01—Abstract
Summary
Summary of the 10-K filed February 3, 2012. Cited figures are marked; the original filing is the authoritative source.
Biogen Idec reported total revenues of $5.05 billiona for the year ended December 31, 2011, representing a 7.0% increase compared to the previous year.
This growth was primarily driven by strong performance in AVONEX and TYSABRI, which saw revenue increases of 6.7% and 19.9% respectively. TYSABRI's strong growth, in particular, highlights its increasing importance to the company's financial health, despite ongoing concerns regarding its safety profile and the associated risk management programs. The company also saw a 22.8% increase in net income attributable to Biogen Idec Inc., reaching $1.23 billionb, or $5.04 per diluted share.
Looking ahead, Biogen Idec's long-term success hinges on the continued sales of its key products and the successful development and commercialization of its pipeline candidates, notably BG-12 for multiple sclerosis. The company's investment in research and development remains substantial, underscoring its commitment to innovation. However, investors should remain mindful of the competitive landscape, potential regulatory hurdles, and the company's dependence on a few core products, as highlighted in the risk factors.
02—Key points
Key Highlights
- Total revenues reached $5.05 billion in 2011, up 7.0% year-over-year.
- AVONEX revenues increased by 6.7% to $2.69 billion, driven by price increases in the U.S. and demand growth outside the U.S.
- TYSABRI revenues surged by 19.9% to $1.08 billion, reflecting increased commercial demand and pricing.
- Net income attributable to Biogen Idec Inc. grew by 22.8% to $1.23 billion, or $5.04 per diluted share.
- The company is preparing regulatory submissions for BG-12, an oral treatment for relapsing multiple sclerosis, following positive Phase 3 trial results.
- Research and development expenses were $1.22 billion, a slight decrease from the prior year, reflecting a strategic realignment of resources.
- The company's cash, cash equivalents, and marketable securities totaled $3.11 billion as of December 31, 2011, providing significant financial flexibility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Biogen Inc. kept $0.24.
- Revenue$5.05B100.0%
- Cost of revenue−$466.7M9.2%
- Gross profit$4.58B90.8%
- Operating costs−$2.86B56.6%
- Operating income$1.72B34.2%
- Interest, other & tax−$490.3M9.7%
- Net income$1.23B24.5%
Where FY2011 revenue went
$5.05B- Net income: $1.23B, 24% of revenue
- R&D: $1.22B, 24% of revenue
- SG&A: $1.06B, 21% of revenue
- Cost of revenue: $466.8M, 9.2% of revenue
- Other operating costs: $581.4M, 12% of revenue
- Interest, other & tax: $490.3M, 9.7% of revenue
Kept 24% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 3, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $5.05B$4.72B | +7.0% |
| Cost of Revenue | $466.78M$400.26M | +16.6% |
| Gross Profit | $4.58B$4.32B | +6.2% |
| R&D Expenses | $1.22B$1.25B | −2.3% |
| SG&A Expenses | $1.06B$1.03B | +2.4% |
| Operating Expenses | $3.32B$3.47B | −4.1% |
| Operating Income | $1.72B$1.25B | +38.1% |
| Interest Expense | $33.00M$36.10M | −8.6% |
| Net Income | $1.23B$1.01B | +22.8% |
| EPS (Basic) | $5.09$3.98 | +27.9% |
| EPS (Diluted) | $5.04$3.94 | +27.9% |
| Shares Outstanding (Basic) | 242.40M252.31M | −3.9% |
| Shares Outstanding (Diluted) | 245.03M254.87M | −3.9% |
05—Questions
Frequently Asked Questions
What were Biogen Idec's key revenue drivers in 2011?
Biogen Idec's primary revenue drivers in 2011 were its multiple sclerosis (MS) therapies, AVONEX and TYSABRI, which generated $2.69 billion and $1.08 billion in revenues, respectively. The company also generated significant revenue from RITUXAN through its joint business with Genentech, contributing $996.6 million.
What are the major risks facing Biogen Idec based on this filing?
Biogen Idec is substantially dependent on revenues from its three principal products: AVONEX, TYSABRI, and RITUXAN. Any negative developments related to these products, such as safety issues, increased competition (including biosimilars), or adverse regulatory actions, could significantly impact revenues. Furthermore, TYSABRI's sales growth is critical, but is subject to significant safety warnings, including the risk of progressive multifocal leukoencephalopathy (PML), which could limit its market potential.
What are Biogen Idec's key developments in its product pipeline?
A significant development is the positive top-line results from the Phase 3 trials for BG-12, an oral compound for relapsing multiple sclerosis. The company is preparing regulatory submissions for BG-12. Other key late-stage pipeline candidates include Daclizumab for MS, Factor VIII and IX for hemophilia, and dexpramipexole for ALS.
How does Biogen Idec manage its international operations and currency risk?
Biogen Idec conducts business globally and is therefore subject to foreign currency exchange rate fluctuations. The company uses foreign currency forward contracts to manage this risk, primarily by hedging forecasted international revenues denominated in foreign currencies. These hedging activities are intended to mitigate, over time, the impact of currency volatility on net income and earnings per share.
06—Continue