Slide 1: Biogen Idec Investor Presentation Spring 2008
Biogen Idec Investor Presentation Spring 2008
Slide 2: Forward-looking statements and proxy information
This presentation includes forward-looking statements about: our expected revenues, earnings, and cash flows estimates of sales for our products, our expected filings with regulatory agencies, the anticipated development and timing of programs in our clinical pipeline our external business developme
Slide 3: Agenda
Agenda Performance Shareholder Value Creation Sale Process Conclusions
Slide 4: Overview of Biogen Idec
Overview of Biogen Idec Industry leading, fully integrated biotechnology company created by the 2003 merger of Biogen and IDEC Pharmaceuticals Leading products and marketing excellence: 2 of top 10 industry blockbusters...with potential for a 3rd AVONEX(r) Most prescribed therapeutic product in mult
Slide 5: Our Strategy
Our Strategy We discover, develop, and commercialize significant products in global specialty markets that address areas of high unmet medical need Significant Our focus is on products with greater than $500m in revenue potential We aim to retain worldwide rights and leverage our global infrastructu
Slide 6: Delivered on 2003 Merger Goals
2003 2004 2005 2006 2007 Non-GAAP 1.22 1.4 1.57 2.25 2.74 EPS Revenue ($ Millions) Delivered on 2003 Merger Goals 2003 2004 2005 2006 2007 East 1852 2212 2423 2683 3172 CAGR 14% CAGR 22% Note: 2003 is pro forma data for the Biogen and Idec merger. Non-GAAP EPS excludes the impact of purchase account
Slide 7: Merger Delivered Robust Cash Flows
Merger Delivered Robust Cash Flows Note: Free cash flow defined as cash flows from operations minus capital expenditures as disclosed on our Form 10-K. The EBITDA on this slide refers to Non-GAAP EBITDA. Non-GAAP value excludes the impact of purchase accounting, merger-related adjustments, stock opt
Slide 8: Accelerating Revenue Growth
Accelerating Revenue Growth Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Revenue 716 773 789 893 942 Biogen Idec Quarterly Revenue ($ Millions) 32% CAGR
Slide 9: Creating Value Through Decisive Actions
Creating Value Through Decisive Actions Financial Discipline 17% reduction in force - 2005 Sales of non-core assets Two manufacturing facilities AMEVIVE(r) ZEVALIN(r) World Class Commercial Execution MS Leadership TYSABRI(r) relaunch AVONEX(r) international expansion Patient Care / Specialty Marketi
Slide 10: Stock Has Consistently Outperformed Biotech Peer Index Since Merger
Stock has Consistently Outperformed Biotech Peer Index Since Merger 3 Years 1 Year BIIB 0.15 0.17 0.31 BTK 0.12 0.12 -0.1 Note: 1, 3, and Since Merger data compares stock performance as of 5/9/08. Biogen Idec Stock Performance vs. BTK Since Merger 3 Years 1 Year
Slide 11: Biogen Idec's Value Creation Future Performance
Biogen Idec's Value Creation Future Performance 14% CAGR 22% CAGR Revenue EPS $2.74 $1.22 $1.9B $3.2B 2007-2010 Goal 15% Revenue CAGR 20% EPS CAGR Revenue and EPS 2003 Pro-Forma 2004 2005 2006 2007 2008 2009 2010 Note: The EPS references on this slide refer to non-GAAP EPS. Non-GAAP EPS excludes the
Slide 12: 2010 Goals
2010 Goals TYSABRI(r) patients on therapy exceeds 100,000 by year end 2010 ~$2.5 billion in end patient revenue 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 International b
Slide 13: 100,000 TYSABRI Patients by 2010
100,000 TYSABRI(r) Patients by 2010 Patients on MS Therapies Worldwide Current US 70000 Int'l 60000 Clinical March 2009 2010 US 15300 40000 Int'l 10200 60000 Clinical 600 100,000 130,000+ TYSABRI(r) Oct '06 Feb Apr May July Sept Dec Total 3100 7500 10000 12500 14000 17000 21000 26000 AVONEX(r) 26,00
Slide 14: Broad and Deep Pipeline
Broad and Deep Pipeline Market Phase 1 Phase 2 Phase 3 Late Research/ Pre-Clinical Daclizumab LINGO CDP323 AVONEX TYSABRI RITUXAN / Ocrelizumab BG-12 BIIB014 Neublastin RITUXAN Ocrelizumab (2nd gen. a-CD20) Baminercept alpha RITUXAN TYSABRI FUMADERM Anti-CD40L Anti-TWEAK IMMUNOLOGY Multiple sclerosi
Slide 15: Annual Review of Strategic Alternatives
Annual Review of Strategic Alternatives Execute on Business Plan (including disciplined business development) Sale of Company Merger/ Acquisition Strategic Collaboration Capital Structure
Slide 16: Factors in Evaluating Strategic Alternatives
Factors in Evaluating Strategic Alternatives Background Sale of MedImmune to AstraZeneca Expressions of interest from large pharma Icahn purchases equity stake in BIIB Management seeks out shareholder input Large Pharma Challenge Poor growth prospects Overly dependent on primary care Desire for biol
Slide 17: Comprehensive Sales Process
Comprehensive Sales Process Board of Directors authorized management to evaluate whether third parties would have an interest in acquiring Biogen Idec (publicly announced on October 12, 2007) Process designed to generate competition and elicit best value for the Company Proactively contacted every m
Slide 18: Sales Process Detail
Sales Process Detail Reach out to all potential buyers (17 companies) Sign standard non-disclosure agreements Use of confidential information limited to purchase evaluation 18 month standstill BIIB to regulate contact with major partners Provide company information Management presentation Long range
Slide 19: No Bid Emerged Following Diligence
No Bid Emerged Following Diligence Participants appreciated our leading product franchises, quality of pipeline, and financial performance Neither bid instructions nor sequence of discussions with partners were limiting factors No price guidance or minimum required bid was given to potential buyers
Slide 20: Board Financial Expertise and Industry Leadership
Financial Expertise Lawrence C. Best Former EVP and CFO, Boston Scientific Former Senior Partner, Ernst & Young Professional Accounting Fellow in the Office of the Chief Accountant at the SEC Robert W. Pangia Partner, Ivy Capital Partners / Ivy Healthcare Capital CEO of Highlands Acquisition Corp 11
Slide 21: Broad Based Board Experience
Broad Based Board Experience Larry Best Marijn Dekkers Alan Glassberg Nancy Leaming Jim Mullen Robert Pangia Stelios Papadopoulos Cecil Pickett Bruce Ross Phil Sharp Lynn Schenk Bill Young General Management Finance/ Accounting R&D Customer Perspective/ Market & Sales International Business Independ
Slide 22: Dissident Slate
Dissident Slate We interviewed the dissident slate as part of the nomination process Dissident slate insisted they only be considered as a group No nominee possesses any unique or additive experiences No nominee was able to articulate any strategy to improve shareholder value creation
Slide 23: Drivers of Shareholder Value Creation
Drivers of Shareholder Value Creation Strategic Plan Capital Structure Sale Execute against long range strategic plan Grow commercial product portfolio Advance pipeline Deliver compelling financial performance Use cash in an efficient manner Strategic transactions In-licensing and collaborations Dis
Slide 24: The Board is Best Positioned to Continue to Deliver Value
The Board is Best Positioned to Continue to Deliver Value to All Shareholders Proven track record of taking decisive action and consistently delivering value to all shareholders Exceptionally qualified Committed to continuing to deliver shareholder value Vote for All Director Nominees on the WHITE P
Slide 25: GAAP to Non-GAAP Reconciliation 2003-2007
GAAP to non-GAAP Reconciliation 2003 -2007 Diluted EPS, Net Income, and EBITDA 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