Slide 1: Biogen Idec Investor Presentation Spring 2009
Biogen Idec Investor Presentation Spring 2009
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 • Consistently delivered strong EPS and revenue growth over the last 5 years Financial • 2008 results exceeded guidance Performance • Solid growth projected for 2009; Q1 revenues +10% y/y, non-GAAP EPS +27% y/y • Overseen successful merger and delivered o
Slide 4: Agenda
Agenda • Results and Accountability • Drivers of Shareholder Value • Corporate Governance
Slide 5: Consistently Strong Track Record
Consistently Strong Track Record Revenue ($ Billions) EPS ($) Free Cash Flow ($ Millions) +17% 4.1 +25% 3.66 +37% 1,289 CAGR CAGR CAGR 3.2 2.74 2.7 2.25 2.4 737 2.2 643 1.9 571 1.57 1.40 1.22 367 15% ’03-’07 20% ’03-’07 Goal Goal 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 2004 2005
Slide 6: Diversified and Growing Portfolio
Diversified and Growing Portfolio Revenue By Product $ Billions +17% 4.1 CAGR 0.2 Other Revenue 0.6 TYSABRI 3.2 US RITUXAN 0.8 2.7 Profit Share 2.4 ROW RITUXAN 0.3 2.2 Revenues 1.9 0.2 0.4 0.1 2.2 AVONEX 1.2 (1) 2003 2004 2005 2006 2007 2008 Note: Note: 2003 amounts represent pro forma information o
Slide 7: Growing Pipeline Across All Phases
Growing Pipeline Across All Phases Robust Growth Across all Phases Number of Total Programs of the Pipeline . . . • In the past 5 years Biogen has added: • 18 programs at the discovery level +23% 73 CAGR • 23 early stage programs • 5 late stage programs 59 47 . . . Driven by Efficient Spend and 45 3
Slide 8: Achieving Our 2010 Goals
Achieving Our 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-AVON
Slide 9: External Validation
External Validation PRODUCTS • 2008 Best in Brand Comeback Award (TYSABRI) • 2008 Pharmaceutical Executive Ad Stars Patient Power (TYSABRI) PIPELINE • Ranked #1 Late-Stage Pipeline Quality • Ranked #4 Pipeline Diversity PEOPLE • Biogen Idec, International ranked fourth overall, second in pharma/biot
Slide 10: Biogen Idec Stock Performance
Biogen Idec Stock Performance (as of Record Date*) Biogen Idec Has Outperformed Both the BTK and S&P 500 Since the 2003 Merger Biogen Idec Stock Price History $85 CAGR $80 $75 BIIB BTK S&P 500 $70 Since $65 8% 6% -4% $60 Merger $55 75 $50 58 5 Years -2% 3% -6% $45 $40 $35 48 43 3 Years 4% - -3% -14%
Slide 11: Winning Strategy
Winning Strategy • Specialty markets with significant needs Global • First-in-class or best-in-class molecules Footprint Expanding 2006 • Global 2007-2008 2011-2012 2013+
Slide 12: Transforming Discovery Into Care
Transforming Discovery Into Care Leading worldwide therapy for MS Breakthrough MS therapy –Powerful Efficacy Standard of care for NHL
Slide 13: Strategy Drives Economic Model
Strategy Drives Economic Model Operating Profit Margin (2008 Actual) 53% 41% 39% 37% Biotech Avg: 38% 22% Big Pharma Avg(1): 27% Biogen Idec Amgen Gilead Celgene Genzyme* Biotech Big Pharma 2008 Actual (Non-GAAP) Avg Avg(1) COGS/Revenues 10% 15% 21% 10% 24% 16% 24% R&D/Revenues 26% 19% 12% 24% 27% 2
Slide 14: Drivers of Shareholder Value
Drivers of Shareholder Value Accelerate Extend AVONEX 2 and RITUXAN 1 TYSABRI Growth through Lifecycle Management SHAREHOLDER VALUE Leverage 3 Excess Cash 4 Advance Our in a Disciplined Robust Pipeline Manner
Slide 15: TYSABRI Trajectory
TYSABRI Trajectory TYSABRI $900 million Annual Run Rate Monthly Global Revenue Trajectory Post Launch 100,000 Top 20 Biologic Drugs ($ Revenues in Billions) 90,000 Enbrel $6.5B Avonex $2.2B 80,000 ) Novolin 2.0B 0 Remicade 5.3B 00 70,000 $ Epogen/Procrit 5.1B Lucentis 1.8B S U ( Rituxan 5.1B Humalog
Slide 16: Physician Confidence Returning
Physician Confidence Returning TYSABRI’s Benefits Outweigh the Risk It Poses to MS patients 100% PML Cases 7/31 (2) 10/29 12/10 2/5 90% 80% 70% 65% 61% who Agree 60% 45% Physicians 50% 45% 40% % of 30% 20% 10% 0% 06 7 07 06 0 08 08 08 08 08 09 0 20 20 20 b 2 2 H1 2 H1 H H g/ Oct c/ Fe Feb/Apr Apr/Ju
Slide 17: TYSABRI Marketing Plan
TYSABRI Marketing Plan Powerful Efficacy with Manageable Side Effects REINFORCING BENEFIT REDUCING RISK • Developed and implemented a global branding • Working to make PML a more detectable and manageable side effect message supporting efficacy positioning • Detectable through clinical vigilance • R
Slide 18: TYSABRI Marketing Acceleration
TYSABRI Marketing Acceleration Comprehensive Dialogue with Customers Builds Trust and Confidence Leader in Providing Solutions for MS Live Programming Congresses 63% 63% Peer-to-Peer Programming rating 49% rating Performance Performance 36% Webcasts Doctors Sales Details Nurses Nurse Practitioners P
Slide 19: Potential Breakthrough in AVONEX Life Cycle Management
Potential Breakthrough in AVONEX Life Cycle Management AVONEX Revenues PEGylated Interferon Beta-1a molecule Enhancing Benefits of AVONEX • PEGylated version of Inteferon â-1a +13% $2.2B delivered via liquid prefilled syringe and CAGR SC administration • Increased half-life and systemic exposure of
Slide 20: RITUXAN Growth
RITUXAN Growth RITUXAN Hem/Onc US Product Revenues ($B) $2.6 $2.3 $2.1 $1.8 $1.6 $1.4 Standard of Care for NHL $1.1 $0.8 $0.4 $0.3 $0.2 $0.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Anti-CD20 Adoption in RA aTNF Cycling Study Data 20% $8B RA Market by 2012 Ocrelizumab DMARD Launch
Slide 21: M&A Focus for Creating Shareholder Value
M&A Focus for Creating Shareholder Value • We are exploring opportunities consistent with our strategy, which: Include late stage assets and/or marketed products Will increase revenue growth in the 2010-2013 time frame Provide innovative products to address unmet needs Can be commercialized via a sp
Slide 22: Proven Track Record of Returning Cash to Shareholders
Proven Track Record of Returning Cash to Shareholders if No Strategic Opportunity Cash Balance Forecasted to be $3.3 Billion at YE 2009 Cash Flow for 2004-2008 “We try to put ourselves in the seats of shareholders and what they would see as good value, both from $9,040M $305 an economic perspective
Slide 23: Value Creation Through R&D at Biogen Idec
Value Creation Through R&D at Biogen Idec World class biotherapeutic discovery and development organization with proven track record of delivering innovative molecules Robust Clinical Development Strong Scientific Expertise Capabilities Therapeutic Area Alignment Disciplined Investment Choices
Slide 24: First-in-Class and Best-in-Class Molecules
First-in-Class and Best-in-Class Molecules Late Stage Galiximab BG-12 Lixivaptan Lumiliximab PEG-IFN Next Gen CD20s Adentri BIIB14 CDP323 Factor Hsp90i IX TWEAK IGF1R Early LINGO Fn14 Stage First-in-class Best-in-class Neurology Oncology Immunology CV / Emerging
Slide 25: Broad and Deep Pipeline
Broad and Deep Pipeline Neurology Oncology Pre-Clinical Phase 1 Phase 2 Phase 3 Market Pre-Clinical Phase 1 Phase 2 Phase 3 Market AVONEX Multiple sclerosis RITUXAN NHL & CLL (Ph. 3 complete) TYSABRI Multiple sclerosis Galiximab NHL BG-12 Multiple sclerosis Lumiliximab CLL Daclizumab Multiple sclero
Slide 26: Pipeline Supported by Active Business Development
Pipeline Supported by Active Business Development mondoBIOTECH Genentech Phase 2 Phase 2 Vernalis (In-license) (Co-development) Phase 1 (Co-development) Alnylam Cardiokine In-licensing/ Research Phase 2 Sunesis (Collaboration) Collaboration (Co-development) Research (Co-development) UCB Pharma Johns
Slide 27: Specialty Markets Focus Offers Superior Economics
Specialty Markets Focus Offers Superior Economics MS CLL BG -12 Lumiliximab Daclizumab Ocrelizumab Hemophilia CDP323 Factor IX Specialty PEG Avonex Factor VIII RA Type Rituxan Ocrelizumab BG -12 Anti-Tweak Acute Heart Failure Market Lixivaptan Adentri Practitioner WW Market Size Market Size General
Slide 28: 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
Slide 29: Investor R&D Day Comments on Biogen Idec's Pipeline
March 25, 2009 Investor R&D Day Comments on Biogen Idec’s Pipeline “Diverse early stage pipeline beyond neurology.” “R&D Day underscores expanding pipeline.” Jim Birchenough (Barclays) Joel Sendek (Lazard) “Encouraged by pipeline progress since last R&D day (2007).” “Good R&D day. Deep and broad pip
Slide 30: Recognition of Pipeline Strength
Recognition of Pipeline Strength Moody’s Investors Service Research Rates Biogen Idec: Highest on late-stage pipeline quality Most pipeline diversity 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 (A
Slide 31: Biogen Idec Board of Directors Has Owners' Perspective
Biogen Idec Board of Directors Has Owners’ Perspective Steward of Shareholder Value • Largest merger of 2 independent biotechs • $ 3B share repurchase/Dutch Auction • Review of strategic alternatives; including sale of the company • Disciplined execution of business development strategy Strong Corpo
Slide 32: Maximizing Shareholder Value
Maximizing Shareholder Value Range of Alternatives to Maximize Value Growth Through Organic Growth Outright Sale Acquisitions Capital Structure
Slide 33: Biogen Idec Board of Directors Has Broad Based Experience
Biogen Idec Board of Directors Has Broad Based 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 Biog
Slide 34: 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 35: 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 Profes
Slide 36: 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 37: Delivering on Our Commitment to Shareholders
Delivering on Our Commitment to Shareholders Financial • Strong 2008 performance and effective utilization of capital 9 • Overseen successful merger and delivered on merger goal Performance Operational • Focused on our 2010 goals and advancing our R&D pipeline 9 for future growth Performance Corpora
Slide 38: Conclusion
Conclusion • Biogen Idec has a proven track record of delivering exceptional performance • The business is poised to create future shareholder value – Executing a well-defined strategy for future growth – Broad and deep pipeline with 8 late stage programs expected 2H 2009 • This Board is best positi
Slide 39: 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