10-QPeriod: Q2 FY2009

BIOGEN INC. Quarterly Report for Q2 Ended Jun 30, 2009

Filed July 17, 2009For Securities:BIIB

Summary

Biogen Idec Inc. reported strong financial results for the second quarter of 2009, with total revenues reaching $1,093.3 million and net income of $142.8 million, or $0.49 per diluted share. This represents a 10.1% increase in revenue compared to the same period in the prior year, driven primarily by robust growth in TYSABRI sales, which generated $187.6 million, and a $64.0 million increase in AVONEX sales. Key drivers of this performance include a 27.4% year-over-year increase in TYSABRI revenues, fueled by higher patient demand in both the US and international markets, and a 12.1% increase in AVONEX revenue, primarily due to price increases in the US and increased patient demand internationally. The company also highlighted its strong liquidity position with $2,670.7 million in cash and marketable securities, providing ample resources for operations, share repurchases, and strategic investments.

Financial Highlights

53 data points
Beta

Revenue

$1.09B

91.7% Gross Margin

Net Income

$142.80M

13.1% Net Margin

EPS (Diluted)

$0.49

Total Assets

$8.78B

Cash & Equivalents

$786.80M

Free Cash Flow

$193.87M

Financial Statements
Beta
Revenue$1.09B
Cost of Revenue$90.72M
Gross Profit$1.00B
R&D Expenses$416.45M
SG&A Expenses$220.83M
Operating Expenses$870.38M
Operating Income$222.91M
Interest Expense$9.30M
Net Income$142.80M
EPS (Basic)$0.49
EPS (Diluted)$0.49
Shares Outstanding (Basic)288.62M
Shares Outstanding (Diluted)290.36M

Key Highlights

  • 1Total revenues for Q2 2009 increased by 10.1% year-over-year to $1,093.3 million.
  • 2Net income for Q2 2009 was $142.8 million, resulting in diluted EPS of $0.49.
  • 3TYSABRI revenue significantly increased by 27.4% to $187.6 million, driven by global patient demand.
  • 4AVONEX revenue grew by 12.1% to $591.2 million, with US sales up 19.7% primarily due to price increases.
  • 5The company maintained a strong liquidity position with $2,670.7 million in cash and marketable securities as of June 30, 2009.
  • 6Biogen Idec entered into a collaboration with Acorda Therapeutics for Fampridine-SR, involving a $110.0 million upfront payment.
  • 7PEGylated interferon beta-1a received Fast Track designation from the FDA for relapsing MS.

Frequently Asked Questions

The primary drivers of revenue growth were the strong performance of TYSABRI, which saw a 27.4% increase in revenue due to higher patient demand, and AVONEX, which increased by 12.1% driven by price increases in the US and rising patient demand internationally. The continued growth from RITUXAN also contributed positively through co-promotion profits.

Biogen Idec reported a robust financial position with $2,670.7 million in cash and marketable securities as of June 30, 2009. The company generated $529.3 million in cash flow from operations during the first six months of 2009 and expects these internal sources, along with existing cash, to be sufficient for current and planned operating requirements, capital expenditures, and debt service.

Biogen Idec announced a significant collaboration with Acorda Therapeutics for Fampridine-SR, involving a substantial upfront payment and potential milestone payments. Additionally, PEGylated interferon beta-1a received FDA Fast Track designation for relapsing MS, indicating potential for expedited review. The company continues to advance its pipeline with 22 products in Phase 2 trials or beyond as of June 30, 2009.