Biogen Inc. · NASDAQ:BIIB
Biogen — Biogen Idec — Q4 2007 Earnings Presentation
38 slides from Biogen's earnings presentation, Feb 6, 2008
Slide 1: Biogen Idec Q4 2007 Earnings Conference Call and Webcast
Biogen Idec Q4 2007 Earnings Conference Call and Webcast February 6th 2008
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements about: our 2008 guidance and our financial and operational goals through 2010 the sales potential of TYSABRI(r) (natalizumab) the anticipated development and timing of programs in our clinical pipeline our expected filings w
Slide 3: Proxy Communication Statement
Proxy Communication 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: Q4 2007 Earnings Call Agenda
Q4 2007 Earnings Call Agenda Introduction Elizabeth Woo, Investor Relations Overview Jim Mullen, CEO MS Franchise Update Bill Sibold, Senior Vice President, US Neurology R&D Update Cecil Pickett, President R&D Financial Performance Paul Clancy, CFO Q&A
Slide 5: Business Overview
James Mullen Chief Executive Officer Business Overview
Slide 6: 2007 Overview
2007 Overview Product Performance AVONEX worldwide revenues of $1.868 billion, +9% yoy Revenues to BIIB from RITUXAN(r) of $926 million, +17% yoy TYSABRI(r) global end user sales exiting Q4 at run rate exceeding $500 million annually. Financial Performance 2007: Revenues +18% yoy, non-GAAP EPS +22%
Slide 7: Strong Commercial Foundation
2004 2005 2006 2007 AVONEX 1417.2 1543.1 1706.7 1867.8 RITUXAN 615.7 708.9 810.9 926 TYSABRI 3.1 4.7 35.8 229.8 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 $3.9B in 2006 gl
Slide 8: Biogen Idec Financial Performance
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 Financial Performance Revenue and Non-GAAP EPS CAGR 14% CAGR 22% CAGR 2003 - 2007 CAGR Goal Revenue = 15% Non-GAAP EPS = 20% Revenue Non-GAAP EPS $2.74 (+22% Y/Y) $1.22 $1.9B $3.17B (
Slide 9: Building Pipeline with Efficient Use of Cash
Building Pipeline with Efficient Use of Cash Recent Business Development 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
Slide 10: $3 billion returned to shareholders at Dutch Auction
$3 billion returned to shareholders at Dutch Auction Accept for payment an aggregate of 56.4 million shares Purchase price of $53 per share Aggregate share repurchase of $3 billion Represented 16.4% of shares outstanding <$640 million upfront access to 10+ compounds Divestment of non-core products a
Slide 11: MS Franchise Update
Bill Sibold Senior Vice President MS Franchise Update
Slide 12: Leading Multiple Sclerosis Franchise
Leading Multiple Sclerosis Franchise AVONEX(r) - #1 prescribed MS therapy worldwide TYSABRI(r) - New level of efficacy Pipeline - Best and broadest for the future
Slide 13: AVONEX: Most prescribed MS therapy
Most prescribed MS therapy & 11 years as market leader Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 AVONEX U.S. Sales (in $ millions) 261 270 269.6 266.4 279 AVONEX International Sales (in $ millions) 178 179 192 189 223.5 +15% Global Revenue Growth AVONEX(r) ... Disrupts Disease Not Patients' Lives
Slide 14: TYSABRI Safety and Utilization
TYSABRI Safety and Utilization Utilization as of Late December 2007: Over 21,000 patients on TYSABRI therapy worldwide U.S. Commercial: ~12,900 patients on commercial therapy International Commercial: ~7,500 patients on commercial therapy Clinical Trials: ~700 patients on therapy in clinical trials
Slide 15: TYSABRI U.S. Source of Patients Since Launch
TYSABRI(r) U.S. Source of Patients Since Launch ~4 out of 5 TYSABRI(r) patients in the US are new to the Biogen Idec MS franchise Avonex BCRs Non-ABCRs East 1 2.25 1.75 AVONEX(r) 21% Switchers from BETASERON(r), COPAXONE(r) and REBIF(r) 44% New to Market 35% Includes Returning quitters Non-ABCR ther
Slide 16: TYSABRI Approved in Over Countries
TYSABRI(r) Approved in Over 30 Countries - Austria - Denmark - Iceland - Malta - Slovakia - Australia - Estonia - Ireland - Netherlands - Slovenia - Belgium - Finland - Israel - New Zealand - Spain - Bulgaria - France - Italy - Norway - Switzerland - Canada - Germany - Latvia - Poland - Sweden - Cyp
Slide 17: TYSABRI Global Sales
TYSABRI(r) Global Sales TYSABRI End Patient Revenue Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 U.S. 5.4 23 35.8 46.8 58.5 76.4 International 2.7 7.2 12.7 25.2 34.8 52.7 $30 $500 million annual run rate $8 $48 $72 $93 $129
Slide 18: TYSABRI Crohn's Disease
TYSABRI Crohn's Disease TYSABRI(r) approved in US on January 14th 2008 Approved for inducing and maintaining clinical response and remission in adult patients with moderately to severely active Crohn's disease (CD) with evidence of inflammation who have had an inadequate response to, or are unable t
Slide 19: R&D Update
Cecil Pickett President R&D R&D Update
Slide 20: Clinical Pipeline Progress
Clinical Pipeline Progress Positive regulatory decisions TYSABRI(r) CD sBLA approval in US RITUXAN(r) TNF-IR RA slow the progression of structural damage sBLA approval in US Positive data readouts RITUXAN(r) Phase 3 SERENE study in DMARD-IR RA met primary endpoint RITUXAN(r) Phase 3 SUNRISE re-treat
Slide 21: Clinical Pipeline Progress Continued
Clinical Pipeline Progress Continued Selected ongoing programs with data readout expected in 2008 RITUXAN(r) Phase 3 OLYMPUS study in primary progressive MS RITUXAN(r) Phase 3 EXPLORER study in systemic lupus erythematosus RITUXAN(r) Phase 3 REACH study in chronic lymphocytic leukemia Baminercept al
Slide 22: Baminercept Phase 2a Data
Baminercept Phase 2a Data Dual-mechanism, lymphotoxin-b and LIGHT pathway inhibitor Presented Phase 2a data as poster at ACR meeting on November 9th Clinically meaningful ACR responses 8 weeks after the final 4th weekly SC dose Phase 2b RA program ongoing 380 patient DMARD-IR dose ranging trial 120
Slide 23: Pipeline Drives Growth Beyond 2010
Pipeline Drives Growth Beyond 2010 Data Readouts Through Year End 2008 PC/Ph. 1 Registrational and Filing Internally Sourced Externally Sourced Proof of Concept/Ph. 2 15 Programs in Ph. 2 or Beyond Anti-CRIPTO Solid Tumors Anti-TWEAK RA Avonex UC RAF Solid Tumors Factor IX Hem B Factor VIII Hem B Ne
Slide 24: Biogen Idec Pipeline
Anti-IGF-1R (BIIB022) Solid Biogen Idec Pipeline Collaboration and Partnered Programs Phase 1 Market RITUXAN Ocrelizumab (2nd gen. anti-CD20 MAb) Phase 2 Phase 3 Pre-Clinical LTbR-Ig (Baminercept) RITUXAN Rheumatoid arthritis TYSABRI Crohn's disease FUMADERM Anti-CD40L Anti-TWEAK Psoriasis Lupus (SL
Slide 25: Financial Performance
Paul Clancy Chief Financial Officer Financial Performance
Slide 26: Q4 2007 Financial Performance
Q4 2007 Financial Performance Q4 2007 revenue growth of 26% year over year Surpassed full year 2007 guidance Recently issued 2008 financial guidance consistent with 2010 goals
Slide 27: AVONEX & RITUXAN Revenue Growth
AVONEX(r) & RITUXAN(r) Revenue Growth Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 AVONEX Worldwide Sales (in $ millions) 439 449 461.6 454.9 502.5 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 BIIB Revenue (in $ millions) 218 207 230.6 234.6 253.7 US Net Sales (in $ millions) 560 535 582 572 596 AVONEX(r) RITUXAN(r) +15% +17% +6
Slide 28: Q4 2007 Financial Worksheet: Revenues
Q4 2007 Financial Worksheet Revenues ($ millions) Q4 06 Q4 07 %D 2006 2007 %D Notes AVONEX(r) U.S. Revenues $261 $279 7% $1,022 $1,085 6% AVONEX(r) International Revenues $178 $224 26% $685 $783 14% Total AVONEX(r) Sales $439 $503 15% $1,707 $1,868 9% TYSABRI(r) Revenue to BIIB1 $18 $90 400% $36 $23
Slide 29: Q4 2007 Financial Worksheet: Costs and Expenses
Q4 2007 Financial Worksheet Costs and Expenses ($ millions) Q4 06 Q4 07 %D 2006 2007 %D Notes Non-GAAP Cost of Sales1 $62 $88 41% $266 $335 26% % of Product Sales 13.4% 14.6% 14.9% 15.7% Non-GAAP R&D Expenses2 $197 $226 15% $699 $911 30% % of Total Revenues 27.8% 25.3% 26.1% 28.7% Non-GAAP SG&A Expe
Slide 30: Q4 2007 Financial Worksheet: Other Selected Financials
Q4 2007 Financial Worksheet Other Selected Financials ($ millions except EPS) Q4 06 Q4 07 %D 2006 2007 %D Notes Other income, net1 ($11) ($2) na $52 $59 13% Non-GAAP Tax Rate2 29.8% 29.2% 31.0% 27.8% Non-GAAP Net Income3 $184 $266 45% $777 $879 13% Weighted average shares used in calculating diluted
Slide 31: Maintaining Financial Guidance
Maintaining Financial Guidance Financial guidance for 2008 First Issued 2008 Financial Guidance on January 7, 2008 15% to 20% revenue growth over 2007 Increasing leverage of operating margins Non-GAAP R&D: 26-28% of revenue Non-GAAP SG&A: 21-23% of revenue Non-GAAP Tax rate expected to be 28% - 30%
Slide 32: 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 33: 2007 to 2010 Financial Goals
2007 to 2010 Financial Goals 15% revenue compound annual growth rate 20% non-GAAP EPS compound annual growth rate 25% GAAP EPS compound annual growth rate Pipeline positioned to sustain this growth Note: The EPS references in this slide are to non-GAAP EPS. FY 2007 Non-GAAP EPS excludes purchase acc
Slide 34: Summary
James Mullen Chief Executive Officer Summary
Slide 35: Summary
Summary Drivers of 2008 performance: Overall MS franchise growth Increasing depth & breadth of TYSABRI(r) usage in US & ROW Pipeline Progress Growth through internal programs & business development Clinical execution in 2007 & data readouts in 2008 Focused on 2010 goals 2008 financial guidance in li
Slide 36: Questions & Answers
biogen idec Questions & Answers
Slide 37: GAAP to non-GAAP Reconciliation: Q4 & FY 2007
GAAP to non-GAAP Reconciliation Diluted EPS and Net Income: Q4 & FY 2007 Note: Numbers may not foot due to rounding.
Slide 38: GAAP to non-GAAP Reconciliation: Five Year History
GAAP to non-GAAP Reconciliation Diluted EPS and Net Income: Five Year History 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 d