10-QPeriod: Q2 FY2010

BIOGEN INC. Quarterly Report for Q2 Ended Jun 30, 2010

Filed July 20, 2010For Securities:BIIB

Summary

Biogen Idec reported strong financial performance for the second quarter and first half of 2010, driven by robust sales of its key products AVONEX, RITUXAN, and TYSABRI. Total revenues increased by 10.9% year-over-year to $1.21 billion for the quarter, with net income attributable to Biogen Idec more than doubling to $293.4 million. Diluted earnings per share also saw significant growth, rising to $1.12 from $0.49 in the prior year period. The company highlighted increased revenues from AVONEX (up 6.3%), continued strong growth for TYSABRI (up 16.8%), and a solid performance from RITUXAN (up 11.2%). Cost and expense management also contributed positively, with total costs and expenses decreasing by 6.2%, largely due to reduced R&D spending and amortization. Biogen Idec also actively returned capital to shareholders, repurchasing approximately $1.0 billion of its common stock during the quarter under a new $1.5 billion authorization. Looking ahead, Biogen Idec's revenue growth is expected to continue being driven by its established products, alongside the ongoing development and potential launch of new therapies. However, the company faces increasing competition in the multiple sclerosis market and ongoing scrutiny and regulatory updates regarding TYSABRI's safety profile, which could impact future sales.

Financial Highlights

54 data points
Beta

Revenue

$1.21B

91.2% Gross Margin

Net Income

$293.40M

24.2% Net Margin

EPS (Diluted)

$1.12

Total Assets

$7.50B

Cash & Equivalents

$720.96M

Free Cash Flow

$381.43M

Financial Statements
Beta
Revenue$1.21B
Cost of Revenue$106.98M
Gross Profit$1.11B
R&D Expenses$331.68M
SG&A Expenses$262.32M
Operating Expenses$816.82M
Operating Income$395.88M
Interest Expense$9.00M
Net Income$293.40M
EPS (Basic)$1.13
EPS (Diluted)$1.12
Shares Outstanding (Basic)259.94M
Shares Outstanding (Diluted)261.66M

Key Highlights

  • 1Total revenues increased 10.9% to $1.21 billion for Q2 2010.
  • 2Net income attributable to Biogen Idec more than doubled to $293.4 million for Q2 2010.
  • 3Diluted EPS grew significantly to $1.12 from $0.49 in Q2 2009.
  • 4Key products AVONEX, RITUXAN, and TYSABRI showed strong revenue growth: AVONEX +6.3%, RITUXAN +11.2%, and TYSABRI +16.8%.
  • 5Total costs and expenses decreased by 6.2% due to reduced R&D and amortization expenses.
  • 6The company repurchased approximately $1.0 billion of its common stock in Q2 2010 under a new $1.5 billion authorization.
  • 7Cash and cash equivalents and marketable securities stood at approximately $1.54 billion as of June 30, 2010.

Frequently Asked Questions

Revenue growth was primarily driven by increased worldwide sales of AVONEX (up 6.3%), continued strong growth in TYSABRI (up 16.8%), and increased sales of RITUXAN (up 11.2%).

Total costs and expenses decreased by 6.2% year-over-year. This was mainly due to a significant reduction in research and development expenses (down 20.4%) and a decrease in amortization of acquired intangible assets (down 43.0%).

Biogen Idec announced a new authorization to repurchase up to $1.5 billion of its common stock in April 2010. During the second quarter, the company repurchased approximately $1.0 billion of its stock under this program, retiring the shares.

TYSABRI continues to show strong revenue growth driven by increased patient usage. However, the company acknowledges the significant safety warnings, including the risk of PML, and ongoing label updates. Biogen Idec is actively researching protocols to mitigate risks and improve patient outcomes, including developing a JC virus antibody assay. These efforts, while aimed at improving patient safety, may have a short-term impact on prescribing behavior and product revenues.