Biogen Idec Reports Second Quarter 2009 Results
Double Digit Revenue Growth; TYSABRI® Reaches $1 Billion Sales Run Rate
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jul 16, 2009 - Biogen Idec Inc. (NASDAQ: BIIB), a global biotechnology leader in the discovery, development, manufacturing, and commercialization of innovative therapies, today reported its second quarter 2009 results.
Second Quarter 2009 Highlights:
“During the second quarter we drove a clear acceleration of TYSABRI patient growth that puts the drug on a blockbuster run-rate,” said Biogen Idec CEO James C. Mullen, “Going forward, we continue to focus on products, pipeline and performance as the drivers of long-term shareholder value."
Revenues from AVONEX, one of Biogen Idec's therapies for patients with relapsing forms of multiple sclerosis (MS), increased 12% in the second quarter to $591 million as compared to the second quarter of 2008. U.S. sales of AVONEX increased 20% to $366 million and international sales increased 2% to $225 million year over year.
Revenues for the second quarter of 2009 included $276 million from Biogen Idec's joint business arrangement related to RITUXAN®, a treatment for certain B-cell non-Hodgkin's lymphomas (NHL) and rheumatoid arthritis (RA) that Biogen Idec co-promotes in the U.S. with Genentech. All U.S. sales of RITUXAN are recognized by Genentech, and Biogen Idec records its share of the pretax co-promotion profits. U.S. net sales of RITUXAN were $696 million in the second quarter 2009, as compared to $651 million in the second quarter of 2008, an increase of 7%.
During the second quarter of 2009, Biogen Idec recognized revenue of $188 million related to TYSABRI. This amount is comprised of:
As of the end of June 2009, approximately 43,300 patients were on commercial and clinical TYSABRI therapy worldwide. According to data available as of the end of June 2009:
Cumulatively, in the post-marketing setting:
Revenues from other products in the second quarter of 2009 were $12 million, as compared to $10 million in the second quarter of 2008.
Table 4 provides individual product revenues.
Royalties were $25 million in the second quarter of 2009 compared to $28 million in the second quarter of 2008.
As a result of its strong second quarter performance, Biogen Idec updated its 2009 full year guidance as follows:
This guidance excludes any significant business development activities.
Conference Call and Webcast
The company's earnings conference call for the second quarter will be broadcast via the internet at 8:30 a.m. ET on July 16, 2009, and will be accessible through the investor relations 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 earnings conference call and will be available on our web site subsequently through August 21, 2009.
About Biogen Idec
Biogen Idec creates new standards of care in therapeutic areas with high unmet medical needs. Biogen Idec is a global leader in the discovery, development, manufacturing, and commercialization of innovative therapies. Patients in more than 90 countries benefit from Biogen Idec's significant products that address diseases such as lymphoma, multiple sclerosis, and rheumatoid arthritis. For product labeling, press releases and additional information about the company, please visit www.biogenidec.com.
In addition to historical information, this press release contains forward-looking statements that are based on our current beliefs and expectations. These statements involve risks and uncertainties that could cause actual results to differ materially from those which we expect. Important factors which could cause actual results to differ from our expectations and which could negatively impact our financial condition and results of operations include our dependence on our three principal products, AVONEX, RITUXAN and TYSABRI, the importance of market acceptance and successful sales growth of TYSABRI, uncertainty of success in commercializing other products, the occurrence of adverse safety events with our products, competitive pressures, changes in the availability of reimbursement for our products, our dependence on collaborations over which we may not always have full control, failure to execute our growth initiatives, failure to comply with government regulation and possible adverse impact of changes in such regulation, problems with our manufacturing processes and our reliance on third parties, the impact of the global credit crisis, fluctuations in our effective tax rate, our significant investment in a new manufacturing facility in Denmark, our ability to attract and retain qualified personnel, the risks of doing business internationally, the election of two directors nominated by an activist shareholder, fluctuations in our operating results, our ability to protect our intellectual property rights and the cost of doing so, product liability claims, the market, interest and credit risks associated with our portfolio of marketable securities, our level of indebtedness, environmental risks, aspects of our corporate governance and collaborations and the other risks and uncertainties that are described in Item 1.A. Risk Factors in our annual report on Form 10-K and in other reports we file with the SEC. Forward-looking statements, like all statements in this press release, speak only as of the date of this press release (unless another date is indicated). Unless required by law, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise.
|Biogen Idec Inc.|
|June 30, 2009|
|Consolidated Statements of Income|
|(in thousands, except per share amounts)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Unconsolidated joint business||275,570||278,822||554,388||526,045|
|COST AND EXPENSES|
|Cost of sales||90,721||92,401||188,918||193,335|
|Research and development||416,453||252,259||695,931||510,491|
|Selling, general and administrative||220,829||245,689||442,660||461,518|
|Amortization of acquired intangible assets||93,234||72,869||182,482||147,650|
|Collaboration profit (loss) sharing||49,138||33,429||91,911||54,835|
|In-process research and development||-||-||-||25,000|
|Total cost and expenses||870,375||696,647||1,601,902||1,392,829|
|Income from operations||222,914||296,797||527,872||542,801|
|Other income (expense), net||14,680||(4,018||)||21,526||(938||)|
|INCOME BEFORE INCOME TAXES||237,594||292,779||549,398||541,863|
|Less: Net income attributable to noncontrolling interests||2,040||1,445||4,632||4,155|
|NET INCOME ATTRIBUTABLE TO BIOGEN IDEC INC.||$||142,845||$||206,628||$||386,832||$||369,725|
|BASIC EARNINGS PER SHARE||$||0.49||$||0.71||$||1.34||$||1.26|
|DILUTED EARNINGS PER SHARE||$||0.49||$||0.70||$|
Posted: July 2009