10-KPeriod: FY2013

BIOGEN INC. Annual Report, Year Ended Dec 31, 2013

Filed February 6, 2014For Securities:BIIB

Summary

Biogen Idec reported strong revenue growth in 2013, driven significantly by the launch of TECFIDERA and the full acquisition of TYSABRI rights. Total revenues increased by 25.7% to $6.93 billion, with product revenues alone growing by 33.0% to $5.54 billion. This growth was primarily fueled by TECFIDERA's successful launch in the US, generating $876.1 million in its first year, and a substantial 34.4% increase in TYSABRI revenue to $1.53 billion, boosted by the acquisition of full ownership rights. AVONEX continued to show modest growth, with revenues up 3.2% to $3.01 billion, though facing increased competition. The company's R&D investments remained robust, indicating a continued focus on pipeline development, particularly in multiple sclerosis and hemophilia. The company ended the year with a strong cash position, though it was reduced by the significant TYSABRI acquisition. Investors should note the strong performance of new products like TECFIDERA and the strategic importance of the TYSABRI acquisition. While AVONEX remains a key revenue driver, the company is actively managing the competitive landscape in the multiple sclerosis market by introducing new therapies. The significant R&D spend highlights Biogen Idec's commitment to future growth through innovation.

Financial Highlights

55 data points
Beta

Revenue

$6.93B

87.6% Gross Margin

Net Income

$1.86B

26.9% Net Margin

EPS (Diluted)

$7.81

Total Assets

$11.86B

Cash & Equivalents

$602.60M

Free Cash Flow

$2.10B

Financial Statements
Beta
Revenue$6.93B
Cost of Revenue$857.70M
Gross Profit$6.07B
SG&A Expenses$1.71B
Operating Expenses$4.44B
Operating Income$2.52B
Interest Expense$31.90M
Net Income$1.86B
EPS (Basic)$7.86
EPS (Diluted)$7.81
Shares Outstanding (Basic)236.90M
Shares Outstanding (Diluted)238.30M

Key Highlights

  • 1Total revenues increased by 25.7% to $6.93 billion in 2013.
  • 2Product revenues grew by 33.0% to $5.54 billion, driven by TECFIDERA's launch and the TYSABRI acquisition.
  • 3TECFIDERA, launched in March 2013, generated $876.1 million in revenue.
  • 4TYSABRI revenue increased by 34.4% to $1.53 billion following Biogen Idec's acquisition of full ownership rights.
  • 5AVONEX revenue grew 3.2% to $3.01 billion, demonstrating continued strength despite increasing competition.
  • 6Research and development expenses increased by 8.2% to $1.44 billion, reflecting ongoing investment in the pipeline.
  • 7Cash, cash equivalents, and marketable securities decreased by 50.6% to $1.85 billion due to the TYSABRI acquisition and debt repayment.

Frequently Asked Questions

The primary drivers of Biogen Idec's revenue growth in 2013 were the successful commercial launch of TECFIDERA in the U.S. and the acquisition of full ownership rights for TYSABRI from Elan. These factors, combined with steady performance from AVONEX, significantly boosted overall revenue.

The acquisition of TYSABRI rights in April 2013 allowed Biogen Idec to recognize 100% of TYSABRI's U.S. revenues, contributing significantly to the 34.4% increase in TYSABRI sales. This acquisition also impacted cash reserves and led to increased amortization of acquired intangible assets.

Biogen Idec is actively managing its MS portfolio by leveraging its established products like AVONEX and TYSABRI, while also introducing new therapies such as TECFIDERA. The company is also advancing its pipeline with candidates like PLEGRIDY, aiming to offer a range of treatment options to address different patient needs and market segments within the MS therapeutic area.

Biogen Idec significantly invests in R&D, with expenditures increasing by 8.2% in 2013. Investments are directed towards late-stage programs (like hemophilia candidates ELOCTATE and ALPROLIX), early-stage programs (including those for neurological disorders), and ongoing research and discovery. The company's pipeline demonstrates a continued commitment to innovation in areas like MS, neurodegenerative diseases, and hemophilia.