Biogen Idec Inc.: PharmaVitae Profile 2009

CHAPTER 1 ABOUT THIS PROFILE 2
Executive summary 2
Quarterly news update 2
Company introduction 2
Company sales 2
Company financials 2
Key products and competitors 3
Data sourcing 3
Sales data 3
Analyst consensus 3
CHAPTER 2 EXECUTIVE SUMMARY 4
Key findings 4
Prescription pharmaceutical sales performance, 2001-13 5
Financial performance, 2001-13 6
Biogen Idec: PharmaVitae forecasts at a glance 8
Strategic insight 9
The merger of Biogen and IDEC Pharmaceuticals created a CNS and oncology player 9
Tysabri, once touted as the revolution in multiple sclerosis, could now damage the company’s leading Avonex franchise 11
Fumapharm acquisition to add further weight to the company’s threatened MS franchise 13
SWOT analysis 15
Strengths 15
Weaknesses 15
Opportunities 16
Threats 16
CHAPTER 3 QUARTERLY NEWS UPDATE 20
Product developments 20
Deals and alliances 21
Product deals 21
Technology deals 22
M&A activity 22
Company announcements 23
Future product milestones 25
CHAPTER 4 COMPANY INTRODUCTION 26
Key findings 26
Background 27
Key corporate developments 28
M&A history 29
M&A strategy 29
Conforma Therapeutics 30
Fumapharm AG 31
Syntonix 31
Current corporate structure 33
Biopharmaceuticals 33
CHAPTER 5 COMPANY SALES 35
Key findings 35
Prescription pharmaceutical sales and growth rate analysis, 2001-13 36
Product analysis 38
Product analysis, 2001-07 38
Product analysis, 2007-13 41
Therapy area analysis 45
Therapy area analysis, 2001-07 47
Therapy area analysis, 2007-13 49
Therapy area focus, 2001-13 51
Geographic analysis 53
Geographic analysis, 2001-07 54
Geographic analysis, 2007-13 55
Geographic focus, 2001-13 58
Launch/core/expiry analysis 59
Explanation of launch/core/expiry analysis 59
Launch analysis, 2007-13 60
Core analysis, 2007-13 62
Expiry analysis, 2007-13 63
Launch/core/expiry configuration, 2007-13 64
Molecule type analysis 66
Molecule type analysis, 2001-07 68
Molecule type analysis, 2001-07 68
Molecule type analysis, 2007-13 69
Externalization analysis 72
Externalization analysis, 2001-07 74
Externalization analysis, 2007-13 75
CHAPTER 6 COMPANY FINANCIALS 78
Key findings 78
Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 79
Financial statements, 2001-07 81
Profit and loss account, 2001-07 81
Balance sheet, 2001-07 83
Operating costs and profit analysis 85
Operating costs and profit analysis, 2001-07 87
Operating cost ratio and profit margin analysis, 2001-07 88
Operating cost ratio and profit margin analysis, 2007-13 89
Operating costs and profit analysis, 2007-13 92
Return on capital employed analysis 94
Capital employed analysis, 2001-07 95
Capital employed analysis, 2001-07 95
Return on capital employed (RoCE) analysis, 2001-07 97
CHAPTER 7 KEY PRODUCTS AND COMPETITORS 100
Key findings 100
Overview 101
Central nervous system 102
Avonex 102
Overview 102
Sales forecast 103
Ongoing post-marketing studies unlikely to have much of an impact on Avonex prescriptions 103
Avonex sales to decline as Tysabri cannibalizes sales and pipeline products come to market 104
Tysabri 105
Overview 105
Sales forecast 106
Safety scare 106
Re-launch 107
Two new confirmed cases of PML rocked initially strong 2008 Tysabri uptake 107
Physician enrollment and patient numbers have increased strongly with each month through to July 2008 108
Tysabri’s sales forecast has been upgraded, but long-term growth hinges on the incidence and management of new PML cases 108
BG-12 110
Overview 110
Sales forecast 111
Phase III studies continue to recruit patients 111
Oncology 113
Rituxan revenues 113
Overview 113
Sales forecast 114
Lumiliximab 116
Overview 116
Sales forecast 117
CHAPTER 8 APPENDIX 119
R&D pipeline 119
References 120
Datamonitor Reports 120
Abbreviations 122
List of Tables
Table 1: Biogen Idec - PharmaVitae forecasts at a glance 8
Table 2: Biogen Idec key product developments, 2008 20
Table 3: Biogen Idec product deals and alliances, 2008 21
Table 4: Biogen Idec technology deals and alliances, 2008 22
Table 5: Biogen Idec M&A activity, 2008 22
Table 6: Biogen Idec company announcements, 2008 23
Table 7: Biogen Idec future product milestones, 2008-10 25
Table 8: Biogen Idec product portfolio overview ($m), 2001-07 38
Table 9: Biogen Idec product portfolio overview ($m), 2007-13 41
Table 10: Biogen Idec product portfolio overview ($m), 2001-07 47
Table 11: Biogen Idec product portfolio overview ($m), 2007-13 49
Table 12: Biogen Idec portfolio overview by geographic region ($m), 2001-07 54
Table 13: Biogen Idec portfolio overview by geographic region ($m), 2007-13 55
Table 14: Biogen Idec launch portfolio overview ($m), 2007-13 60
Table 15: Biogen Idec core portfolio overview ($m), 2007-13 62
Table 16: Biogen Idec expiry portfolio overview ($m), 2007-13 63
Table 17: Biogen Idec portfolio overview by molecule type ($m), 2001-07 68
Table 18: Biogen Idec product portfolio overview by molecule type ($m), 2007-13 69
Table 19: Biogen Idec product portfolio overview by source ($m), 2001-07 74
Table 20: Biogen Idec product portfolio overview by source ($m), 2007-13 75
Table 21: Total Biogen Idec sales by business unit ($m), 2001-07 79
Table 22: Biogen Idec profit and loss account ($m), 2001-07 81
Table 23: Biogen Idec balance sheet ($m), 2001-07 83
Table 24: Biogen Idec operating revenue/cost analysis ($m), 2001-07 87
Table 25: Biogen Idec operating cost ratio analysis (% of total revenues), 2001-07 88
Table 26: Biogen Idec operating cost ratio analysis (% of total revenues), 2007-13 89
Table 27: Biogen Idec operating revenue/cost analysis ($m), 2007-13 92
Table 28: Biogen Idec capital employed ($m), 2001-07 95
Table 29: Biogen Idec EBIT return on capital employed ($m), 2001-07 97
Table 30: Biogen Idec EBIT pre-tax return/capital employed driver analysis (%), 2001-07 98
Table 31: Key products overview 101
Table 32: Avonex: overview 102
Table 33: Avonex: sales forecast ($m), 2007-13 103
Table 34: Tysabri: overview 105
Table 35: Tysabri: sales forecast ($m), 2007-13 106
Table 36: BG-12: overview 110
Table 37: BG-12: sales forecast ($m), 2007-13 111
Table 38: Rituxan: overview 113
Table 39: Rituxan revenues: sales forecast ($m), 2007-13 114
Table 40: Lumiliximab: overview 116
Table 41: Lumiliximab: sales forecast ($m), 2007-13 117
Table 42: Biogen Idec R&D pipeline (Phase I-registration) 119
List of Figures
Figure 1: Biogen Idec prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 5
Figure 2: Biogen Idec’s financial performance ($m), 2001-13 7
Figure 3: The Biogen-IDEC merger 10
Figure 4: Declining fortunes of Avonex as Tysabri picks up sales impetus 12
Figure 5: The impact of BG-12 on Biogen Idec’s MS franchise 13
Figure 6: Biogen Idec SWOT analysis 15
Figure 7: Biogen IDEC timeline 28
Figure 8: M&A/divestment history 29
Figure 9: Current corporate structure 33
Figure 10: Biogen Idec prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 36
Figure 11: Biogen Idec key sales growth drivers & resistors ($m), 2001-07 39
Figure 12: Biogen Idec key sales growth drivers & resistors ($m), 2007-13 42
Figure 13: Biogen Idec prescription pharmaceutical sales by therapy area ($m), 2001-13 46
Figure 14: Biogen Idec prescription pharma sales by therapy area (% of total), 2001-13 51
Figure 15: Biogen Idec prescription pharmaceutical sales by geographic region ($m), 2001-13 53
Figure 16: Biogen Idec growth drivers & resistors by geographic region ($m), 2001-07 54
Figure 17: Biogen Idec drivers & resistors by geographic region ($m), 2007-13 56
Figure 18: Biogen Idec prescription pharmaceutical sales by geographic region (% of total), 2001-13 58
Figure 19: Biogen Idec launch/core/expiry configuration ($m), 2007-13 64
Figure 20: Biogen Idec prescription pharmaceutical sales by molecule type ($m), 2001-13 67
Figure 21: Biogen Idec growth drivers and resistors by molecule type ($m), 2007-13 70
Figure 22: Biogen Idec prescription pharmaceutical sales by source ($m), 2001-13 73
Figure 23: Biogen Idec growth drivers & resistors by source ($m), 2007-13 76
Figure 24: Biogen Idec operating revenue/cost analysis ($m), 2001-13 86
Figure 25: Biogen Idec operating cost ratio analysis (% of total revenues), 2001-13 91
Figure 26: Biogen Idec return on capital employed, EBIT margin and capital turnover, 2001-07 94
Figure 27: Return on capital employed formula 98