Loss per Share of $4.03 and
Full Year 2003 Loss Per Share of $4.92 Primarily Due to Merger-Related
Accounting Impacts
2003 Revenues Rose 19 Percent (Pro Forma Combined)
Biogen Idec Reaffirms Goal of Achieving an Average of 15 Percent Revenue
Growth and 20 Percent Earnings per Share (Adjusted Pro Forma) Growth through
2007
Biogen Idec Announces 12 Million Share Repurchase Plan Authorized
CAMBRIDGE, Mass., March 2 /PRNewswire-FirstCall/ -- Biogen Idec Inc.
(Nasdaq: BIIB), a global biotechnology leader with top products and
capabilities in oncology and immunology, announced today that adjusted pro
forma earnings per share were $0.24 for the fourth quarter of 2003 and $1.22
for the full year 2003.
Adjusted pro forma earnings per share and net income for the fourth
quarter and full year 2003 include revenues and expenses from the former
Biogen, Inc from January 1 to November 12, 2003 but exclude: (1) certain
merger-related accounting impacts such as write off of acquired in-process
research and development, amortization of intangibles, and inventory step up,
(2) certain merger-related charges, and (3) all other non-operating charges of
former Biogen, Inc and IDEC Pharmaceuticals Corporation during those periods.
These adjustments, expenses, and non-operating charges are itemized on the
attached reconciliation tables.
On a reported basis, calculated in accordance with U.S. generally accepted
accounting principles (GAAP), Biogen Idec reported a loss of $991 million
(or loss per share of $4.03) in the fourth quarter of 2003 and a loss of
$875 million (or loss per share of $4.92) for the full year 2003. The
fourth quarter and full year losses were primarily due to the $823 million
write-off of acquired in-process research and development related to the
merger. GAAP results include the results of operations of former Biogen,
Inc. from November 13, 2003 through December 31, 2003.
"Since the completion of our merger late last year, we've had a string of
successes in our product pipeline," said James Mullen, Biogen Idec's Chief
Executive Officer. "Furthermore, the past four months of operating as one
organization have confirmed the promise of our new company. Biogen Idec is
well positioned to achieve our long-term goal of delivering an average of 15
percent top line and 20 percent bottom line growth through 2007."
Biogen Idec's pro forma combined revenues for 2003 rose 19 percent to
$1.852 billion versus a comparable basis in 2002 of $1.553 billion. Pro forma
combined revenues in the fourth quarter of 2003 increased 15 percent to $491
million versus a comparable basis in 2002 of $426 million.
Product Sales Performance
Revenues from AVONEX(R) (Interferon beta-1a), Biogen Idec's therapy for
patients with relapsing forms of multiple sclerosis (MS), for the fourth
quarter increased 21 percent to $310 million (pro forma combined) from the
fourth quarter of 2002. Full year AVONEX sales were $1.168 billion (pro forma
combined), an increase of 13 percent over the prior year sales. In 2003, U.S.
sales of AVONEX were $800 million and international sales for AVONEX were $368
million (pro forma combined).
AMEVIVE(R) (alefacept), Biogen Idec's treatment for moderate to severe
psoriasis, was approved at the end of January 2003. AMEVIVE sales were $17
million (pro forma combined) in the fourth quarter and $40 million (pro forma
combined) for the full year.
Sales of ZEVALIN(R) (ibritumomab tiuxetan), Biogen Idec's
radioimmunotherapeutic agent, were $4.5 million in the fourth quarter as
compared to $5.5 million for the same period last year. For the full year
2003, ZEVALIN sales were $20 million as compared to $14 million for 2002.
Revenues for the fourth quarter of 2003 included $130 million from our
joint business arrangement with Genentech, Inc. related to RITUXAN(R)
(rituximab), a treatment for certain B-cell non-Hodgkin's lymphomas that
Biogen Idec co-promotes in the U.S. with Genentech, compared to $117 million
for the fourth quarter of 2002. Revenues for the full year 2003 included $493
million from our joint business arrangement with Genentech related to RITUXAN
compared to $386 million for 2002. All U.S. sales of RITUXAN are recognized
by Genentech and we record our share of the pretax copromotion profits on a
quarterly basis. U.S. net sales of RITUXAN in the fourth quarter and full
year of 2003, as recorded by Genentech, were $369 million and $1.360 billion,
respectively, compared to $318 million and $1.080 billion for the comparable
periods in 2002.
Financial Guidance
Biogen Idec today reaffirmed its long-term goal of achieving 15 percent
compound annual revenue growth, and approximately 20 percent compound annual
earnings per share (adjusted pro forma) growth through 2007. The recent
announcement by the Company, along with its partner, Elan Corporation plc
(Elan), of their intention to submit with the U.S. Food and Drug
Administration an application for the approval of ANTEGREN(R) (natalizumab) as
a treatment for MS based on 1-year Phase III results further enhances the
Company's confidence in its ability to achieve these previously stated
earnings and revenue goals.
In 2004, the Company anticipates its effective tax rate for 2004 to be in
the range of 31 - 33% and capital expenditures to peak in the range of $325
million to $400 million. A significant portion of these expenditures will be
directed towards the construction of a large-scale manufacturing facility and
administrative, research and development space in the San Diego area.
Additionally, the Company expects to generate an average of $500 million in
annual operating cash flow over the next four years.
Biogen Idec Announces Stock Repurchase Plan
Biogen Idec announced that its Board of Directors has authorized the
repurchase of up to 12 million shares of its common stock. The repurchased
stock will provide the Company with treasury shares for general corporate
purposes, such as stock to be issued under employee stock option and stock
purchase plans. Stock purchases will occur from time to time over the next
two years, depending on market conditions and other corporate considerations.
The share buyback will be largely funded through operating cash flow and will
be accretive to EPS.
William Rastetter, Biogen Idec's Executive Chairman, said, "This share
repurchase plan underscores the belief of management and the Board of
Directors that our common stock represents an attractive investment for the
Company, based on our well-defined strategy and our prospects for future
growth. Given our strong anticipated operating cash flow, this program will
not restrict our strategic flexibility."
The Company currently has approximately 331 million shares of common stock
outstanding.
2003 and Early 2004 Highlights
* On January 2, 2003, ANTEGREN Phase II clinical trial results in both MS
and Crohn's disease were published in the New England Journal of Medicine.
* On January 31, 2003, AMEVIVE was approved by the FDA for the treatment
of adult patients with moderate-to-severe chronic plaque psoriasis who are
candidates for systemic therapy or phototherapy.
* On February 7, 2003, the FDA approved a label change for AVONEX to
include treatment of patients with a first MS attack if brain MRI scan
abnormalities characteristic of MS are shown. AVONEX is the first treatment
approved for this use in the U.S.
* On May 29, 2003, the FDA approved a new pre-filled syringe for AVONEX,
designed to make treatment even more convenient for people with MS.
* On June 17, 2003, Genentech, Inc. and Biogen, Inc. announced a
collaboration for the research and development of a BR3 (BAFF-R) protein
therapeutic. The protein is a B-cell activating factor receptor of the TNF
family and is a key target for developing drugs to treat disorders associated
with abnormal B-lymphocyte activity, such as rheumatoid arthritis and lupus.
BAFF-R was first identified by Biogen. Biogen Idec and Genentech will combine
their pioneering efforts in this pathway towards developing a new therapeutic
protein.
* On June 23, 2003, IDEC Pharmaceuticals Corporation and Biogen, Inc.
announced their intention to merge to create the world's third largest
biotechnology company, with strong focus in oncology and immunology.
* On October 1, 2003, Biogen, Inc. licensed from Fumapharm AG exclusive
rights to develop and market a potential new oral therapy for psoriasis
entering Phase III clinical trials in Europe.
* On November 10, 2003, Biogen, Inc. announced positive results of a Phase
II study of oral ADENTRI(TM), an adenosine receptor antagonist, in patients
with stable heart failure. The results were announced at the annual meeting of
the American Heart Association in November 2003 in Orlando, Florida.
* On November 12, 2003, IDEC Pharmaceuticals Corporation and Biogen, Inc.
completed a merger transaction. At the same time, IDEC Pharmaceuticals
Corporation changed its name to Biogen Idec Inc.
* On November 13, 2003, Genentech, Biogen Idec and F. Hoffman La Roche
were informed that an Eastern Cooperative Oncology Group (ECOG) Phase III
study (E1496) evaluating RITUXAN maintenance therapy met its pre-specified
primary efficacy endpoint early. A pre-planned interim analysis of the study
data by an independent ECOG Data Monitoring Committee (DMC) demonstrated a
statistically significant improvement in time to treatment failure for
patients receiving RITUXAN maintenance therapy.
* In December 2003, over 270 abstracts on RITUXAN and more than 10
abstracts on ZEVALIN were presented at the American Society of Hematology
(ASH) 45th Annual Meeting.
* On December 7, 2003, Genentech and Biogen Idec announced initial
positive results of the first randomized Phase III trial with RITUXAN in
previously untreated (front-line) patients with indolent non-Hodgkin's
lymphoma (NHL). The initial results of the study indicated that the addition
of RITUXAN to a chemotherapy regimen of cyclophosphamide, vincristine, and
prednisone (R-CVP) prolonged time to treatment failure, the primary endpoint
of the study, to 26 months compared to seven months for patients treated with
a chemotherapy regimen of cyclophosphamide, vincristine, and prednisone alone.
* In January 2004, Schering AG announced that the European Agency for the
Evaluation of Medicinal Products, the regulatory authority in the European
Union, granted marketing approval of ZEVALIN in the EU for the treatment of
adult patients with CD20+ follicular B-cell NHL who are refractory to or have
relapsed following RITUXAN therapy.
* On January 29, 2004, Elan Corporation, plc and Biogen Idec announced
results from a second Crohn's disease study. In this study, the primary
endpoint of "maintenance of response," as defined by a sustained Crohn's
Disease Activity Index (CDAI) score of less than 220 as well as no use of
rescue intervention throughout six months of the study, was met. This double-
blind, placebo controlled study known as ENACT-2 (Evaluation of Natalizumab as
Continuous Therapy-2) enrolled responders from our other completed Phase III
trial of ANTEGREN in Crohn's disease known as ENACT-1 (Evaluation of
Natalizumab as Continuous Therapy-1). Through month six, there was a
significant treatment difference of greater than 30 percent in favor of
patients taking ANTEGREN compared to those taking placebo. Results from
ENACT-1 were announced in July 2003. In that study, the primary endpoint of
"response," as defined by a 70-point decrease in the CDAI, at week 10, was not
met. There were no notable differences in the overall rates of side effects
between natalizumab and placebo treatment groups in either trial. The most
common adverse events seen in the two trials were headache, nausea, and
abdominal pain across both the treatment and placebo groups. The Companies
plan to initiate an additional Phase 3 study of ANTEGREN in Crohn's disease in
2004.
* On February 5, 2004, Celltech Group plc and Biogen Idec announced that
they entered into a collaboration for the research, development and
commercialization of antibodies against the CD40 ligand (CD40L) protein for
the treatment of autoimmune diseases.
* On February 18, 2004, Biogen Idec and Elan announced that they expect to
submit a Biologics License Application (BLA) for approval of ANTEGREN as a
treatment for MS. The companies expect to submit the BLA mid-year 2004. The
decision to file the BLA was made after discussions with the FDA of one-year
data from the two ongoing two-year Phase III trials in MS. The companies are
committed to completing the two-year trials.
CONFERENCE CALL AND WEBCAST
The Company's earnings conference call for the fourth quarter will be
broadcast via the Internet at 5:00 p.m. ET on March 2, 2004, and will be
accessible through the investor relations section of Biogen Idec's homepage,
http://www.biogenidec.com.
About Biogen Idec
Biogen Idec creates new standards of care in oncology and immunology. As a
global leader in the development, manufacturing, and commercialization of
novel therapies, Biogen Idec transforms scientific discoveries into advances
in human healthcare. For product labeling, press releases and additional
information about the company, please visit http://www.biogenidec.com
Safe Harbor
This press release contains forward-looking statements regarding expected
future financial results and plans for our development programs.
These statements are based on the Company's current beliefs and
expectations. A number of risks and uncertainties could cause actual results
to differ materially. For example, financial results, including future
revenues, revenue growth, earnings per share, product sales, royalties,
expenses, effective tax rate, and capital expenditures, may be affected by a
number of factors, including any slowing of growth of the markets for AVONEX
and RITUXAN, any change in market acceptance of these products in key markets
worldwide, the extent to which the Company achieves market acceptance of its
other products, the impact of reimbursement and pricing decisions related to
the Company's products, the impact of competitive products on the Company's
products, any material decreases in sales by licensees of products on which
the Company receives royalties, the impact of litigation, any unanticipated
increase in expenses, in-licensing and product opportunities, and any material
issues, delays or failures related to the manufacturing or supply of the
Company's products. For example, we have encountered certain problems in the
manufacture of AVONEX. As a result, we have had to write down a number of
batches. If these problems continue, we would likely have to incur additional
charges and could potentially experience an interruption in the supply of
AVONEX.
Our long-term growth will depend on the successful development and
commercialization of new products such as ANTEGREN. Drug development involves
a high degree of risk. For example, our plans to file a BLA for approval of
ANTEGREN as a treatment for MS could be negatively affected if unexpected
concerns arise from additional data or analysis, if regulatory authorities
require additional information or further studies, or if we were to encounter
other unexpected hurdles.
For more detailed information on the risks and uncertainties associated
with these forward looking statements and the Company's other activities see
the periodic reports filed by the Company and Biogen, Inc. with the Securities
and Exchange Commission. The Company does not undertake any obligation to
publicly update any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Media Contact:
Amy Ryan
Associate Director, Public Affairs
Biogen Idec
Tel: (617) 914-6524
Investment Community Contact:
Elizabeth Woo
Senior Director, Investor Relations
Biogen Idec
Tel: (617) 679-2812
TABLE 1
Financial Results For The Fourth Quarter and Full Year of 2003
Condensed Consolidated Statements Of Income - GAAP Basis
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2003 2002 2003 2002
REVENUES
Product $156,492 $5,453 $171,561 $13,711
Revenue from unconsolidated joint
business 129,813 116,559 493,049 385,809
Royalties 12,010 - 12,010 -
Contract 1,531 1,640 2,563 4,702
Total Revenues 299,846 123,652 679,183 404,222
COST AND EXPENSES
Cost of product and royalty
revenues 279,457 336 284,739 1,457
Research and development 111,954 28,452 233,337 100,868
Selling, general and
administrative 99,614 26,976 174,596 88,021
Acquisition of in-process
research and development 823,000 - 823,000 -
Amortization of acquired
intangible assets 33,180 - 33,180 -
Total Cost and Expenses 1,347,205 55,764 1,548,852 190,346
Income from Operations (1,047,359) 67,888 (869,669) 213,876
Other income (expense), net (19,504) 4,409 (10,955) 17,646
INCOME (LOSS) BEFORE INCOME TAXES (1,066,863) 72,297 (880,624) 231,522
Income Taxes (76,296) 27,703 (5,527) 83,432
NET INCOME (LOSS) $(990,567) $44,594 (875,097) 148,090
BASIC EARNINGS (LOSS) PER SHARE $(4.03) $0.29 $(4.92) $0.97
DILUTED EARNINGS (LOSS) PER SHARE $(4.03) $0.26 $(4.92) $0.85
SHARES USED IN CALCULATING:
BASIC EARNINGS (LOSS) PER
SHARE 245,831 153,410 177,982 153,086
DILUTED EARNINGS (LOSS) PER
SHARE 245,831 178,247 177,982 179,634
Note: Certain items in prior years' financial statements have been
reclassified to conform to current year's
presentation.
TABLE 2
Condensed Consolidated Balance Sheets
(dollars in thousands)
Dec. 31, 2003 Dec. 31, 2002
Assets:
Current assets
Cash, cash equivalents and
securities available-for-sale $835,959 $787,774
Accounts receivable, net 198,524 4,920
Inventory 496,349 33,665
Other current assets 296,593 151,251
Total current assets 1,827,425 977,610
Long-term securities available-
for-sale 1,502,327 660,091
Property and equipment, net 1,252,783 264,537
Intangible assets, net 3,638,812 -
Goodwill 1,153,015 -
Other 120,293 157,451
Total assets $9,494,655 $2,059,689
Liabilities and shareholders'
equity
Current liabilities $387,222 $56,225
Long-term deferred tax liability 1,115,384 -
Non-current liabilities 937,474 893,774
Shareholders' equity 7,054,575 1,109,690
Total liabilities and
shareholders' equity $9,494,655 $2,059,689
TABLE 3
Biogen Idec
Condensed Consolidated Statements of Operations
and Reconciliation of GAAP Earnings to Adjusted Pro Forma Non-GAAP
Earnings
(In millions, except per share data)
Three Months Ended
December 31, 2003
Biogen Adjusted
Adjusted Operating Pro Forma
GAAP Adjustments Non-GAAP Pre-Merger Non-GAAP
10/1-11/12/03
Revenues
Product $156.5 - $156.5 $175.5(A) $332.0
Revenues from
unconsolidated
joint business 129.8 - 129.8 - 129.8
Royalties 12.0 - 12.0 14.8(A) 26.8
Corporate
partner revenues 1.5 - 1.5 1.0(A) 2.5
Total Revenues 299.8 - 299.8 191.3 491.1
Cost and Expenses
Cost of sales 279.4 (233.4)(B) 46.0 33.0(A) 79.1
Research and
development 112.0 - 112.0 52.8(A) 164.8
Selling, general
and
administrative 99.6 (3.1)(D) 86.3 50.4(A) 136.7
(10.2)(E) -
Write-off of
acquired
in-process
research and
development 823.0 (823.0)(F) - - -
Amortization of
acquired
intangibles 33.2 (33.2)(G) (0.0) - (0.0)
Total costs
and expenses 1,347.2 (1,102.9) 244.3 136.2 380.5
Income (loss)
from
operations (1,047.4) 1,102.9 55.5 55.1 110.6
Other income
(expense),
net (19.5) 30.7(H) 11.2 4.8(A) 16.0
Income (loss)
before income
taxes (1,066.9) 1,133.6 66.7 59.9 126.6
Provision
(benefit) for
income taxes (76.3) 100.0(I) 23.7 15.6(A) 39.2
Net income
(loss) ($990.6) $1,033.6 $43.0 $44.3 $87.4
Numerator:
Net income
(loss) ($990.6) $43.0 $87.4
Net adjustment
for interest
expense - 0.4 0.4
Net income (loss)
used in
calculating
diluted eps ($990.6) $43.4 $87.8
Shares used in calculation of earnings (loss) per share:
Denominator:
Weighted
average number
of common shares
outstanding 245.8 245.8 328.0
Effect of
dilutive
securities:
stock options,
convertible
preferred stock,
convertible
promissory
notes - 32.4 32.4
Dilutive
potential
common shares 245.8 278.2 360.4
Earnings (loss) per share:
Basic ($4.03) $0.18 $0.27
Diluted ($4.03) $0.16 $0.24
Three Months Ended
December 31, 2002
Biogen Adjusted
AdjustedOperating Pro Forma
GAAP Adjustments Non-GAAPPre-Merger Non-GAAP
10/1-12/31/02
Revenues
Product $5.5 - $5.5 $256.3 (A) $261.7
Revenues from
unconsolidated
joint business 116.6 - 116.6 - 116.6
Royalties - - - 46.2(A) 46.2
Corporate
partner revenues 1.6 - 1.6 -(A) 1.6
Total Revenues 123.7 - 123.7 302.5 426.1
Cost and Expenses
Cost of sales 0.3 - 0.3 42.6(A) 42.9
Research and
development 28.5 - 28.5 91.2(A) 119.7
Selling,
general and
administrative 27.0 - 27.0 86.4(A) 113.4
Write-off of
acquired
in-process
research and
development - - - - -
Amortization of
acquired
intangibles - - - - -
Total costs and
expenses 55.8 - 55.8 220.2 276.0
Income (loss)
from operations 67.9 - 67.9 82.3 150.1
Other income
(expense), net 4.4 - 4.4 8.0(A) 12.4
Income (loss)
before income
taxes 72.3 - 72.3 90.3 162.6
Provision
(benefit) for
income taxes 27.7 - 27.7 25.3(A) 53.0
Net income
(loss) $44.6 - $44.6 $65.0 $109.6
Numerator:
Net income
(loss) $44.6 $44.6 $109.6
Net adjustment
for interest
expense 3.10 3.10 3.10
Net income
(loss) used in
calculating
diluted eps $47.7 $47.7 $112.7
Shares used in calculation of earnings (loss) per share:
Denominator:
Weighted
average
number of
common shares
outstanding 153.4 153.4 325.3
Effect of
dilutive
securities:
stock options,
convertible
preferred stock,
convertible
promissory
notes 24.8 24.8 24.8
Dilutive
potential
common shares 178.2 178.2 350.1
Earnings (loss) per share:
Basic $0.29 $0.29 $0.34
Diluted $0.26 $0.26 $0.32
(A) Represents former Biogen, Inc. operating revenue and expenses for
the period of 2003 prior to the merger and full year 2002.
The operating results from October 1 to November 12, 2003 are
unaudited.
(B) Represents the non-cash expense related to valuing the inventory
acquired from former Biogen, Inc. at fair value and the royalties
related to Corixa settlement.
(C) Represents non-recurring signing payment in association with new
anti-CD20 antibody development collaboration.
(D) Represents external, incremental consulting and integration costs.
(E) Represents severance and restructuring charges.
(F) Represents the non-recurring, non cash expense associated with
writing-off the acquired in-process research and development related
to the merger with former Biogen, Inc.
(G) Represents the ongoing, non-cash amortization of acquired intangible
assets related to the merger with former Biogen, Inc.
(H) Represents non-recurring charges associated with charitable
donations and legal settlements.
(I) Represents the tax effect of the above adjustments.
TABLE 4
Biogen Idec
Condensed Consolidated Statements of Operations
and Reconciliation of GAAP Earnings to Adjusted Pro Forma Non-GAAP
Earnings
(In millions, except per share data)
Year Ended
December 31, 2003
Biogen Adjusted
Adjusted Operating Pro Forma
GAAP Adjustments Non-GAAP
Pre-Merger Non-GAAP
1/1-11/12/03
Revenues
Product $171.6 - $171.6 $1,056.9(A) $1,228.5
Revenues from
unconsolidated
joint business 493.0 - 493.0 - 493.0
Royalties 12.0 - 12.0 115.2(A) 127.2
Corporate partner
revenues 2.6 - 2.6 1.0(A) 3.6
Total Revenues 679.2 - 679.2 1,173.1 1,852.4
Cost and Expenses
Cost of sales 284.7 (233.4)(B) 51.3 179.2(A) 230.5
Research and
development 233.3 (20.0)(C) 213.3 332.4(A) 545.7
-(D) -
Selling,
general and
administrative 174.6 (3.0)(E) 161.4 346.7(A) 508.1
(10.2)(F) -
Write-off of
acquired
in-process
research and
development 823.0 (823.0)(G) - - -
Amortization of
acquired
intangibles 33.2 (33.2) - - -
Total costs
and expenses 1,548.8 (1,122.8) 426.0 858.3 1,284.3
Income (loss)
from
operations (869.6) 1,122.8 253.2 314.8 568.0(H)
(H)
Other income
(expense),
net (11.0) 30.7 19.7 31.9(A) 51.6
Income (loss)
before income
taxes (880.6) 1,153.5 272.9 346.7 619.5(I)
Provision
(benefit)
for income
taxes (5.5) 107.4 101.9 90.1(A) 192.1
Net income
(loss) ($875.1) $1,046.1 $171.0 $256.6 $427.5
Numerator:
Net income
(loss) ($875.1) $171.0 $427.5
Net
adjustment
for interest
expense - 9.4 9.4
Net income
(loss) used
in calculating
diluted eps ($875.1) $180.4 $436.9
Shares used in calculation of earnings (loss) per share:
Denominator:
Weighted average
number of
common shares
outstanding 178.0 178.0 327.3
Effect of
dilutive
securities:
stock options,
convertible
preferred stock,
convertible
promissory notes - 31.9 31.9
Dilutive
potential common
shares 178.0 209.9 359.2
Earnings (loss) per share:
Basic ($4.92) $0.96 $1.31
Diluted ($4.92) $0.86 $1.22
Year Ended
December 31, 2002
Biogen Adjusted
Adjusted Operating Pro Forma
GAAP Adjustments Non-GAAP Pre-Merger Non-GAAP
1/1-12/31/02
Revenues
Product $13.7 - $13.7 $1,034.4(A) $1,048.1
Revenues
from
unconsolidated
joint business 385.8 - 385.8 - 385.8
Royalties - - - 114.0(A) 114.0
Corporate
partner
revenues 4.7 - 4.7 -(A) 4.7
Total Revenues 404.2 - 404.2 1,148.4 1,552.6
Cost and Expenses
Cost of sales 1.5 - 1.5 160.2(A) 161.6
Research and
development 100.9 - 100.9 367.6(A) 468.4 -
Selling,
general and
administrative 88.0 - 88.0 318.2(A) 406.2
Write-off of
acquired
in-process
research and
development - - - - -
Amortization of
acquired
intangibles - - - - -
Total costs and
expenses 190.4 - 190.4 845.9 1,036.3
Income (loss)
from
operations 213.8 - 213.8 302.4 516.3
Other income
(expense), net 17.6 - 17.6 33.3(A) 51.0
Income (loss)
before income
taxes 231.4 - 231.4 335.7 567.3
Provision
(benefit) for
income taxes 83.4 - 83.4 94.0(A) 177.4
Net income
(loss) $148.0 - $148.0 $241.7 $389.8
Numerator:
Net income
(loss) $148.0 $148.0 $389.8
Net adjustment
for interest
expense 4.90 4.90 4.90
Net income
(loss) used
in calculating
diluted eps $152.9 $152.9 $394.7
Shares used in calculation of earnings (loss) per share:
Denominator:
Weighted average
number of
common shares
outstanding 153.1 153.1 324.8
Effect of
dilutive
securities:
stock options,
convertible
preferred stock,
convertible
promissory
notes 26.5 26.5 29.6
Dilutive
potential
common shares 179.6 179.6 354.4
Earnings (loss) per share:
Basic $0.97 $0.97 $1.20
Diluted $0.85 $0.85 $1.11
(A) Represents former Biogen, Inc. operating revenue and expenses for
the period of 2003 prior to the merger and full year 2002.
The operating results from October 1 to November 12, 2003 are
unaudited.
(B) Represents the non-cash expense related to valuing the inventory
acquired from former Biogen, Inc. at fair value and the royalties
related to Corixa settlement.
(C) Represents non-recurring signing payment in association with new
anti-CD20 antibody development collaboration.
(D) Represents external, incremental consulting and integration costs.
(E) Represents severance and restructuring charges.
(F) Represents the non-recurring, non cash expense associated with
writing-off the acquired in-process research and development related
to the merger with former Biogen, Inc.
(G) Represents the ongoing, non-cash amortization of acquired intangible
assets related to the merger with former Biogen, Inc.
(H) Represents non-recurring charges associated with charitable
donations and legal settlements.
(I) Represents the tax effect of the above adjustments.
Table 5
Biogen Idec Inc
Product Revenues for Fourth Quarter and Full Year 2003
Combined Pro Forma Revenue
(in thousands)
The non-GAAP pro forma financial measures presented below are utilized by
Biogen Idec management to gain an understanding of the comparative revenue
performance of the Company. Management believes that the non-GAAP
financial measures are useful because they include those non-GAAP
activities or transactions that may be relevant to obtaining an
understanding of the trends of the Company or the prospects of future
performance.
Three Months Ended
December 31,
2003
Biogen Pro Forma
U.S. GAAP Revenue Combined
Revenue(a) Pre-merger(b) Revenue
PRODUCT REVENUES
Avonex(R) $142,603 $167,513 $310,116
Amevive(R) 9,356 7,984 17,340
Zevalin(R) 4,533 - 4,533
Total Product Revenues $156,492 $175,497 $331,989
Three Months Ended
December 31,
2002
Biogen Pro Forma
U.S. GAAP Revenue Combined
Revenue(a) Pre-merger(b) Revenue
PRODUCT REVENUES
Avonex(R) $- $256,267 $256,267
Amevive(R) - - -
Zevalin(R) 5,453 - 5,453
Total Product Revenues $5,453 $256,267 $261,720
(a) US GAAP includes revenue from the former Biogen, Inc. for the
period following the merger close of November 13, 2003 through
December 31, 2003 only and IDEC Pharmaceuticals Corporation for
the full year.
(b) Represents former Biogen, Inc. revenue that is not included in GAAP
revenues.
Twelve Months Ended
December 31,
2003
Biogen Pro Forma
U.S. GAAP Revenue Combined
Revenue(a) Pre-merger(b) Revenue
PRODUCT REVENVUES
Avonex(R) $142,603 $1,025,874 $1,168,477
Amevive(R) 9,356 31,058 40,414
Zevalin(R) 19,602 - 19,602
Total Product Revenues $171,561 $1,056,932 $1,228,493
Twelve Months Ended
December 31,
2002
Biogen Pro Forma
U.S. GAAP Revenue Combined
Revenue(a) Pre-merger(b) Revenue
PRODUCT REVENVUES
Avonex(R) $- $1,034,357 $1,034,357
Amevive(R) - - -
Zevalin(R) 13,711 - 13,711
Total Product Revenues $13,711 $1,034,357 $1,048,068
(a) US GAAP includes revenue from the former Biogen, Inc. for the
period following the merger close of November 13, 2003 through
December 31, 2003 only and IDEC Pharmaceuticals Corporation for
the full year.
(b) Represents former Biogen, Inc. revenue that is not included in GAAP
revenues.
SOURCE Biogen Idec Inc.
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