#4 Biogen Idec
14 Cambridge Center
Cambridge, MA 02142
Tel: (617) 679-2000
Fax: (617) 679-2617
|rituxan||active, moderate to severe rheumatoid arthritis, diffuse large B-cell CD20-positive NHL|
|tysabri||multiple sclerosis -- relapsing forms|
|Drugs Pending Approval|
|rituxan||indolent non-Hodgkin’s lymphoma|
|Drugs in Phase IIb and Beyond|
|rituxan||DMARD refractory, lupus/SLE, relapsed chronic lymphocytic leukemia|
|bg-12 oral fumarate||psoriasis|
|zevalin||diffuse large B-cell lymphoma|
Early Research Projects
|lymphotoxin beta receptor||rheumatoid arthritis|
|interferon beta gene delivery||cancer|
|anti-lymphotoxin beta receptor mAb||solid tumors|
|A2a receptor||Parkinson’s disease|
|anti-br3 mAb||chronic lymphocytic leukemia|
|anti-alpha v beta 6||pulmonary fibrosis|
|Top Selling Drugs|
|amevive||chronic plaque psoriasis||$48||+12%|
Account for 100% of total biopharma sales, up from 99% in 2004.
Biogen Idec took a look in the mirror in 2005 and didn't like what it saw. The recently merged company announced a restructuring plan in September 2005, which included a reducing staff by 17% (650 people), selling off non-core assets, and intensifying in-licensing efforts. The plan is intended to cut operating expenses by $200 to $300 million annually, which the company plans to pour into its business development and external research initiatives.
Speaking of external research, BI inked a development deal with Protein Design Labs a month before the restructuring announcement. BI will co-develop three of PDL's Phase II biologics (covering multiple sclerosis, rheumatoid arthritis and antiangiogenesis/oncology). If all products reach their development and commercialization milestones, BI will pay out $660 million, and will co-promote the products in the U.S. and Europe.
In April 2006, BI sold off Amevive, a biologic treatment for chronic plaque psoriasis, to Japanese pharma company Astellas. Amevive brought in $48 million in 2005 sales for BI. Neither company disclosed the price of that purchase.
Last year, BI made news when MS drug Tysabri (co-developed with Elan) was pulled from the market after several patients in a clinical trial developed progressive multifocal leukoencephalopathy (PML), a more dangerous version of MS.
But after extensive review, the FDA approved Tysabri for use in clinical trials in March 2006. In June 2006, BI brought the drug back to the market with enhanced safety warnings and a risk management plan to inform physicians and patients of the risks and benefits of the drug.
The company got even better news when BI and Genentech got approval for Rituxan as a treatment for rheumatoid arthritis. The FDA granted a priority review of the drug as an alternative to RA sufferers who don't respond well to TNF inhibitors. Since BI made more than $700 million in 2005 from Rituxan sales for non-Hodgkin's lymphoma, the new indication should help drive its share of revenues (the two companies co-market in the U.S.) over $1 billion by next year.
Tysabri's return to the market should help increase the company's sales of Avonex (despite the PML risk when the drugs are taken together), and Rituxan's sales will benefit from the new indications. If the company can develop its pipeline through its BG-12 MS treatment and the PDL deal -- as well as other in-licensed compounds -- BI may be able to stave off the competition in the second-tier of Biopharma.