Biogen Inc. · NASDAQ:BIIB
Biogen — Q3 2014 Earnings Presentation
33 slides from Biogen's earnings presentation, Oct 22, 2014
Slide 1: Third Quarter 2014 Financial Results & Business Update
TITLE OF PRESENTATION THIRD QUARTER 2014 FINANCIAL RESULTS & BUSINESS UPDATE OCTOBER 22, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including statements about timing of product launches, anticipated regulatory filings and approvals, reimbursement decisions, anticipated data readouts and 2014 financial guidance. These forward-looking statements may
Slide 3: Q3 2014 Earnings Call Agenda
Q3 2014 Earnings Call Agenda INTRODUCTION: CLAUDINE PROWSE, Ph.D., VP, Investor Relations OVERVIEW & R&D UPDATE: GEORGE SCANGOS, Ph.D., Chief Executive Officer COMMERCIAL UPDATE: TONY KINGSLEY, EVP, Global Commercial Operations FINANCIAL PERFORMANCE: PAUL CLANCY, EVP, Chief Financial Officer 3
Slide 4: Overview
TITLE OF PRESENTATION OVERVIEW GEORGE SCANGOS, Ph.D., CHIEF EXECUTIVE OFFICER
Slide 5: Q3 2014 Financial Performance
Q3 2014 Financial Performance Non-GAAP Diluted EPS ($)* +37% +46% 2,511 2,117 3.80 2.35 1,828 1,454 Q3-13 Q3-14 GAAP Diluted EPS ($)* 3.62 Q3-13 Q3-14 Q3-13 Q3-14 2.05 Total Revenues ($M) Product Revenues ($M) Q3-13 Q3-14 *A RECONCILIATION OF OUR GAAP TO NON-GAAP FINANCIAL RESULTS IS AT THE END OF T
Slide 6: Q3 2014 Highlights
Q3 2014 Highlights PRODUCT PERFORMANCE RECENT PRODUCT LAUNCHES Strong financial performance driven by a growing PLEGRIDY has potential to extend our leadership patient base for our MS Franchise position within interferons Launched in Germany and Denmark 37% growth in revenues and 61% growth in non
Slide 7: Significant Presence at ACTRIMS/ECTRIMS
Significant Presence at ACTRIMS/ECTRIMS* More than 90 company-sponsored presentations demonstrate continued leadership in MS TECFIDERA ZINBRYTA Five-year data from ENDORSE long- Detailed results from the Phase 3 term extension study for TECFIDERA DECIDE study for ZINBRYTA demonstrated strong and sus
Slide 8: Deep Pipeline
Deep Pipeline PHASE I PHASE II PHASE III FILED Late-Stage ZINBRYTA* Multiple Sclerosis POSITIVE TOP LINE RESULTS TYSABRI Secondary Progressive Multiple Sclerosis GAZYVA* Diffuse Large B-Cell Lymphoma GAZYVA* Indolent Non-Hodgkin’s Lymphoma (Refractory & Frontline) ISIS-SMNRx* Spinal Muscular Atrophy
Slide 9: Commercial Update
TITLE OF PRESENTATION COMMERCIAL UPDATE TONY KINGSLEY, EXECUTIVE VICE PRESIDENT, GLOBAL COMMERCIAL OPERATIONS
Slide 10: Global MS Franchise Performance
Global MS Franchise Performance MS Franchise Sales ($M) +43% 2,030 2,054 1,727 1,593 700 787 1,438 506 398 286 1 533 2 427 441 501 401 3 733 751 761 774 742 17 17 19 22 20 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 FAMPYRA AVONEX PLEGRIDY TYSABRI TECFIDERA Note: Numbers may not foot due to rounding. 1. Q2’14 TYS
Slide 11: Strong TECFIDERA Launch
Strong TECFIDERA Launch TECFIDERA Revenue ($M) Q3 2014 Highlights Revenue vs. Q2 2014 WW + 12% US + 9% 787 ROW + 29% 700 149 TECFIDERA’s broad use continues 115 506 Year to date, capturing ~ 1/3 of new patient starts and > 40% of switches in the US 398 46 286 7 Ex-US, Germany was the primary revenue
Slide 12: Global Interferon Performance
Global Interferon Performance Interferon Revenues ($M) Q3 2014 Highlights Total Interferon Revenue vs. Q2 2014 & Q3 2013 WW -4% and +2% 774 US -3% and +6% 751 761 745 733 ROW -5% and -5% 3 276 Total Interferon Units vs. Q2 2014 & Q3 2013 277 285 260 277 WW -5% and -5% US -5% and -5% ROW -4% and -5%
Slide 13: Plegridy US Launch Expected in Early November
Plegridy US Launch Expected in Early November PLEGRIDY has potential to become the interferon of choice Strong efficacy Favorable safety profile Sub-Q administration every two weeks Prepared for US launch Sales force training Specialty pharmacy contracts Financial and patient support programs 13
Slide 14: Global TYSABRI Performance
Global TYSABRI Performance TYSABRI Revenue ($M) Q3 2014 Highlights Revenue vs. Q2 2014 & Q3 2013 533 WW -6% and +25% 501 US +10% and +19% ROW -20% and +34% 441 427 401 Units vs. Q2 2014 & Q3 2013 1 284 226 WW +6% and +16% 176 207 US +6% and +9% 169 ROW +6% and +21% Demand solid, and patient retentio
Slide 15: ELOCTATE Launch Update
ELOCTATE Launch Update Q3 2014 Highlights $22M Revenue in Q3 2014 Solid start since commercial launch in July High awareness and patient interest ~ 10 weeks into launch, 50% of all HTC’s have prescribed ELOCTATE Reimbursement progressing according to plan Leveraging learnings from ALPROLIX to ensure
Slide 16: ALPROLIX Launch Update
ALPROLIX Launch Update ALPROLIX Revenue ($M) Q3 2014 Highlights 25 0.2 High awareness and high patient interest ~ 5 months into launch, 55% of all HTC’s have prescribed ALPROLIX Most patients starting with 1x/week prophylactic 25 dosing schedule and majority have been existing 10 prophylactic patien
Slide 17: Financial Performance
TITLE OF PRESENTATION FINANCIAL PERFORMANCE PAUL CLANCY, EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Slide 18: Q3 2014 GAAP to Non-GAAP Reconciliation
Q3 2014 GAAP to Non-GAAP Reconciliation Q3 2014 YTD GAAP Diluted EPS $3.62 $8.64 GAAP Net Income Attributable to Biogen Idec Inc. ($M) $856.9 $2,051.3 Amortization of Intangibles ($M) 118.7 371.5 Contingent Consideration ($M) (49.4) (46.2) Stock Option Expense ($M) 2.6 10.2 Donation to Biogen Idec F
Slide 19: Q3 2014 Financial Results Summary: Revenues 1 of 2
Q3 2014 Financial Results Summary: Revenues 1 of 2 $ in Millions Q3 Q2 Q3 %D %D 2013 2014 2014 Q/Q Y/Y AVONEX US $457 $498 $482 (3%) 6% AVONEX ROW $277 $276 $260 (6%) (6%) Total AVONEX Sales1 $733 $774 $742 (4%) 1% PLEGRIDY US $0 $0 $0 NMF NMF PLEGRIDY ROW $0 $0 $3 NMF NMF Total PLEGRIDY Sales $0 $0
Slide 20: Q3 2014 Financial Results Summary: Revenues 2 of 2
Q3 2014 Financial Results Summary: Revenues 2 of 2 $ in Millions Q3 Q2 Q3 %D %D 2013 2014 2014 Q/Q Y/Y ALPROLIX US $0 $10 $25 141% NMF ALPROLIX ROW $0 $0 $0 NMF NMF Total ALPROLIX Sales $0 $10 $25 143% NMF ELOCTATE US $0 $0 $22 NMF NMF ELOCTATE ROW $0 $0 $0 NMF NMF Total ELOCTATE Sales $0 $0 $22 NMF
Slide 21: RITUXAN & GAZYVA Performance
RITUXAN & GAZYVA Performance RITUXAN & GAZYVA Results ($M) 947 917 Q3 2014 Highlights 876 891 952 Revenue vs. Q3 2013 and Q2 2014 806 852 US Net Sales -3% and +3% US Profit Share1 -4% and -5% ROW Royalty -7% and +10% BIIB Revenue -4% and -4% Q3 2014 profit share reduced by ~$21M due 303 297 to chang
Slide 22: Q3 2014 Financial Results Summary
Q3 2014 Financial Results Summary $ in Millions %D %D Q3 2013 Q2 2014 Q3 2014 Q/Q Y/Y Cost of Sales1 $235 $292 $303 (4%) (29%) % of Total Revenues 13% 12% 12% Non-GAAP R&D $409 $446 $416 7% (2%) Expenses2 % of Total Revenues 22% 18% 17% Non-GAAP SG&A $404 $540 $569 (5%) (41%) Expenses3,4 % of Total
Slide 23: Q3 2014 Financial Results Summary
Q3 2014 Financial Results Summary $ in Millions except EPS Q3 Q2 Q3 %D %D Shares in millions 2013 2014 2014 Q/Q Y/Y Other income (expense), net1 ($5) $5 ($16) NMF NMF Non-GAAP Tax Rate2 27% 27% 25% Equity in Loss of Investee, net of tax3 $6 $2 $5 NMF NMF Net Income (loss) Attributable to Non Control
Slide 24: 2014 Full Year Financial Guidance Update
2014 Full Year Financial Guidance Update Expense ratios apply to both GAAP and Prior FY 2014 Updated FY 2014 Comments Non-GAAP 2014 Full Year Guidance. Guidance Guidance Approximately Approximately Revenue Growth Unchanged 38 to 41% 38 to 41% R&D Expense Now includes approximately $50M 20 to 21% 20
Slide 25: Biogen Idec
TITLE OF PRESENTATION BIOGEN IDEC GEORGE SCANGOS, Ph.D., CHIEF EXECUTIVE OFFICER
Slide 26: Biogen Idec: Focused on Execution
Biogen Idec: Focused on Execution Strategy for sustainable growth Expand our leadership position in MS Actively launching four products Deep commitment to the patient Continuing to focus on innovation 26
Slide 27: Questions & Answers
BIOGEN TITLE OFIDEC PRESENTATION QUESTIONS & ANSWERS
Slide 28: Appendix
BIOGEN TITLE OFIDEC PRESENTATION APPENDIX
Slide 29: Neurology Late Stage Programs
Neurology Late Stage Programs Molecule ISIS-SMNRx1 TYSABRI ZINBRYTA OCRELIZUMAB2 Trial Name ENDEAR ASCEND DECIDE OPERA I OPERA II ORATORIO Phase Phase III Phase IIIb Phase III Phase III Phase III Phase III Infantile-onset Spinal Indication Muscular Atrophy SPMS RMS RMS RMS PPMS (SMA) Administration
Slide 30: Hemophilia Late Stage Programs
Hemophilia Late Stage Programs Molecule ALPROLIX ELOCTATE Trial Name B-LONG KIDS B-LONG A-LONG KIDS A-LONG Phase Phase III Phase III Phase III Phase III Indication Hemophilia B Hemophilia B Hemophilia A Hemophilia A Administration IV Infusion IV Infusion IV Infusion IV Infusion Target 123 ~20 ~150 ~
Slide 31: Anti-CD20 Late Stage Programs
Anti-CD20 Late Stage Programs Molecule GAZYVA Trial Name CLL11 GOYA GADOLIN GALLIUM Phase Phase III Phase III Phase III Phase III Rituxan-refractory indolent Front-line Chronic Front-line Diffuse Large B- Front-line iNHL Indication Non Hodgkin’s Lymphoma Lymphocytic Leukemia cell lymphoma (DLBCL) w/
Slide 32: Q3 2014 Impact of Foreign Exchange
Q3 2014 Impact of Foreign Exchange COMPARED WITH THE SAME QUARTER OF LAST YEAR Q3 2014 FX / Hedge Impact Favorable / (Unfavorable) Total Revenue $2,511 $12* 0% Cost of Sales $303 $(0) (0)% Non-GAAP R&D $416 $(2) (0)% Expenses Non-GAAP SG&A $569 $0 0% Expenses Note: Amounts are in ($) Millions. See e
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation TABLE 3 Use of Non-GAAP Financial Measures We supplement our consolidated financial statements presented on Biogen Idec Inc. and Subsidiaries a GAAP basis by providing additional measures which may be GAAP to Non-GAAP Reconciliation: Net Income and Net Income Per Shar