Reported Full Year Earnings Per Share Now $1.31; Operating Earnings
Per Share of $1.59
Update:
-- U.S Court of Appeals decision handed down January 31, 2003.
* The January 2002 settlement between Biogen and Berlex Laboratories
provides for $55 million final cash payment from Biogen to Berlex
upon the Court's decision.
* Generally Accepted Accounting Principles (GAAP) requires adjustment
to the financial statements for certain events occurring subsequent
to the original earnings release and prior to the release of audited
financial statements in the Form 10-K for the fiscal year ended
December 31, 2002.
-- Reported fourth quarter 2002 earnings per share updated to $0.27;
operating earnings per share of $0.43.
CAMBRIDGE, Mass., Feb. 14 /PRNewswire-FirstCall/ --
Biogen, Inc. (Nasdaq: BGEN) today reported a charge of $55 million to the
fourth quarter of 2002 to reflect the final settlement of the Berlex
litigation. As required by U.S. GAAP, the $55 million adjusts the earnings for
the fourth quarter and full year 2002 results.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO )
Net income for 2002 is now $199 million, or $1.31 per share, which
included $0.28 per share of net non-operating or unusual charges. Excluding
these charges, 2002 operating earnings were $242 million, or $1.59 operating
earnings per share. See attached tables for a reconciliation of reported
earnings (GAAP) to operating earnings (Non-GAAP).
The charge of $55 million is reflected in other income (expense), net in
the fourth quarter of 2002 as settlement of litigation. Net income for the
fourth quarter 2002 is now $41 million, or $0.27 per share, which included
$0.16 per share of net non-operating or unusual charges. Excluding these
charges, the fourth quarter 2002 operating earnings were $65 million, or $0.43
operating earnings per share compared to $0.48 operating earnings per share
for the same period last year.
About Biogen
Biogen is the world's oldest independent biotechnology company and a
leader in biologics research, development and manufacturing. A pioneer in
leading edge research in immunology, neurobiology and oncology, Biogen brings
novel therapies to improve patients' lives around the world through its global
marketing capabilities. For press releases and additional information about
the company, please visit http://www.biogen.com.
Media Contact:
Tim Hunt
Director, Public Affairs
Biogen, Inc.
Tel: (617) 914-6524
Investment Community Contact:
Elizabeth Woo
Senior Director, Investor Relations
Biogen, Inc.
Tel: (617) 679-2812
TABLE #1
Financial Results For The Fourth Quarter and Full Year of 2002
Condensed Consolidated Statements Of Income
(in thousands, except per share amounts)
Three Months Ended Full Year Ended
December 31, December 31,
2002 2001 2002 2001
REVENUES
Product $256,267 $259,302 $1,034,357 $970,546
Royalties 46,163 21,281 114,007 71,766
Total Revenues 302,430 280,583 1,148,364 1,042,312
COST AND EXPENSES
Cost of revenues 42,582 35,704 160,159 136,510
Research and development 91,201 83,773 367,567 314,556
Selling, general and
administrative 86,398 68,142 324,001 231,048
Total Cost and Expenses 220,181 187,619 851,727 682,114
Income from Operations 82,249 92,964 296,637 360,198
Other income (expense), net (24,715) (8,844) (20,042) 29,299
INCOME BEFORE INCOME TAXES 57,534 84,120 276,595 389,497
Income Taxes 16,110 25,235 77,447 116,814
NET INCOME $41,424 $58,885 $199,148 $272,683
BASIC EARNINGS PER SHARE $0.28 $0.40 $1.33 $1.84
DILUTED EARNINGS PER SHARE $0.27 $0.39 $1.31 $1.78
SHARES USED IN CALCULATING:
BASIC EARNINGS PER SHARE 149,937 148,218 149,337 148,355
DILUTED EARNINGS PER SHARE 152,089 152,198 151,930 152,916
TABLE #2
Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, 2002 Dec. 31, 2001
ASSETS
Current Assets
Cash and marketable securities $867,109 $798,107
Accounts receivable, net 171,067 177,582
Other current assets 177,848 122,038
Total current assets 1,216,024 1,097,727
Property and equipment, net 738,059 555,998
Other assets 52,905 67,321
$2,006,988 $1,721,046
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $326,333 $294,942
Long term debt & liabilities 85,234 77,272
Shareholders' equity 1,595,421 1,348,832
$2,006,988 $1,721,046
TABLE #3
Financial Results for the Fourth Quarter of 2002
Operating Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
The non-GAAP financial measure presented below is utilized by Biogen
management to gain an understanding of the comparative operating performance
of the Company. This non-GAAP financial measure may be useful in excluding
those non-operational or unusual activities or transactions that are not
necessarily relevant to obtaining an understanding of the trends of the
Company or the prospects of future performance.
Three Months Ended December 31,
2002 (a) 2001 (b)
Operating Operating
Reported Adjustments Results Reported Adjustments Results
REVENUES
Product $256,267 $256,267 $259,302 $259,302
Royalties 46,163 46,163 21,281 21,281
Total
Revenues 302,430 302,430 280,583 280,583
COST AND
EXPENSES
Cost of
revenues 42,582 42,582 35,704 35,704
Research and
development 91,201 91,201 83,773 83,773
Selling,
general and
administrative 86,398 86,398 68,142 68,142
Total Cost
and Expenses 220,181 220,181 187,619 187,619
Income from
Operations 82,249 82,249 92,964 92,964
Other income
(expense),
net (24,715) 32,754 8,039 (8,844) 20,100 11,256
INCOME BEFORE
INCOME TAXES 57,534 32,754 90,288 84,120 20,100 104,220
Income Taxes 16,110 9,171 25,281 25,235 6,030 31,265
NET INCOME $41,424 $23,583 $65,007 $58,885 $14,070 $72,955
BASIC
EARNINGS
PER SHARE $0.28 $0.16 $0.43 $0.40 $0.09 $0.49
DILUTED
EARNINGS
PER SHARE $0.27 $0.16 $0.43 $0.39 $0.09 $0.48
SHARES USED
IN CALCULATING:
BASIC EARNINGS
PER
SHARE 149,937 149,937 149,937 148,218 148,218 148,218
DILUTED EARNINGS
PER
SHARE 152,089 152,089 152,089 152,198 152,198 152,198
(a) Non-operating adjustments for the fourth quarter of 2002 includes a
net gain of $ 37.2 million from settlement of arbitration with
Schering-Plough, a $55 million charge for the final settlement of the
Berlex litigation, and a $15 million charitable contribution expense
for the establishment of the Biogen Foundation.
(b) Non-operating adjustments for the fourth quarter of 2001 includes net
gains of $ 27.8 million from the sale of marketable securities and
$27.9 million of expense for the write-down of certain marketable
securities and a $20 million charge for the initial settlement of
litigation with Berlex.
TABLE #4
Financial Results for the Full Year of 2002
Operating Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
The non-GAAP financial measure presented below is utilized by Biogen
management to gain an understanding of the comparative operating performance
of the Company. This non-GAAP financial measure may be useful in excluding
those non-operational or unusual activities or transactions that are not
necessarily relevant to obtaining an understanding of the trends of the
Company or the prospects of future performance.
Full Year Ended December 31,
2002 (c) 2001 (d)
Operating Operating
Reported Adjustments Results Reported Adjustments Results
REVENUES
Product $1,034,357 $1,034,357 $970,546 $970,546
Royalties 114,007 114,007 71,766 71,766
Total
Revenues 1,148,364 1,148,364 1,042,312 1,042,312
COST AND
EXPENSES
Cost of
revenues 160,159 160,159 136,510 136,510
Research and
development 367,567 367,567 314,556 (8,000) 306,556
Selling,
general and
administrative 324,001 (5,800) 318,201 231,048 231,048
Total Cost
and Expenses 851,727 (5,800) 845,927 682,114 (8,000) 674,114
Income from
Operations 296,637 5,800 302,437 360,198 8,000 368,198
Other income
(expense),
net (20,042) 53,347 33,305 29,299 17,600 46,899
INCOME BEFORE
INCOME TAXES 276,595 59,147 335,742 389,497 25,600 415,097
Income Taxes 77,447 16,561 94,008 116,814 7,680 124,494
NET INCOME $199,148 $42,586 $241,734 $272,683 $17,920 $290,603
BASIC
EARNINGS
PER SHARE $1.33 $0.29 $1.62 $1.84 $0.12 $1.96
DILUTED
EARNINGS
PER SHARE $1.31 $0.28 $1.59 $1.78 $0.12 $1.90
SHARES USED
IN CALCULATING:
BASIC EARNINGS
PER
SHARE 149,337 149,337 149,337 148,355 148,355 148,355
DILUTED
EARNINGS
PER
SHARE 151,930 151,930 151,930 152,916 152,916 152,916
(c) Non-operating or unusual adjustments for the year ended 2002 includes
a net gain of $ 37.2 million from the settlement of arbitration with
Schering-Plough and a $55 million charge for the final settlement of
the Berlex litigation, a $15 million charitable contribution expense
for the establishment of the Biogen Foundation, a $10.1 million charge
for the write-down of marketable securities, a $10.5 million reserve
for a loan and $5.8 million for severance and post retirement benefits
for the former Chairman.
(d) Non-operating or unusual adjustments for the year ended 2001 include
net gains of $ 30.3 million from the sale of marketable securities and
$27.9 million of expense for the write-down of certain marketable
securities and a $20 million charge for the initial settlement of
litigation with Berlex and an $8 million upfront fee on the Icos
collaboration.
SOURCE Biogen, Inc.
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Related links:
http://www.biogen.com
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CONTACT:
Media: Tim Hunt, Director, Public Affairs,
+1-617-914-6524, or Investment Community: Elizabeth Woo, Senior
Director, Investor Relations, +1-617-679-2812, both of Biogen,
Inc.
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