2.3                1.3
contingent
consideration
SG&A: Stock option                 1.9                0.4
expense
R&D: Stock option                  1.6                1.0
expense
R&D: Restructuring                 -                  1.3
and other
2010 Restructuring                 -                  0.3
initiatives
Non-controlling                    -                  (0.3   )
interests
Income tax effect
related to                         (11.7  )           (11.6  )
reconciling items
Non-GAAP net income
attributable to                 $  469.4           $  338.4   
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             $  1,608              239             $  6.74
to Biogen Idec Inc.
Adjustments:
Stock option expense               8
Restructuring and                  -
other
Amortization of
acquired intangible                314
assets
Fair value
adjustment of                      16
contingent
consideration
Income tax expense:
Income tax effect                  (74    )                            
related to
reconciling items
Projected Non-GAAP
net income                      $  1,872              239             $  7.85
attributable to
Biogen Idec Inc.

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 purchase accounting related items associated with the
acquistion of businesses, assets and 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.

Numbers may not foot due to rounding.

TABLE 4
Biogen Idec Inc. and Subsidiaries
Product Revenues
(unaudited, in thousands)
                                                   
                                                     
                           For the Three Months
                           Ended March 31,           
                                  2013                2012
PRODUCT REVENUES
                                                     
AVONEX®                    $      746,098           $ 661,620
                                                     
TYSABRI®                          312,170             285,532
                                                     
FAMPYRA®                          23,203              15,040
                                                     
FUMADERM®                         14,308              13,296
                                                     
Total product revenues     $      1,095,779         $ 975,488
                                                       

Contact:

Biogen Idec Media Contact:
Biogen Idec
Amanda Galgay, 781-464-3260
Senior Manager, Public Affairs
or
Biogen Idec
Daniel McIntyre, 781-464-3260
Senior Vice President, Public Affairs
or
Biogen Idec Investor Contacts:
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
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement