Top Companies Report

04 Biogen Idec

July 12, 2006

#4 Biogen Idec

14 Cambridge Center
Cambridge, MA 02142
Tel: (617) 679-2000
Fax: (617) 679-2617

Headcount 3,500  
Year Established 2003  
Biopharma Revenues $2,236  +10%
Total Revenues $2,423 +10%
Royalty Revenues $93 -6%
Net Income $161 +544%
R&D Budget $747 +9%

Drugs Approved/Launched
Drug Indication 
rituxan active, moderate to severe rheumatoid arthritis, diffuse large B-cell CD20-positive NHL
tysabri multiple sclerosis -- relapsing forms

Drugs Pending Approval
Drug Indication
rituxan indolent non-Hodgkin’s lymphoma

Drugs in Phase IIb and Beyond
Drug Indication
tysabri Crohn’s disease
rituxan DMARD refractory, lupus/SLE, relapsed chronic lymphocytic leukemia
bg-12 oral fumarate psoriasis
zevalin diffuse large B-cell lymphoma

Early Research Projects
Drug Indication
br3-fc inflammation
lymphotoxin beta receptor rheumatoid arthritis
interferon beta gene delivery cancer
anti-lymphotoxin beta receptor mAb solid tumors
A2a receptor Parkinson’s disease
anti-cripto solid tumors
anti-br3 mAb chronic lymphocytic leukemia
anti-alpha v beta 6 pulmonary fibrosis
cd40L SLE
neublastin neuropathic pain

Top Selling Drugs
Drug Indication Sales (+/-%)
avonex multiple sclerosis $1,543 +9%
rituxan non-Hodgkin’s lymphoma $709 +15%
amevive chronic plaque psoriasis $48 +12%
zevalin non-Hodgkin’s lymphoma $21 -9%
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.

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