10-QPeriod: Q1 FY2011

BIOGEN INC. Quarterly Report for Q1 Ended Mar 31, 2011

Filed April 21, 2011For Securities:BIIB

Summary

Biogen Idec reported solid financial results for the first quarter of 2011, with total revenues reaching $1.203 billion, an 8.5% increase year-over-year. This growth was primarily driven by strong performance in AVONEX and TYSABRI, which saw revenue increases of 8.4% and 15.0%, respectively. Income from operations also saw a significant jump of 37.1%, reaching $416.3 million, alongside a 35.4% increase in net income to $294.3 million. Diluted EPS grew by a substantial 50.4% to $1.20. The company continues to navigate a competitive landscape, with ongoing efforts to manage costs and advance its pipeline, notably the investigational oral compound BG-12 for multiple sclerosis. Strategic restructuring initiatives are expected to yield significant annual operating expense savings starting in the second half of 2011. Biogen Idec also maintained a strong liquidity position, with $2.114 billion in cash and cash equivalents and marketable securities, and initiated a new share repurchase program.

Financial Highlights

53 data points
Beta

Revenue

$1.20B

91.4% Gross Margin

Net Income

$294.30M

24.5% Net Margin

EPS (Diluted)

$1.20

Total Assets

$8.29B

Cash & Equivalents

$790.67M

Free Cash Flow

$221.44M

Financial Statements
Beta
Revenue$1.20B
Cost of Revenue$103.11M
Gross Profit$1.10B
R&D Expenses$293.63M
SG&A Expenses$244.52M
Operating Expenses$787.06M
Operating Income$416.28M
Interest Expense$9.20M
Net Income$294.30M
EPS (Basic)$1.22
EPS (Diluted)$1.20
Shares Outstanding (Basic)241.54M
Shares Outstanding (Diluted)244.55M

Key Highlights

  • 1Total revenues increased by 8.5% to $1.203 billion in Q1 2011 compared to Q1 2010.
  • 2AVONEX revenues grew 8.4% to $642.5 million, driven by price increases and volume growth in the rest of the world.
  • 3TYSABRI revenues increased by 15.0% to $251.4 million, fueled by higher commercial demand and price increases in the U.S.
  • 4RITUXAN's share of co-promotion profits in the U.S. grew by 10.8% to $221.9 million, despite challenges in the rest of world markets.
  • 5Net income increased by 35.4% to $294.3 million, with diluted EPS rising 50.4% to $1.20.
  • 6The company initiated a restructuring program aimed at achieving $300 million in annual operating expense savings by the second half of 2011.
  • 7Cash and cash equivalents and marketable securities totaled $2.114 billion as of March 31, 2011, providing substantial liquidity.

Frequently Asked Questions

Revenue growth was primarily driven by strong performances from AVONEX and TYSABRI. AVONEX saw an 8.4% increase due to price adjustments and higher demand outside the U.S., while TYSABRI experienced a 15.0% increase driven by rising demand and pricing in the U.S. and internationally.

Biogen Idec announced positive top-line results from its first pivotal Phase 3 trial (DEFINE) for BG-12 as a treatment for relapsing-remitting multiple sclerosis. A second Phase 3 trial (CONFIRM) is ongoing, with results expected in the latter half of 2011. The FDA had rescinded its fast track designation due to market availability of another oral MS treatment.

Biogen Idec is implementing strategic, operational, and organizational initiatives announced in November 2010. These include workforce reductions and facility consolidations, which are part of a restructuring program expected to yield approximately $300 million in annual operating expense savings starting in the second half of 2011. Research and development and selling, general, and administrative expenses decreased by 4.4% and 1.7%, respectively, in Q1 2011 compared to the prior year.

The company ended the quarter with $2.114 billion in cash and cash equivalents and marketable securities, indicating strong liquidity. Biogen Idec also authorized a new share repurchase program of up to 20 million shares, primarily to offset stock issuances from compensation plans, and repurchased approximately 2.8 million shares in Q1 2011.