Biogen Idec First Quarter 2014 Revenues Reach $2.1 Billion Driven by Continued Strength of MS Franchise

  Biogen Idec First Quarter 2014 Revenues Reach $2.1 Billion Driven by
  Continued Strength of MS Franchise

Quarter Highlighted by EU Approval of TECFIDERA^® and US and Canadian Approval
                   of New Hemophilia B Therapy ALPROLIX^TM

  Neurology Pipeline Expands through Alzheimer’s Disease Collaboration with
                                    Eisai

Business Wire

CAMBRIDGE, Mass. -- April 23, 2014

Biogen Idec Inc. (NASDAQ: BIIB) today reported first quarter 2014 results,
including revenue of $2.1 billion, a 51% increase compared to the first
quarter of 2013. The revenue growth year-over-year was driven by strong
TECFIDERA performance and from recording 100% of TYSABRI^® revenues following
our acquisition of complete rights for the asset in the second quarter of
2013. First quarter 2014 non-GAAP diluted earnings per share (EPS) were $2.47,
an increase of 25% over the first quarter of 2013. Non-GAAP net income
attributable to Biogen Idec for the year was $587 million, an increase of 25%
over the first quarter of 2013.

On a reported basis, GAAP diluted EPS for the first quarter of 2014 were
$2.02, an increase of 13% over the first quarter of 2013. GAAP net income
attributable to Biogen Idec for the first quarter of 2014 was $480 million, an
increase of 12% versus the same period in the prior year. (A reconciliation of
GAAP to Non-GAAP quarterly financial results and 2014 guidance can be found in
Table 3 at the end of this release).

Diluted GAAP and non-GAAP EPS were reduced by approximately 35 cents as a
result of a $118 million R&D expense related our new Alzheimer’s disease
collaboration agreement with Eisai.

“Biogen Idec started 2014 on a strong note with the approval of TECFIDERA for
MS patients in Europe and ALPROLIX for hemophilia B patients in the United
States and Canada,” said Chief Executive Officer George A. Scangos, Ph.D.
“Following an excellent first year of sales in the U.S., TECFIDERA is off to a
solid start in Germany, with plans to launch in additional countries in the
coming months. Through the remainder of 2014 we anticipate regulatory
decisions on new products for hemophilia and MS, and several important
early-stage proof-of-concept and clinical study read-outs – and through our
collaboration with Eisai we are building one of the broadest research
portfolios targeting Alzheimer’s disease.”

First Quarter 2014 Performance Highlights

  *AVONEX^® revenues increased 2% compared to the first quarter of 2013 to
    $761 million. The total was primarily comprised of $476 million in U.S.
    sales and approximately $285 million in sales outside the U.S.
  *TYSABRI revenues increased by 41% to $441 million as a result of recording
    100% of TYSABRI revenues following our acquisition of complete rights to
    the asset in the second quarter of 2013. Global in-market sales for
    TYSABRI for the first quarter of 2014 decreased 3% compared to the first
    quarter of 2013.
  *TECFIDERA revenues were $506 million. The total was comprised of $460
    million in U.S. sales and approximately $46 million in sales outside the
    U.S.
  *RITUXAN^® and GAZYVA^TM net revenues from our unconsolidated joint
    business arrangement were $297 million.

Other Financial Results

  *Revenues for FAMPYRA^® and FUMADERM^TM totaled $35 million in the first
    quarter of 2014, compared to $38 million in the first quarter of 2013.
  *Royalty revenues totaled $38 million in the first quarter of 2014,
    compared to $33 million in the first quarter of 2013.
  *Corporate partner revenues totaled $52 million in the first quarter of
    2014 compared to $22 million in the first quarter of 2013.
  *As of March 31, 2014, Biogen Idec had cash, cash equivalents and
    marketable securities totaling approximately $2.0 billion.

Updated 2014 Financial Guidance

Biogen Idec also increased its full year 2014 financial guidance. This
guidance consists of the following components:

  *Revenue growth is expected to be approximately 26% to 28%.
  *R&D expense is expected to be approximately 20% to 22% of total revenue.

       *Our full year guidance for R&D expense continues to earmark
         approximately $200 million for new early stage business development
         opportunities, of which the Eisai transaction is included in this
         amount.

  *SG&A expense is expected to be approximately 22% to 23% of total revenue.
  *Non-GAAP diluted EPS is expected to be between $11.35 and $11.45.
  *GAAP diluted EPS is expected to be between $9.85 and $9.95.

Biogen Idec may incur charges, realize gains or experience other events in
2014 that could cause actual results to vary from this guidance.

Multiple Sclerosis (MS) Events

  *On February 3, 2014, TECFIDERA (dimethyl fumarate) was approved by the
    European Commission as a first-line oral treatment for people with
    relapsing-remitting multiple sclerosis, the most common form of multiple
    sclerosis.
  *In March 2014, the U.S. Food and Drug Administration (FDA) extended the
    initial Prescription Drug User Fee Act date for its review of the
    Biologics License Application (BLA) for marketing approval of PLEGRIDY™, a
    subcutaneous peginterferon beta-1a candidate for relapsing forms of
    multiple sclerosis. The company now anticipates a U.S. launch of PLEGRIDY
    in the second half of 2014.

Hemophilia Events

  *On March 21, 2014, Health Canada approved ALPROLIX™ [Coagulation Factor IX
    (Recombinant), Fc Fusion Protein], for the control and prevention of
    bleeding episodes and routine prophylaxis in adults and children aged 12
    and older, with hemophilia B. In Canada, ALPROLIX is the first approved
    long-acting hemophilia B therapy and is indicated to prevent or reduce the
    frequency of bleeding episodes with prophylactic infusions starting at
    once weekly or once every 10-14 days.
  *On March 28, 2014, the FDA approved ALPROLIX. In the U.S., ALPROLIX is
    indicated for the control and prevention of bleeding episodes,
    perioperative management and routine prophylaxis in adults and children
    with hemophilia B. The therapy is shown to reduce bleeding episodes with
    prophylactic infusions starting at least a week apart or up to every 10
    days.
  *On April 10, 2014, Biogen Idec and Swedish Orphan Biovitrum AB released
    positive top-line results of the Kids A-LONG Phase 3 clinical study that
    evaluated the safety and efficacy of ELOCTATE™, an investigational
    recombinant factor VIII Fc fusion protein product candidate, in children
    with severe hemophilia A. ELOCTATE was generally well-tolerated and no
    inhibitors (neutralizing antibodies that may interfere with the activity
    of the therapy) were detected. Efficacy analyses showed twice-weekly
    prophylactic dosing with ELOCTATE maintained low bleeding rates in
    children.

Pipeline Development Highlights

  *In January 2014, Biogen Idec entered into an exclusive worldwide
    collaboration and license agreement with Sangamo BioSciences focused on
    the development of therapeutics for hemoglobinopathies, inherited
    conditions that result from the abnormal structure or underproduction of
    hemoglobin.
  *In March 2014, Biogen Idec and Eisai Co., Ltd. entered into a
    collaboration to develop and commercialize two of Eisai’s clinical
    candidates for Alzheimer’s disease, E2609 and BAN2401. The agreement also
    provides Eisai with an option to jointly develop and commercialize two of
    Biogen Idec’s candidates for AD, the anti-amyloid beta antibody BIIB037
    and an anti-tau monoclonal antibody.

Corporate and Commercial Activities

  *In January 2014, Biogen Idec and UCB announced that they have signed
    exclusive agreements granting UCB the right to commercialize Biogen Idec
    products in South Korea, Hong Kong, Thailand, Singapore, Malaysia and
    Taiwan, and to develop and commercialize Biogen Idec products in China.
  *In February 2014, Biogen Idec announced that Chairman of the Board William
    D. (Bill) Young will retire from the Company’s Board of Directors,
    effective at the Company’s 2014 annual meeting of stockholders. Mr. Young
    has been a member of Biogen Idec’s Board of Directors since 1997 and has
    served as Chairman of the Board since 2010. Stelios Papadopoulos, Ph.D., a
    member of Biogen Idec’s Board of Directors since 2008, has been appointed
    to assume the role of Chairman of the Board following the end of Mr.
    Young’s term.
  *On April 10, 2014, Biogen Idec announced the appointment of Adam M.
    Koppel, M.D., Ph.D., as senior vice president and chief strategy officer,
    effective May 15, 2014. Dr. Koppel will be responsible for leading
    corporate strategy and portfolio management. He will report to George
    Scangos, Ph.D., CEO, and will be a member of the Biogen Idec management
    team.

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 23, 2014, 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. 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 2014 financial guidance, anticipated regulatory decisions and data
read-outs, and potential product launches and timing thereof. 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 sales from our principal products; uncertainty of
success in executing our commercial launch of TECFIDERA; failure to protect
and enforce our data, intellectual property and other proprietary rights and
the diminution of our ability to derive anticipated benefits from our
products; difficulties in obtaining or changes in the availability of
reimbursement for our products; uncertainty of success in commercializing and
developing other products, including our ability to obtain product approvals
in a timely manner or at all for new or current products; the occurrence of
adverse safety events with our products; failure to compete effectively due to
significant product competition in the markets for our products; adverse
market and economic conditions, which may cause continued pressure on product
pricing or otherwise impact the extent of reimbursement for our products or
the timing of payments to us; dependence on collaborators and other third
parties for the development and commercialization of products; problems with
our manufacturing processes; failure to manage our growth and execute our
growth initiatives; failure to comply with government regulation; the risks of
doing business internationally; charges and other costs relating to our
properties; risks and uncertainties relating to the timing, outcome and impact
of legal, administrative and other proceedings and disputes; fluctuations in
our effective tax rate; our ability to attract and retain qualified personnel;
uncertainty and potential liabilities relating to product liability and
intellectual property claims; the market, interest and credit risks associated
with our portfolio of marketable securities; environmental risks; 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,
                                               2014              2013
Revenues:
                                                                 
Product, net                                   $ 1,742,765       $ 1,095,779
                                                                 
Unconsolidated joint business                    296,885           264,606
                                                                 
Royalty                                          37,856            32,820
                                                                 
Corporate partner                               52,245          21,891    
                                                                 
Total revenues                                  2,129,751       1,415,096 
                                                                 
Cost and expenses:
                                                                 
Cost of sales, excluding amortization of         279,245           133,749
acquired intangible assets
                                                                 
Research and development                         528,884           284,340
                                                                 
Selling, general and administrative              511,674           352,598
                                                                 
Amortization of acquired intangible              143,258           51,301
assets
                                                                 
Collaboration profit sharing                     -                 85,357
                                                                 
(Gain) loss on fair value remeasurement         (799      )      2,277     
of contingent consideration
                                                                 
Total cost and expenses                         1,462,262       909,622   
                                                                 
Gain on sale of rights                          3,859           5,051     
                                                                 
Income from operations                           671,348           510,525
                                                                 
Other income (expense), net                     (5,601    )      (14,457   )
                                                                 
Income before income tax expense and             665,747           496,068
equity in loss of investee, net of tax
                                                                 
Income tax expense                               178,414           65,508
                                                                 
Equity in loss of investee, net of tax          7,605           3,811     
                                                                 
Net income                                       479,728           426,749
                                                                 
Net income (loss) attributable to               (228      )      -         
noncontrolling interests, net of tax
                                                                 
Net income attributable to Biogen Idec         $ 479,956        $ 426,749   
Inc.
                                                                 
                                                                 
Net income per share:
Basic earnings per share attributable to       $ 2.03           $ 1.80      
Biogen Idec Inc.
                                                                 
Diluted earnings per share attributable        $ 2.02           $ 1.79      
to Biogen Idec Inc.
                                                                 
                                                                 
Weighted-average shares used in
calculating:
Basic earnings per share attributable to        236,786         236,837   
Biogen Idec Inc.
                                                                 
Diluted earnings per share attributable         237,849         238,304   
to 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,
                                                 2014             2013
ASSETS
                                                                  
                                                                  
Cash, cash equivalents and marketable            $ 1,260,211      $ 1,222,729
securities
                                                                  
Accounts receivable, net                           1,018,487        824,406
                                                                  
Inventory                                          672,750          659,003
                                                                  
Other current assets                              573,576         478,796
                                                                  
Total current assets                               3,525,024        3,184,934
                                                                  
Marketable securities                              724,272          625,772
                                                                  
Property, plant and equipment, net                 1,744,266        1,750,710
                                                                  
Intangible assets, net                             4,364,384        4,474,653
                                                                  
Goodwill                                           1,232,916        1,232,916
                                                                  
Investments and other assets                      639,269         594,350
                                                                  
TOTAL ASSETS                                     $ 12,230,131     $ 11,863,335
                                                                  
                                                                  
LIABILITIES AND EQUITY
                                                                  
Current portion of notes payable and line        $ 3,550          $ 3,494
of credit
                                                                  
Other current liabilities                          1,590,697        1,754,785
                                                                  
Notes payable                                      591,012          592,433
                                                                  
Long-term deferred tax liability                   200,901          232,554
                                                                  
Other long-term liabilities                        702,908          659,231
                                                                  
Equity                                            9,141,063       8,620,838
                                                                  
TOTAL LIABILITIES AND EQUITY                     $ 12,230,131     $ 11,863,335
                                                                    


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             2014               2013
                                                                     
GAAP earnings per              $  2.02            $  1.79
share - Diluted
Adjustments to net
income
attributable to                  0.45             0.18   
Biogen Idec Inc.
(as detailed
below)
Non-GAAP earnings
per share -                    $  2.47           $  1.97   
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                $  480.0           $  426.7
Biogen Idec Inc.
Adjustments:
Amortization of
acquired                          139.8              48.6
intangible assets
(Gain) loss on
fair value
remeasurement of                  (0.8   )           2.3
contingent
consideration
SG&A: Stock option                2.6                1.9
expense
R&D: Stock option                 2.3                1.6
expense
Income tax effect
related to                       (37.0  )          (11.7  )
reconciling items
Non-GAAP net
income                         $  586.9          $  469.4  
attributable to
Biogen Idec Inc.
                                                                     
                                                                     
2014 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                            2,355              238             $  9.91
attributable to
Biogen Idec Inc.
Adjustments:
Stock option                      10
expense
Amortization of
acquired                          450
intangible assets
(Gain) loss on
fair value
remeasurement of                  10
contingent
consideration
Income tax
expense: Income
tax effect related               (115   )
to reconciling
items
Projected Non-GAAP
net income                       2,710             238             $  11.40
attributable to
Biogen Idec Inc.
                                                                     
Numbers may not
foot due to
rounding.
                                                                     

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
acquisition 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 fair value
remeasurements 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 March 31,
                                  2014            2013
PRODUCT REVENUES
                                                  
AVONEX®                           $ 761,474       $ 746,098
                                                  
TYSABRI®                            441,045         312,170
                                                  
TECFIDERA®                          505,709         -
                                                  
FAMPYRA®                            18,961          23,203
                                                  
FUMADERM ™                          15,576          14,308
                                                 
Total product revenues, net       $ 1,742,765     $ 1,095,779
                                                    

Contact:

Biogen Idec
Media Contact:
Jason Glashow, 781-464-3260
Senior Director, Public Affairs
or
Investor Contacts:
Claudine Prowse, Ph.D., 781-464-2442
Vice President, Investor Relations
or
Ben Strain, 781-464-2442
Associate Director, Investor Relations
 
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