Slide 1: Biogen Idec Response to Icahn Assertions Spring 2009
Biogen Idec Response to Icahn Assertions Spring 2009
Slide 2: Forward Looking and Proxy Solicitation Statements
Forward Looking and Proxy Solicitation Statements This presentation includes forward-looking statements about: - the anticipated development of programs in our clinical pipeline - the sales potential and size of the market for TYSABRI Each forward-looking statement is subject to risks and uncertaint
Slide 3: Response to Icahn Assertions
We believe that despite his twenty-four months as a shareholder, Icahn's messages reflect a lack of understanding of our business and warrant further clarification Icahn's experience with a niche, US-focused biotech does not translate to a global, fully integrated biopharmaceutical company and his m
Slide 4: Biogen Idec Merger Focused on Accelerating Growth
Biogen Idec Merger Focused on Accelerating Growth 13 Icahn Focus on Operational Expense Ignores Broader Merger Goals Combination of renowned scientists in oncology, neurology and immunology A proven management team A broader pipeline in high growth areas (immunology, oncology) Scale and Breadth Glob
Slide 5: Merger Delivered Targeted Financial Returns
Merger Delivered Targeted Financial Returns We Have Realized Greater Capital Efficiency Delivering on Our Stated Merger Goals Note: 2003 is pro forma data for the Biogen and Idec merger. Ratios are based on Non-GAAP figures which exclude the impact of purchase accounting, merger-related adjustments,
Slide 6: The Street Views the Merger as a Success
The Street Views the Merger as a Success Source: Wall Street Research "We view the [PDL] transaction as a positive for Biogen. We believe the deal highlights the synergy of the Biogen-Idec merger that had as one of its goals increasing the attractiveness of the combined company for in-licensing onco
Slide 7: Biogen Idec Has Returned Significant Cash to Investors Since the Merger
Biogen Idec Has Returned Significant Cash to Investors Since the Merger ($ in billions) Cash Return as % of 33.1% 13.7% 8.5% 33.4% 0.0% 2.2% Market Cap Source: SEC filings and FactSet; percentages calculated based on market value of companies at the year-end preceding the execution of each year's sh
Slide 8: Misrepresentation of Value Creation
Misrepresentation of Value Creation Icahn Biogen Idec Investor Presentation Reality Icahn Neglects to Account for Cash Returned to Shareholders on Both an Absolute and Relative Basis and Chooses Peers Selectively 1
Slide 9: Selective Dates and Peer Group to Suit Icahn's Agenda
Icahn Biogen Idec Investor Presentation Icahn Amylin Investor Presentation Selective Dates and Peer Group to Suit Icahn's Agenda Icahn Selectively Leaves Out Comparable Companies and Cherry-Picks Time Period Convenient For His Comparison - Biogen Idec is a Top 3 Performer in His Amylin Presentation
Slide 10: Efficiency Gains While Supporting Continued R&D Investment
Biogen Idec Has Achieved Efficiency Gains While Supporting Continued R&D Investment Peer Average includes Genentech, Gilead, Genzyme, Amgen and Celgene Note: 2003 is pro forma data for the Biogen and Idec merger. Ratios are based on Non-GAAP figures which exclude the impact of purchase accounting, m
Slide 11: Selective Peer Benchmarking to Misrepresent Performance
Icahn Biogen Idec Investor Presentation Selective Peer Benchmarking to Misrepresent Performance Icahn Amylin Investor Presentation Median = 24% (excluding Amylin) 2
Slide 12: Fundamental Misunderstanding of Biogen Idec Strategy
Fundamental Misunderstanding of Biogen Idec Strategy Icahn Biogen Idec Investor Presentation Biogen Idec Management Presentation 3
Slide 13: Misrepresentation of Biogen Idec Pipeline
Misrepresentation of Biogen Idec Pipeline Icahn Biogen Idec Investor Presentation Reality 3 Icahn Omits Several Pipeline Programs and Focuses on Phase 3 Trials, Which Have Lengthy Enrollment and Treatment Periods
Slide 14: Misrepresentation of Biogen Idec Deal Activity
Misrepresentation of Biogen Idec Deal Activity Icahn Biogen Idec Investor Presentation Reality In Fact, Management has Completed Ten In-Licensing Deals and Three Acquisitions Since 2005 3
Slide 15: Continued Investment in Industry-Leading Multiple Sclerosis Franchise
Continued Investment in Industry-Leading Multiple Sclerosis Franchise Extend Core Franchises Fulfill Unmet Need More Effective Therapies Convenient Therapies Inhibit Neurodegeneration / Enhance Repair Broaden Use in MS Improve Product Delivery AVONEX Liquid Pre-Filled Syringe Inhalant PEG Interferon
Slide 16: Biogen Idec Continues as U.S. Multiple Sclerosis Market Share Leader
Biogen Idec Continues as U.S. Multiple Sclerosis Market Share Leader 3/1/2009 2/1/2009 1/1/2009 12/1/2008 11/1/2008 10/1/2008 9/1/2008 8/1/2008 7/1/2008 6/1/2008 5/1/2008 4/1/2008 3/1/2008 2/1/2008 1/1/2008 12/1/2007 11/1/2007 10/1/2007 9/1/2007 8/1/2007 7/1/2007 6/1/2007 5/1/2007 4/1/2007 3/1/2007
Slide 17: AVONEX Outperformed Wall Street Consensus After Rebif's Entry
AVONEX Outperformed Wall Street Consensus After Rebif's Entry 2002 2003 2004 2005 2006 2007 2008 2002 Consensus 747 749 788 817 802 753 Actual 743 800 923 939 1022 1085 1276 AVONEX U.S. Revenue ($M) CAGR 8% 0% 2002 Challenge "Rebif breaks AVONEX's Exclusivity; Lowering Estimates" - CSFB "Biogen's AV
Slide 18: 100,000 Patients on TYSABRI Remains an Appropriate Goal
100,000 Patients on TYSABRI Remains an Appropriate Goal New Patients Seeking Treatment 2006 5200 66000 2007 21300 2008 37600 While Goal Appears Difficult to Reach by End of 2010, 100,000 Patients Remains an Appropriate Goal Given Multiple Sclerosis Market Dynamics Estimated New Patients Seeking Trea
Slide 19: AMEVIVE Divestiture in Context
AMEVIVE Divestiture in Context wip Early, Decisive Action With Respect To All Aspects of the Business is Critical to Value Creation While AMEVIVE performance was disappointing, underperforming products are common across Biotech Industry(1) Decisive divestiture of AMEVIVE is representative of Biogen
Slide 20: Committed Leadership Team
Committed Leadership Team While Leadership Has Evolved Since 2003, Current Team Has Deep Experience at Biogen Idec and Incentives Reflect Alignment With Shareholder Interests Chairman Bruce Ross 12 years 74% CEO James Mullen 20 years 61% CFO Paul Clancy 8 years 44% COO Robert Hamm 15 years 55% Presi
Slide 21: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation Diluted EPS and Net Income Attributable to Biogen Idec Inc 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 me