10-KPeriod: FY2007

BIOGEN INC. Annual Report, Year Ended Dec 31, 2007

Filed February 14, 2008For Securities:BIIB

Summary

Biogen Idec Inc. reported strong revenue growth in 2007, driven by its key products AVONEX and RITUXAN, which together accounted for approximately 88% of total revenues. AVONEX, a treatment for multiple sclerosis, saw a 6.1% increase in U.S. sales and a 14.4% increase in international sales, despite facing growing competition. RITUXAN, used in oncology and rheumatoid arthritis, contributed significantly through a joint business arrangement, with U.S. copromotion profits increasing to $616.8 million and international royalties reaching $250.8 million. The company also highlighted the reintroduction and growing sales of TYSABRI for multiple sclerosis and Crohn's disease, with 2007 sales reaching $229.9 million. The company is also investing heavily in research and development, with expenses increasing to $925.2 million in 2007, focusing on a robust pipeline of late-stage product candidates in neurology, oncology, and immunology. Despite ongoing legal proceedings and the potential for increased competition, Biogen Idec's financial performance in 2007 demonstrated solid operational growth.

Financial Highlights

31 data points
Beta

Revenue

$3.17B

89.4% Gross Margin

Net Income

$638.17M

20.1% Net Margin

EPS (Diluted)

$1.99

Cash & Equivalents

$659.66M

Free Cash Flow

$734.65M

Financial Statements
Beta
Revenue$3.17B
Cost of Revenue$335.19M
Gross Profit$2.84B
R&D Expenses$925.16M
SG&A Expenses$776.10M
Operating Expenses$2.39B
Operating Income$779.77M
Net Income$638.17M
EPS (Basic)$2.02
EPS (Diluted)$1.99
Shares Outstanding (Basic)315.84M
Shares Outstanding (Diluted)320.17M

Key Highlights

  • 1Total revenues increased to $3,171.6 million in 2007.
  • 2AVONEX sales reached $1,867.8 million globally, showing continued growth.
  • 3RITUXAN contributed significantly through a joint business arrangement, with Biogen Idec's share of copromotion profits at $616.8 million.
  • 4TYSABRI sales grew substantially to $229.9 million in 2007, following its reintroduction.
  • 5Research and development expenses increased to $925.2 million, reflecting investment in a broad pipeline.
  • 6The company had $2,115.8 million in cash, cash equivalents, and marketable securities as of December 31, 2007.
  • 7Biogen Idec sold U.S. rights for ZEVALIN in December 2007.

Frequently Asked Questions

Biogen Idec's primary revenue drivers in 2007 were AVONEX, a treatment for multiple sclerosis, and RITUXAN, used in oncology and rheumatoid arthritis. These two products accounted for approximately 88% of the company's total revenues.

TYSABRI was reintroduced in July 2006 for relapsing forms of multiple sclerosis and received FDA approval in January 2008 for Crohn's disease. Sales grew significantly in 2007, reaching $229.9 million.

Biogen Idec is heavily investing in research and development, with expenses increasing to $925.2 million in 2007. The company has a robust pipeline of late-stage product candidates in key therapeutic areas like neurology, oncology, and immunology.

As of December 31, 2007, Biogen Idec had strong liquidity with $2,115.8 million in cash, cash equivalents, and marketable securities. This financial strength supports ongoing operations and R&D investments.