01—Abstract
Summary
Summary of the 10-K filed February 9, 2010. Cited figures are marked; the original filing is the authoritative source.
Biogen Idec Inc. (BIIB) reported robust revenue growth in 2009, primarily driven by strong performance from its key products AVONEX and TYSABRI, alongside contributions from RITUXAN.
Total revenues reached $4.38 billiona, with net income attributable to Biogen Idec Inc. increasing by a significant 23.9% to $970.1 million. The company demonstrated substantial investment in research and development, with R&D expenses rising by nearly 20% to $1.28 billion, reflecting its commitment to pipeline advancement in neurology, oncology, and immunology. Financially, Biogen Idec maintained a strong liquidity position with approximately $2.46 billion in cash, cash equivalents, and marketable securities.
The company also actively returned capital to shareholders through share repurchases, totaling $751.2 millionb in 2009 under its repurchase programs. Management highlighted continued growth expectations for TYSABRI and AVONEX, while also navigating competitive pressures and regulatory developments in the biotechnology sector. The company announced a CEO transition, with the current CEO set to retire in June 2010, and initiated a search for a successor.
02—Key points
Key Highlights
- Total revenues increased by 6.8% to $4.38 billion in 2009.
- Net income attributable to Biogen Idec Inc. grew by 23.9% to $970.1 million.
- AVONEX revenues increased 5.5% to $2.32 billion, and TYSABRI revenues surged 31.8% to $776.0 million.
- Research and development expenses increased 19.7% to $1.28 billion, indicating continued investment in pipeline development.
- The company generated $1.07 billion in cash flow from operations.
- Biogen Idec repurchased $751.2 million of its common stock in 2009.
- CEO James C. Mullen announced his retirement, effective June 8, 2010.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Biogen Inc. kept $0.22.
- Revenue$4.38B100.0%
- Cost of revenue−$382.1M8.7%
- Gross profit$4.00B91.3%
- Operating costs−$2.70B61.7%
- Operating income$1.30B29.6%
- Interest, other & tax−$325.3M7.4%
- Net income$970.1M22.2%
Where FY2009 revenue went
$4.38B- R&D: $1.28B, 29% of revenue
- Net income: $970.1M, 22% of revenue
- SG&A: $911.0M, 21% of revenue
- Cost of revenue: $382.1M, 8.7% of revenue
- Other operating costs: $505.7M, 12% of revenue
- Interest, other & tax: $325.3M, 7.4% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 9, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $4.38B$4.10B | +6.8% |
| Cost of Revenue | $382.10M$401.99M | −4.9% |
| Gross Profit | $4.00B$3.70B | +8.1% |
| R&D Expenses | $1.28B$1.07B | +19.7% |
| SG&A Expenses | $911.03M$925.30M | −1.5% |
| Operating Expenses | $3.08B$2.88B | +6.9% |
| Operating Income | $1.30B$1.21B | +6.7% |
| Interest Expense | $35.80M$52.00M | −31.2% |
| Net Income | $970.13M$783.17M | +23.9% |
| EPS (Basic) | $3.37$2.67 | +26.2% |
| EPS (Diluted) | $3.35$2.65 | +26.4% |
| Shares Outstanding (Basic) | 287.36M292.33M | −1.7% |
| Shares Outstanding (Diluted) | 289.48M294.98M | −1.9% |
05—Questions
Frequently Asked Questions
What were Biogen Idec's key revenue drivers in 2009?
Biogen Idec's revenue growth in 2009 was primarily driven by increases in worldwide AVONEX revenues (up 5.5% to $2.32 billion) and continued strong growth for TYSABRI (up 31.8% to $776.0 million). Revenue from RITUXAN also contributed significantly, with Biogen's share of revenue totaling $1.09 billion.
How much did Biogen Idec invest in research and development (R&D)?
Biogen Idec significantly increased its R&D spending by 19.7% to $1.28 billion in 2009. This investment reflects the company's focus on advancing its pipeline of novel therapeutics, particularly in its core areas of neurology, oncology, and immunology.
What is the company's financial position regarding cash and debt?
As of December 31, 2009, Biogen Idec maintained a strong financial position with approximately $2.46 billion in cash, cash equivalents, and marketable securities. Total borrowings remained stable at around $1.1 billion. The company generated substantial operating cash flow and has adequate resources to fund its operations and strategic initiatives.
Are there any significant leadership changes expected?
Yes, Biogen Idec announced that its President and CEO, James C. Mullen, will retire on June 8, 2010. The company has initiated a search for his successor.
06—Continue