Biogen Inc. · NASDAQ:BIIB
Biogen — Biogen Idec — Merrill Lynch Healthcare Conference 2008
27 slides from Biogen's conference presentation, Feb 7, 2008
Slide 1: Jim Mullen, CEO, Merrill Lynch Healthcare Conference
Jim Mullen, CEO Merrill Lynch Healthcare Conference New York, NY February 7, 2008
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements about: our expected revenues, earnings, and cash flows the size and growth of the markets for our products, estimates of sales for our products, our expected filings with regulatory agencies, the anticipated development
Slide 3: Proxy Solicitation Statement
Proxy Solicitation Statement Biogen Idec and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of Biogen Idec in connection with the Company's 2008 annual meeting of stockholders.
Slide 4: Agenda
Agenda Business Review & Outlook Strategy & Fundamentals 2008 Guidance
Slide 5: Pipeline Positioned for Strong Growth
2003 2004 2005 2006 2007 2008 2009 2010 Revenue 1.85 2.212 2.423 2.683 3.139 EPS 1.22 1.4 1.57 2.25 2.65 Biogen Idec's Value Creation Pipeline positioned for strong growth Note: The EPS references on this slide refer to non-GAAP EPS. Non-GAAP EPS excludes the impact of purchase accounting, merger-re
Slide 6: Profitable Biotech Peers Stock Return
Profitable Biotech Peers 4 Year Stock Return AMGN -0.07 MLNM -0.05 DNA 0.09 GENZ 0.11 BIIB 0.12 GILD 0.33 CELG 0.42 4 year compound annual growth (CAGR): 12/31/2003-12/31/2007
Slide 7: 2010 Operating Goals
2010 Operating Goals Drive exceptional revenue growth TYSABRI(r) patients on therapy exceeds 100,000 by year end 2010 AVONEX(r) maintains its patient market share in the "ABCR" market Anti-CD20 franchise growth fueled by filings in at least 2 additional indications Over 40% of revenue from Internati
Slide 8: Agenda
Agenda Business Review & Outlook Strategy & Fundamentals 2008 Guidance
Slide 9: Biogen Idec's Strategy
Significant Products Global Specialty Markets High Unmet Need Biogen Idec's Strategy Advance pipeline and expand TAs Expand geographic reach Develop and Commercialize Blockbuster Brands Advance world class biologics development and manufacturing capabilities Deliver strong financial performance Exec
Slide 10: Strong Commercial Foundation
2004 2005 2006 2007 AVONEX 1417.2 1543.1 1706.7 1867.842 RITUXAN 615.7 708.9 810.9 926.098 TYSABRI 3.1 4.7 35.8 229.844 Strong Commercial Foundation Relaunched in US and launched in EU in July 2006 A major advance in MS for patients who need more efficacy Partnered with Elan Pharmaceuticals ~$4.6B i
Slide 11: Building Blocks for Growth
Building Blocks for Growth 2nd and 3rd generation molecules (Ocrelizumab, etc.) Additional indications Lupus CLL MS RA - DMARD IR RA penetration and market share Additional indications (e.g. oncology) Crohn's Disease Geographic expansion Japan South America China/India Penetration and market share i
Slide 12: TYSABRI Patient Update
TYSABRI(r) Patient Update Current AVONEX US 70000 Int'l 60000 Clinical 2008 2009 2010 US 10500 40000 Int'l 5500 60000 Clinical 1000 WW Patients on Therapy 100,000 130,000+ TYSABRI(r) Patients Oct '06 Feb Apr May July Sept Dec Total 3100 7500 10000 12500 14000 17000 21000 AVONEX(r) Patients 21,000 20
Slide 13: TYSABRI Patient Update
TYSABRI(r) Patient Update As of late December 2007: over 21,000 world wide patients on TYSABRI(r) therapy US Commercial: ~12,900 patients on commercial therapy International Commercial: ~7,500 patients on commercial therapy Clinical Trials: ~700 patients on therapy in clinical trials 95 of the top 1
Slide 14: Significant Growth Opportunity
Significant Growth Opportunity NHL (with 3 label expansions in '06) RA - anti-TNF-IR (launched Q1 '06) RA label expansions - Ph. 3 (including DMARD-IR) CLL - Ph. 3 PPMS - Ph. 2/3 RA - Ph.1/2 completed RRMS - Ph. 2 planned Ocrelizumab Ocrelizumab SLE Ph. 2/3 & LN Ph. 3 in 2009 Marketed 2008 Data Read
Slide 15: Expanding the RITUXAN Franchise
Expanding the RITUXAN(r) Franchise Indication Global Market Size H1 2008 Data Readouts Rheumatoid Arthritis (Current label) $6+ billion 300K TNF-IR patients 1.3 million DMARD IR patients Ph. 3: reduction in signs and symptoms at week 24 (%ACR 20) among other composite endpoints Multiple Sclerosis $5
Slide 16: Leveraging Value via our Extensive Global Footprint
Leveraging Value via our Extensive Global Footprint MASSACHUSETTS Cambridge - HQ SWITZERLAND Zug - HQ Direct commercial capabilities in 25 countries Distributors and partners extend commercial reach to over 70 additional markets
Slide 17: Markets in which Biogen Idec is Investing
Markets in which Biogen Idec is Investing Neurology Oncology Immunology Cardiology Hemophilia MS Parkinson's Disease Neuropathic Pain Hematologic Tumors Solid Tumors Rheumatoid Arthritis GI Disorders Lupus Congestive Heart Failure Pulmonary Arterial Hypertension Factor VIII Factor IX Pipeline Commer
Slide 18: R&D Investments Focus on Specialty Markets
R&D Investments Focus on Specialty Markets Offering Superior Economics Degree of Unmet Need Market Type General Practitioner Specialty High Market Size (Today vs. 2012) $2B $1B RA Lupus Hemophilia MS CLL Low CHF CHF CLL Hemophilia Lupus MS RA Today 1.9 0.3 4.3 0.4 6.0 6.5 2012 2.1 1.0 6.0 2.5 10.0 1
Slide 19: Growth Beyond 2010
Growth Beyond 2010 PC/Ph. 1 Registrational or Filing Internally Sourced Externally Sourced Factor IX Hem B Factor VIII Hem A Neublastin Neuropathic Pain Anti-CD40L Fab SLE Adentri CHF Aviptadil PAH BIIB14 PD CDP323 MS Daclizumab MS HSP90i GIST Volociximab Ovarian TYSABRI(r) Multiple Myeloma BG-12 MS
Slide 20: Building Pipeline with Efficient Use of Cash
Building Pipeline with Efficient Use of Cash Recent BD Deals Upfront Payments $220M $140M $30M $7.5M $150M $40M $50M Future Potential Payments Up to $315M Up to $660M Up to $239M Up to $30M Up to $100M Up to $80M Up to $170M > 10 molecules ~$1.6B Less than $640M Year Completed 2003/2006 2005 2006 20
Slide 21: Growth Beyond 2010: Expected Data Readouts
Growth Beyond 2010 Expected Data Readouts PC/Ph. 1 Registrational or Filing Internally Sourced Externally Sourced Factor IX Hem B Factor VIII Hem A Neublastin Neuropathic Pain Anti-CD40L Fab SLE Adentri CHF Aviptadil PAH BIIB14 PD CDP323 MS Daclizumab MS HSP90i GIST Volociximab Ovarian TYSABRI(r) Mu
Slide 22: Discovery Engine with Demonstrable Results
Discovery Engine with Demonstrable Results TWEAK Program Recently discovered inflammation pathway may play an important role in the disease process that causes RA LINGO Program Anti-LINGO-1 antibody can promote spinal cord remyelination and axonal integrity in preclinical studies Potential role as a
Slide 23: Biogen Idec's Strategy
Significant Products Global Specialty Markets High Unmet Need Biogen Idec's Strategy Advance pipeline and expand TAs Expand geographic reach Develop and Commercialize Blockbuster Brands Advance world class biologics development and manufacturing capabilities Deliver strong financial performance Exec
Slide 24: Agenda
Agenda Business Review & Outlook Strategy & Fundamentals 2008 Guidance
Slide 25: 2008 Financial Guidance
2008 Financial Guidance 15 to 20% revenue growth over 2007 Increasing leverage of operating margins R&D: 26-28% of revenue SG&A: 21-23% of revenue Operating Expenses: $1.9 - 2.0 Billion Excluding TYSABRI collaboration profit share Non-GAAP tax rate expected to be 28% - 30% GAAP EPS guidance $2.23 -
Slide 26: Jim Mullen, CEO, Merrill Lynch Healthcare Conference
Jim Mullen, CEO Merrill Lynch Healthcare Conference New York, NY February 7, 2008
Slide 27: GAAP to non-GAAP Reconciliation 2003-2007
GAAP to non-GAAP Reconciliation 2003 -2007 Diluted EPS and Net Income Notes: The non-GAAP financial measures presented in this table are utilized by Biogen Idec management to gain an understanding of the comparative financial performance of the Company. Our non- GAAP financial measures are defined a
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