Slide 1: Biogen Idec Investor Presentation Spring 2009
Biogen Idec Investor Presentation Spring 2009 biogen idec
Slide 2: Forward Looking and Proxy Solicitation Statements
Forward Looking and Proxy Solicitation Statements • This presentation includes forward-looking statements about: — our 2009 guidance and our financial and operational goals through 2010 — estimates of sales for our products and the size and growth of the markets for our products — our expected filin
Slide 3: Delivering on Our Commitment to Shareholders
Delivering on Our Commitment to Shareholders Financial Performance • Consistently delivered strong EPS and revenue growth over the last 5 years • 2008 results exceeded guidance • Solid growth projected for 2009; Q1 revenues +10% y/y, non-GAAP EPS +27% y/y Operational Performance • Progress in pipeli
Slide 4: Agenda
Agenda • Results and Accountability • Drivers of Shareholder Value • Corporate Strategy and Governance biogen idec
Slide 5: Exceptionally Strong 2008
Exceptionally Strong 2008 Revenues +29% CAGR $4.1B $3.2B 2007 2008 Non-GAAP EPS +34% CAGR $3.66 $2.74 2007 2008 Substantially exceeded 2008 guidance Original 2008 Guidance Results Revenue $3.6-$3.8 billion $4.1 billion Revenue Growth 15%-20% 29% Non-GAAP Operating Margins 36%-40% 39% Non-GAAP R&D 26
Slide 6: Consistently Strong Track Record
Consistently Strong Track Record Delivered on 2003 Merger Goals Revenue ($ Billions) +17% CAGR 1.9 2.2 2.4 2.7 3.2 4.1 15% ‘03-’07 Goal 2003 2004 2005 2006 2007 2008 EPS ($) +25% CAGR 1.22 1.40 1.57 2.25 2.74 3.66 20% ‘03-’07 Goal 2003 2004 2005 2006 2007 2008 Free Cash Flow ($ Millions) +37% CAGR 3
Slide 7: Diversified and Growing Portfolio
Diversified and Growing Portfolio Revenue by Product $ Billions +17% CAGR 1.9 0.2 0.4 0.1 1.2 2.2 2.4 2.7 3.2 4.1 0.2 0.6 0.8 0.3 2.2 Other Revenue TYSABRI US RITUXAN Profit Share ROW RITUXAN Royalties AVONEX (1) 2003 2004 2005 2006 2007 2008 (1) 2003 is pro forma data for the Biogen and Idec merger
Slide 8: Biogen Idec Stock Performance (as of Record Date)
Biogen Idec Stock Performance (as of Record Date) 8% 6% 4% 3% CAGR -2% -3% -4% -6% -14% -20% - -22% -39% Since Merger 5 Years 3 Years 1 Year BIIB BTK S&P 500 Note: 1, 3, 5 and Since Merger data compares stock performance as of 04/06/09 biogen idec
Slide 9: Winning Strategy
Winning Strategy • Specialty markets with significant needs • First-in-class or best-in-class molecules • Global Global Footprint Expanding 2006 2007-2008 2011-2012 2013+ biogen idec
Slide 10: Biogen Idec Merger
Biogen Idec Merger Strategic Acceleration Fusion of Strength Scale and Breadth Economic Acceleration biogen idec
Slide 11: Strategy Drives Economic Model
Strategy Drives Economic Model Operating Profit Margin (2008 Actual) 53% 41% 39% 37% Biotech Avg: 41% 33% Big Pharma Avg(1): 27% Amgen Gilead Celgene Genzyme Biogen Idec Biotech Big Pharma 2008 Actual (Non-GAAP) Avg Avg(1) COGS/Sales 15% 21% 10% 24% 10% 16% 24% R&D/Sales 19% 12% 24% 16% 26% 20% 18%
Slide 12: 2010 Goals
2010 Goals We made substantial progress over the past year toward achieving our 2010 goals Goal Progress Revenue Growth • 15% top line CAGR from 2007 to 2010 9+ Financial EPS Growth • 20% bottom line CAGR from 2007 to 2010 9+ TYSABRI • TYSABRI patients on therapy exceeds 100,000 9-AVONEX • AVONEX ma
Slide 13: TYSABRI Trajectory
TYSABRI Trajectory Monthly Global Revenue Trajectory Post Launch 100,000 90,000 80,000 ) 0 00 70,000 $ S U ( 60,000 ue en 50,000 Rev TYSABRI 40,000 ENBREL 30,000 HUMIRA 20,000 10,000 REMICADE 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Months post Launch TYSABR
Slide 14: Potential Breakthrough in Interferon Beta Life Cycle Management
Potential Breakthrough in Interferon Beta Life Cycle Management AVONEX Sales +13% $2.2B CAGR $1.2B 2003 2008 PEGylated Interferon Beta-1a molecule Proof-of-Concept • PEGylated version of Inteferon ß-1a delivered via liquid prefilled syringe • Increased half-life and systemic exposure of the protein
Slide 15: RITUXAN Growth
RITUXAN Growth RITUXAN Hem/Onc US Product Sales ($B) $2.6 $2.3 $2.1 $1.8 $1.6 $1.4 $1.1 $0.8 $0.4 $0.3 $0.2 $0.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Standard of Care for NHL Anti-CD20 Adoption in RA aTNF Cycling Study Data 20% $8B RA Market by 2012 Ocrelizumab DMARD Launch 15
Slide 16: Broad and Deep Pipeline
Broad and Deep Pipeline Neurology Pre-Clinical Phase 1 Phase 2 Phase 3 Market AVONEX Multiple sclerosis TYSABRI Multiple sclerosis BG-12 Multiple sclerosis Daclizumab Multiple sclerosis Ocrelizumab Multiple sclerosis CDP323 Multiple sclerosis BIIB014 Parkinson’s PEGylated-IFNß1a Multiple sclerosis N
Slide 17: R&D Accomplishments
R&D Accomplishments 60 clinical trials ongoing • 6 programs in registrational trials and 2 more expected in 2009 15 indications across neurology, oncology, immunology, cardiovascular and hematology 35 preclinical and discovery research programs biogen idecHighest Quality Pipeline biogen idec
Slide 18: Highest Quality Pipeline
Highest Quality Pipeline Moody’s Investors Service Research Rates Biogen Idec: Highest on late-stage pipeline quality Table 2 Late-Stage Pipeline Quality Biogen Idec (Baa3) 54.3% Allergan (A3) 31.8% Schering-Plough (Baa1) 27.7% J&J (Aaa) / Pharma Only** 27.5% Amgen (A3) 23.8% Genentech (A1*) 21.0% W
Slide 19: Owners' Perspective
Owners’ Perspective Steward of Shareholder Value • Largest merger of 2 independent biotechs Strong Corporate Governance • $3B share repurchase/Dutch Auction • Added 2 new directors after soliciting input from major Financial Discipline • Disciplined execution of business shareholders development str
Slide 20: Maximizing Shareholder Value
Maximizing Shareholder Value Range of Alternatives to Maximize Value Growth through Organic Growth Sale Acquisitions Capital Structure biogen idec
Slide 21: Broad Based Board Experience
Broad Based Board Experience Customer Nobel Laureate Finance / International General Mgmt R&D Perspective / Public Policy / Natl Academy M&A Business Market & Sales of Sciences Larry Best* 9 9 9 Alan Glassberg, M.D.* 9 9 Robert Pangia* * Recommended for election to9 Biogen Idec board 9 Bill Young* 9
Slide 22: Board Additions Reflect Diversified Expertise and Shareholder Input
Board Additions Reflect Diversified Expertise and Shareholder Input Cecil B. Pickett, Ph. D. • President, Research and Development Biogen Idec (July 2006) • 28 years experience at Schering-Plough and Merck Marijn E. Dekkers, Ph. D. • President, CEO, and Director Thermo Fisher Scientific (June 2007)
Slide 23: Biogen Idec Actively Engages in Dialogue with Shareholders
Biogen Idec Actively Engages in Dialogue with Shareholders Conferences & Buyside Phone Roadshows Roundtables Meetings Contacts Independent Directors 9 9 CEO / CFO 9 9 9 Investor Relations 9 9 9 9 • Sell Side • Proxy Roadshow • In Person • Phone Contacts Conferences and in 2008 Meetings — 1,000+/year
Slide 24: Dissident Slate
Dissident Slate Age Primary Occupation Previous Board Seeking Board Alexander J. Denner, Ph.D. 39 Managing Director, Icahn ImClone Biogen Idec, Enzon, Amylin Partners Richard C. Mulligan, Ph.D. 54 Professor, Harvard Medical ImClone, Somatix Biogen Idec, Enzon School Thomas F. Deuel, M.D. 74 Professo
Slide 25: Delivering on Our Commitment to Shareholders
Delivering on Our Commitment to Shareholders Financial • Strong 2008 performance and effective utilization of capital 9 Performance Operational • Focused on our 2010 goals and advancing our R&D pipeline 9 for future growth Performance Corporate • Proactively strengthened our board and improved our 9
Slide 26: Conclusion
Conclusion • Biogen Idec has a proven track record of delivering exceptional performance • The business is poised to create future shareholder value — Pursuing a well-defined strategy for future growth — Broad and deep pipeline with 8 late stage programs expected 2H 2009 • This Board is best positio
Slide 27: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation Diluted EPS and Net Income Attributable to Biogen Idec Inc Condensed Consolidated Statements of Income — Operating Basis FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 GAAP diluted EPS (4.92) 0.07 0.47 0.63 1.99 2.65 Adjustment to net income attributable to Biogen Id