Slide 1: Biogen Idec Q1 2008 Earnings Conference Call and Webcast
Biogen Idec Q1 2008 Earnings Conference Call and Webcast April 23rd 2008
Slide 2: Forward-looking statements
This presentation includes forward-looking statements about: our 2008 guidance and our financial and operational goals through 2010 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 regu
Slide 3: Q1 2008 Earnings Call Agenda
Q1 2008 Earnings Call Agenda Introduction Elizabeth Woo, Vice President, Investor Relations Overview Jim Mullen, Chief Executive Officer MS Franchise Update Bill Sibold, Senior Vice President, US Neurology R&D Update Cecil Pickett, President R&D Financial Performance Paul Clancy, Chief Financial Off
Slide 4: Business Overview
James Mullen Chief Executive Officer Business Overview
Slide 5: Q1 2008 Overview
Q1 2008 Overview Robust Financial Performance Revenues +32% y/y GAAP diluted EPS +42% y/y Non-GAAP diluted EPS +41% y/y Outstanding Product Performance Revenues to BIIB from RITUXAN(r) of $247 million, +19% y/y AVONEX worldwide revenues of $536 million, +19% y/y TYSABRI(r) global end user sales exit
Slide 6: MS Franchise Update
Bill Sibold Senior Vice President MS Franchise Update
Slide 7: 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 8: Most prescribed MS therapy & years as market leader
Most prescribed MS therapy & 11 years as market leader Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 AVONEX U.S. Sales (in $ millions) 261 270 269.6 266.4 279 308 AVONEX International Sales (in $ millions) 178 179 192 189 223.5 228 +19% Global Revenue Growth AVONEX(r) ... Disrupts Disease Not Patients' Lives
Slide 9: TYSABRI Safety and Utilization
TYSABRI(r) Safety and Utilization Utilization as of end of March 2008: Over 26,000 patients on TYSABRI(r) therapy worldwide U.S. Commercial: ~15,300 patients on commercial therapy International Commercial: >10,200 patients on commercial therapy Clinical Trials: >600 patients on therapy in clinical t
Slide 10: 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) 20% Switchers from BETASERON(r), COPAXONE(r) and REBIF(r) 45% New to Market 35% Includes Returning quitters Non-ABCR ther
Slide 11: TYSABRI approved in more than countries
TYSABRI(r) approved in more than 30 countries Launched countries listed in dark blue Launched in 24 countries:
Slide 12: TYSABRI Global Sales
TYSABRI(r) Global Sales TYSABRI End Patient Revenue Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 U.S. 5.4 23 35.8 46.8 58.5 76.4 86.3 International 2.7 7.2 12.7 25.2 34.8 52.7 73.4 $30 >$600 million annual run rate $8 $48 $72 $93 $129 $160
Slide 13: R&D Update
Cecil Pickett President R&D R&D Update
Slide 14: Recent Clinical Pipeline Progress
Recent Clinical Pipeline Progress New indication launch TYSABRI(r) for Crohn's disease launched in US Data readouts RITUXAN(r) Phase 3 OLYMPUS study in PPMS missed primary endpoint TYSABRI(r) PLEX study of plasma exchange more rapidly restored leukocyte transmigration ex vivo TYSABRI(r) safety and u
Slide 15: Recent Pipeline Progress Continued
Recent Pipeline Progress Continued Other pipeline progress Enrollment completed RITUXAN(r) Phase 3 LUNAR in lupus nephritis Baminercept alfa Ph2b RESPOND in DMARD-IR RA First Patient enrolled Daclizumab Phase 2 SELECT monotherapy in RRMS Volociximab Phase 2 combination in ovarian cancer Hsp90i Phase
Slide 16: Pipeline Data Readouts Expected for 2008
Pipeline Data Readouts Expected for 2008 H1 2008 H2 2008 Ph. 2b Ph. 2a Ph. 1/2 Ph. 1/2 Ph. 2 Ph. 3 Baminercept alfa RA BIIB14 Parkinson's Disease rFactor IX Hemophilia Hsp90i GI Stromal Tumors Volociximab Ovarian RITUXAN(r) CLL RITUXAN(r) RA DMARD IR RITUXAN(r) PPMS RITUXAN(r) Lupus (SLE) Ph. 3 Ph.
Slide 17: Systemic Lupus Erythematosus in the US
Systemic Lupus Erythematosus in the US Chronic autoimmune disorder which may affect virtually any part of the body and can range in severity from mild to life-threatening ~30% have renal involvement Average of 2.6 organs involved An estimated 425,000 diagnosed patients in US High unmet need due to l
Slide 18: Biogen Idec Pipeline
Biogen Idec Pipeline Market Phase 1 Phase 2 Phase 3 Pre-Clinical Daclizumab LINGO CDP323 AVONEX TYSABRI RITUXAN/ Ocrelizumab BG-12 BIIB014 Neublastin RITUXAN Ocrelizumab (2nd gen. anti-CD20 MAb) LTbR-Fc (Baminercept) RITUXAN TYSABRI FUMADERM Anti-CD40L Anti-TWEAK IMMUNOLOGY Multiple sclerosis Multip
Slide 19: Financial Performance
Paul Clancy Chief Financial Officer Financial Performance
Slide 20: Q1 2008 Financial Performance
Q1 2008 Financial Performance Revenue growth of 32% year over year GAAP diluted EPS growth of 42% year over year Non-GAAP diluted EPS growth of 41% year over year Raising 2008 financial guidance On track for achieving 2010 goals Note: See Table 3 from Biogen Idec's Q1'08 earnings press release or sl
Slide 21: AVONEX & RITUXAN Revenue Growth
AVONEX(r) & RITUXAN(r) Revenue Growth Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 AVONEX Worldwide Sales (in $ millions) 439 449 461.6 454.9 502.5 536.1 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 BIIB Revenue (in $ millions) 218 207 230.6 234.6 253.7 247 US Net Sales (in $ millions) 560 535 582 572 596 605 AVONEX(
Slide 22: Robust Products
Robust Products 2004 2005 2006 2007 2008E Based on Q1-08 Run Rate AVONEX 1417.2 1543.1 1706.7 1867.842 2144 RITUXAN 615.7 708.9 810.9 926.098 989 TYSABRI 3.1 4.7 35.8 229.844 459 Revenue to Biogen Idec Expand into new geographic regions Maintain competitive position in the "ABCR" market Increase pen
Slide 23: Q1 2008 Financial Worksheet: Revenues
Q1 2008 Financial Worksheet Revenues ($ millions) Q1 2007 Q1 2008 %D Notes AVONEX(r) U.S. Revenues $270 $308 14% AVONEX(r) International Revenues $179 $228 27% Total AVONEX(r) Sales $449 $536 19% TYSABRI(r) Revenue to BIIB $30 $115 283% Total Product Sales $484 $665 37% Revenue from Unconsolidated J
Slide 24: Q1 2008 Financial Worksheet: Costs and Expenses
Q1 2008 Financial Worksheet Costs and Expenses ($ millions) Q1 2007 Q1 2008 %D Notes Non-GAAP Cost of Sales1 $82 $101 23% % of Product Sales 16.9% 15.2% Non-GAAP R&D Expenses2 $188 $255 36% % of Total Revenues 26.3% 27.1% Non-GAAP SG&A Expenses3 $182 $213 17% % of Total Revenues 25.4% 22.6% Collabor
Slide 25: Q1 2008 Financial Worksheet: Other Selected Financials
Q1 2008 Financial Worksheet Other Selected Financials ($ millions except EPS) Q1 2007 Q1 2008 %D Notes Other income, net1 $22 ($0.5) na Non-GAAP Tax Rate2 30.4% 28.9% Non-GAAP Net Income3 $202 $250 24% Weighted average shares used in calculating diluted EPS (millions) 344.1 299.5 Non-GAAP EPS3 $0.59
Slide 26: Financial Guidance
Financial Guidance Raising guidance for 2008 Total revenue growth of approximately 20% over 2007 as TYSABRI market penetration continues Operating expenses Margins similar to previous guidance Total non-GAAP R&D and SG&A expenses to be in the range of $2 billion Non-GAAP tax rate expected to be 28%
Slide 27: Questions & Answers
biogen idec Questions & Answers
Slide 28: GAAP to non-GAAP Reconciliation: Q1 2008
GAAP to non-GAAP Reconciliation Diluted EPS and Net Income: Q1 2008
Slide 29: 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