Biogen Idec Reports Second Quarter 2010 Results
Double-Digit Revenue Growth of 11% Year Over Year
WESTON, Mass.--(BUSINESS WIRE)--Jul 20, 2010 - Biogen Idec Inc. (NASDAQ: BIIB), a global biotechnology leader in the discovery, development, manufacturing, and commercialization of innovative therapies, today announced its second quarter 2010 results.
Second Quarter 2010 Highlights:
As of June 30, 2010, Biogen Idec had cash, cash equivalents and marketable securities of approximately $1.5 billion.
Biogen Idec's newly appointed Chief Executive Officer, George A. Scangos, Ph.D. said, “Biogen Idec had a solid second quarter. Our charge now is to build on the quarter, aggressively execute our marketing plans for AVONEX, complete the patient and risk stratification strategy for TYSABRI, move the late-stage pipeline forward rapidly, and rationalize the R&D portfolio. We have the potential to launch five new products in the next three years. I'm excited about the opportunities ahead and eager to address our challenges head-on and work with the management team and Board to drive Biogen Idec to achieve its full potential.”
TYSABRI Patient Growth
Based upon data available to Biogen Idec through the TOUCH® prescribing program and other third-party sources, Biogen Idec estimates that as of the end of June 2010 approximately 52,700 patients were on commercial and clinical TYSABRI therapy worldwide, and that cumulatively approximately 71,400 patients have ever been treated with TYSABRI in the post-marketing setting.
Other Products and Royalties
Revenues from other products in the second quarter of 2010 were $12 million, the same as in the second quarter of 2009.
Table 4 provides individual product revenues.
Royalty revenues were $30 million in the second quarter of 2010 compared to $25 million in the second quarter of 2009.
Corporate partner revenues were $17 million in the second quarter of 2010, versus $2 million in the second quarter of 2009.
Share Repurchase Programs
In April 2010, the Board approved a $1.5 billion share repurchase program. During the second quarter of 2010, Biogen Idec repurchased and retired 20.8 million shares at a total cost of $1 billion. Subsequent to quarter end through July 16, Biogen Idec repurchased an additional 4.7 million shares at a cost of $233 million. In total, since the beginning of the year, Biogen Idec has purchased 36.0 million shares for a total cost of $1.8 billion. Biogen Idec's fully-diluted weighted average shares outstanding were approximately 262 million for the second quarter.
Biogen Idec also revised its 2010 financial guidance. This guidance consists of the following components:
Biogen Idec may incur charges, realize gains or experience other events in 2010 that could cause actual results to vary from this guidance. This guidance excludes any significant business development activities.
Conference Call and Webcast
Biogen Idec's earnings conference call for the second quarter will be broadcast via the Internet at 8:30 a.m. ET on July 20, 2010, and will be accessible through the Investors section of 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 through August 20, 2010.
About Biogen Idec
Biogen Idec creates new standards of care in therapeutic areas with high unmet medical needs. Founded in 1978, Biogen Idec is a global leader in the discovery, development, manufacturing, and commercialization of innovative therapies. Patients worldwide 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 forward-looking statements may be accompanied by such words as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “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, RITUXAN and TYSABRI, the importance of TYSABRI's sales growth, competitive pressures, uncertainty of success in commercializing other products, the occurrence of adverse safety events with our products, 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, charges and other costs relating to our properties, fluctuations in our effective tax rate, our ability to attract and retain qualified personnel, market and economic conditions, the risks of doing business internationally, our ability to protect our intellectual property rights and the cost of doing so, proxy contests and representation of activist shareholders on our board of directors, product liability claims, fluctuations in our operating results, 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 the Risk Factors section of our most recent annual or quarterly report and in other reports we have filed 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, 2010|
|Consolidated Statements of Income|
|(in thousands, except per share amounts)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Unconsolidated joint business||306,371||275,570||561,300||554,388|
|COST AND EXPENSES|
|Cost of sales, excluding amortization of acquired intangibles||106,985||90,721||204,040||188,918|
|Research and development||331,675||416,453||638,705||695,931|
|Selling, general and administrative||262,322||220,829||510,987||442,660|
|Collaboration profit sharing||62,692||49,138||126,249||91,911|
|Amortization of acquired intangible assets||53,148||93,234||102,037||182,482|
|Acquired in-process research and development||-||-||39,976||-|
|Total cost and expenses||816,822||870,375||1,621,994||1,601,902|
|Income from operations||395,880||222,914||699,568||527,872|
|Other income (expense), net||1,012||14,680||(7,373||)||21,526|
|INCOME BEFORE INCOME TAX EXPENSE||396,892||237,594||692,195||549,398|
|Income tax expense||102,243||92,709||177,553||157,934|
|Net income attributable to noncontrolling interest, net of tax||1,211||2,040||3,762||4,632|
|NET INCOME ATTRIBUTABLE TO BIOGEN IDEC INC.||$||293,438||$||142,845||$||510,880||$||386,832|
|BASIC EARNINGS PER SHARE||$||1.13||$||0.49||$||1.92||$||1.34|
|DILUTED EARNINGS PER SHARE||$||1.12||$||0.49||$||1.91||$||1.33|
|WEIGHTED-AVERAGE SHARES USED IN CALCULATING:|
|BASIC EARNINGS PER SHARE||259,938||288,615||265,018||288,162|
|DILUTED EARNINGS PER SHARE||261,658||290,359||267,272||290,014|
|Biogen Idec Inc.|
|June 30, 2010|
|Condensed Consolidated Balance Sheets|
|June 30,||December 31,|
|Cash, cash equivalents and marketable securities||$||969,672||$||1,263,724|
|Accounts receivable, net||548,893||551,208|
|Other current assets||468,788||371,713|
|Total current assets||2,255,231||2,480,595|
Posted: July 2010