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BIOGEN INC. Annual Report, Year Ended Dec 31, 1999

Filing Date
Filed March 30, 2000
Period End
December 31, 1999
Security
BIIB
In the record · 2016–202610-K1110-Q328-K112

BIIB filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 112 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Feb ’17Feb ’17
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Mar ’23Mar ’23
  4. FY2024 annual report10-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K filed March 30, 2000. Cited figures are marked; the original filing is the authoritative source.

IDEC Pharmaceuticals Corporation, now Biogen Inc., reported 1999 total revenues of $118.0 milliona, up from $87.0 million in 1998, and net income of $43.2 million, or $0.86 per diluted share, compared with $21.5 million in 1998.

Revenue growth was driven mainly by revenues from unconsolidated joint business, which rose to $93.2 millionb from $53.8 million, reflecting the commercialization of Rituxan through its copromotion arrangement with Genentech. Rituxan U.S. net sales by Genentech were $262.7 million in 1999, a 73% increase over $152.1 million in 1998. The company's income from operations was $41.4 million, and it ended 1999 with $246.3 million in cash, cash equivalents and securities available-for-sale, up from $73.5 million a year earlier, after raising about $112.7 million net from zero coupon convertible notes in February 1999.

The company's revenue remains heavily concentrated in a single product. The filing states that approximately 79%c of 1999 total revenues were derived from its collaboration and joint business arrangement with Genentech. The company transferred all bulk Rituxan manufacturing to Genentech in September 1999, which the filing says will reduce manufacturing revenue and costs going forward.

Its lead pipeline product, ZEVALIN, completed patient accrual in two pivotal Phase III studies, and a Biologics License Application is expected to be submitted in the fourth quarter of 2000, subject to FDA approval. Other candidates include IDEC-114 in psoriasis, IDEC-131 in SLE, and IDEC-152 in allergic asthma, all in clinical development. The filing also highlights risk factors investors should weigh.

These include dependence on Rituxan sales, uncertain clinical trial outcomes, reliance on third-party manufacturers and suppliers, and a patent interference proceeding relating to anti-CD40L antibodies. The company stated it was not a party to any material legal proceedings. Its 2019 zero coupon notes carry a $345.0 milliond face value, and holders may require repurchase on February 16, 2004, 2009 or 2014.

02—Key points

Key Highlights

  1. Total revenues rose to $118.0 million in 1999 from $87.0 million in 1998.
  2. Net income was $43.2 million, or $0.86 per diluted share, versus $21.5 million in 1998.
  3. Revenues from unconsolidated joint business, mainly Rituxan copromotion profits, increased to $93.2 million from $53.8 million.
  4. Rituxan U.S. net sales by Genentech reached $262.7 million in 1999, up 73% from $152.1 million in 1998.
  5. Cash, cash equivalents and securities available-for-sale totaled $246.3 million at December 31, 1999, up from $73.5 million.
  6. Approximately 79% of 1999 total revenues came from the Genentech collaboration and joint business arrangement.
  7. ZEVALIN completed patient accrual in two pivotal Phase III studies, with a BLA anticipated in Q4 2000.

03—Questions

Frequently Asked Questions

  1. What drove the company's revenue growth in 1999?

    The increase was driven mainly by revenues from unconsolidated joint business, which rose to $93.2 million from $53.8 million. This reflects the U.S. commercialization of Rituxan through the copromotion arrangement with Genentech, including the company's share of pretax copromotion profits of $67.6 million.

  2. How dependent is the company on Rituxan?

    Heavily. The filing states that revenues depend largely on continued U.S. sales of Rituxan, and that approximately 79% of 1999 total revenues were derived from the Genentech collaboration and joint business arrangement. Rituxan is the only commercialized product.

  3. What is the status of ZEVALIN?

    The company has completed patient accrual for two multi-center pivotal Phase III studies of ZEVALIN in low-grade and/or follicular NHL. It expects to submit a Biologics License Application during the fourth quarter of 2000. Schering AG holds exclusive rights outside the United States.

  4. What were the company's key financing activities in 1999?

    In February 1999 the company sold zero coupon subordinated convertible notes, raising about $112.7 million net of $3.9 million in underwriting commissions and expenses. The notes have a face value of $345.0 million at maturity in 2019, and holders may require repurchase on February 16, 2004, 2009 or 2014.

  5. What are the main risks flagged in the filing?

    Key risks include reliance on Rituxan sales, uncertain clinical trial results, dependence on Genentech for all Rituxan manufacturing, reliance on contract manufacturers and sole-source suppliers, competition, and patent interference and opposition proceedings relating to anti-CD40L antibodies. The filing also notes a Glaxo Wellcome patent suit against Genentech that could affect Rituxan copromotion profits.

04—Continue

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