8-KOther Events

BIOGEN INC. 8-K Report (Nov 21, 2003)

Filed November 21, 2003For Securities:BIIB

Summary

Biogen Idec Inc. (BIIB) filed an 8-K on November 21, 2003, primarily to report a change in its certifying accountant. The company's Board of Directors, upon the recommendation of its audit committee, appointed PricewaterhouseCoopers LLP (PwC) as its new independent accountant and dismissed KPMG LLP (KPMG). This change follows the completion of the merger between Biogen, Inc. and the Registrant (presumably Idec Pharmaceuticals Corporation, forming Biogen Idec) on November 12, 2003, where PwC was the auditor for the pre-merger Biogen. The filing explicitly states that KPMG's reports on Biogen Idec's financial statements for fiscal years 2001 and 2002 were without adverse opinions or qualifications. Furthermore, there were no disagreements or "reportable events" with KPMG during the relevant periods that would be of concern to investors. Biogen Idec also confirmed that it had not consulted with PwC on any matters prior to their appointment that would necessitate disclosure under Regulation S-K. This transition in auditors appears to be a procedural step linked to the significant corporate event of the merger.

Key Highlights

  • 1Biogen Idec Inc. has appointed PricewaterhouseCoopers LLP (PwC) as its new independent accountant.
  • 2KPMG LLP has been dismissed as the company's independent accountant.
  • 3The change in auditors is directly related to the recent merger of Biogen, Inc. and the Registrant, which closed on November 12, 2003.
  • 4PwC was the independent accountant for Biogen, Inc. prior to the merger.
  • 5The company reported no disagreements with KPMG on any accounting, disclosure, or auditing matters.
  • 6There were no 'reportable events' involving KPMG during the specified periods.
  • 7The company confirmed no prior consultation with PwC regarding matters requiring disclosure under Regulation S-K.

Frequently Asked Questions

Biogen Idec changed its independent accountant as a direct result of the merger between Biogen, Inc. and the Registrant, which was completed on November 12, 2003. PricewaterhouseCoopers LLP was the auditor for Biogen, Inc., and the company appointed them as the new independent accountant for the combined entity.

No, the filing explicitly states that there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. KPMG's past audit reports were also free of adverse opinions or qualifications.

This change is primarily a procedural step following the significant merger. Investors should view it as a transition to align the auditing firm for the newly combined company, rather than an indication of underlying financial reporting issues. PwC will now be responsible for auditing the financial statements of the combined Biogen Idec entity.

Based on the information provided in this 8-K, the change in auditor is not a cause for concern. The company has clearly stated the reason is the merger and confirmed there were no disputes or issues with the former auditor, KPMG.