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Biogen Idec Increases Revenue 6 Percent To $1.4 Billion In The Third Quarter

Stock quotes in this article: BIIB

These statements are based on our current beliefs and expectations and speak only as of the date of this press release. We do not undertake any obligation to publicly update any forward-looking statements.

TABLE 1
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share amounts)
                 
 
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2012 2011 2012 2011
Revenues:
 
Product $ 1,039,110 $ 975,757 $ 3,091,398 $ 2,839,562
 
Unconsolidated joint business 287,792 266,471 856,975 739,054
 
Royalty 46,625 51,585 112,509 105,811
 
Corporate partner   12,027     16,121     37,638   37,497  
 
Total revenues   1,385,554     1,309,934     4,098,520   3,721,924  
 
Cost and expenses:
 
Cost of sales, excluding amortization of acquired intangible assets 139,358 123,527 411,666 327,143
 
Research and development 304,217 301,391 989,738 880,668
 
Selling, general and administrative 299,631 261,398 901,488 772,217
 
Collaboration profit sharing 75,545 81,475 239,951 244,319
 
Amortization of acquired intangible assets 53,013 49,347 151,256 157,699
 
Fair value adjustment of contingent consideration 9,456 2,500 23,573 5,900
 
Restructuring charge   803     1,803     2,225   18,390  
 
Total cost and expenses   882,023     821,441     2,719,897   2,406,336  
 
Gain on sale of rights   31,719     -     31,719   -  
 
Income from operations 535,250 488,493 1,410,342 1,315,588
 
Other income (expense), net   (4,548 )   (7,727 )   13,546   (9,504 )
 
Income before income tax expense and equity in loss of investee, net of tax 530,702 480,766 1,423,888 1,306,084
 
Income tax expense 131,044 127,104 334,213 339,608
 
Equity in loss of investee, net of tax   1,258     -     1,769   -  
 
Net income 398,400 353,662 1,087,906 966,476
 
Net income attributable to non-controlling interests, net of tax   -     1,836     -   32,286  
 
Net income attributable to Biogen Idec Inc. $ 398,400   $ 351,826   $ 1,087,906 $ 934,190  
 
 
Net income per share:
Basic earnings per share attributable to Biogen Idec Inc. $ 1.68   $ 1.45   $ 4.56 $ 3.85  
 
Diluted earnings per share attributable to Biogen Idec Inc. $ 1.67   $ 1.43   $ 4.53 $ 3.81  
 
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Idec Inc.   236,474     242,883     238,331   242,266  
 
Diluted earnings per share attributable to Biogen Idec Inc.   238,125     245,366     240,137   245,140  
 
TABLE 2
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
         
As of As of
September 30, December 31,
2012 2011
ASSETS
 
Cash, cash equivalents and marketable securities $ 1,605,794 $ 1,690,657
 
Accounts receivable, net 661,519 584,603
 
Inventory 392,936 326,843
 
Other current assets   395,139   373,324
 
Total current assets 3,055,388 2,975,427
 
Marketable securities 1,741,534 1,416,737
 
Property, plant and equipment, net 1,676,583 1,571,387
 
Intangible assets, net 1,681,232 1,608,191
 
Goodwill 1,204,740 1,146,314
 
Investments and other assets   271,144   331,548
 
TOTAL ASSETS $ 9,630,621 $ 9,049,604
 
 
LIABILITIES AND EQUITY
 
 
Current portion of notes payable and line of credit $ 453,209 $ 3,292
 
Other current liabilities 1,067,884 909,597
 
Long-term deferred tax liability 249,577 248,644
 
Notes payable, line of credit and other financing arrangements 658,442 1,060,808
 
Other long-term liabilities 539,569 400,276
 
Equity   6,661,940   6,426,987
 
TOTAL LIABILITIES AND EQUITY $ 9,630,621 $ 9,049,604
 
TABLE 3
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Statements of Income - Non-GAAP
(unaudited, in millions, except per share amounts)
                 
 
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
EARNINGS PER SHARE 2012 2011 2012 2011
 
GAAP earnings per share - Diluted $ 1.67 $ 1.43 $ 4.53 $ 3.81
Adjustments to net income attributable to Biogen Idec Inc. (as detailed below)   0.24     0.18     0.60     0.58  
Non-GAAP earnings per share - Diluted $ 1.91   $ 1.61   $ 5.13   $ 4.39  
 
 
An itemized reconciliation between net income attributable to Biogen Idec Inc. on a GAAP basis and net income attributable to Biogen Idec Inc. on a non-GAAP basis is as follows:
 
GAAP net income attributable to Biogen Idec Inc. $ 398.4 $ 351.8 $ 1,087.9 $ 934.2
Adjustments:
R&D: Restructuring and other 7.5 - 8.6 -
R&D: Stock option expense 1.0 1.8 2.6 3.5
SG&A: Stock option expense 1.4 2.9 2.8 5.5
Amortization of acquired intangible assets 50.9 48.6 145.2 156.9
2010 Restructuring initiatives 0.8 1.8 2.2 18.4
Fair value adjustment of contingent consideration 9.5 2.5 23.6 5.9
Income tax effect related to reconciling items   (14.8 )   (14.9 )   (40.9 )   (48.4 )
Non-GAAP net income attributable to Biogen Idec Inc. $ 454.7   $ 394.5   $ 1,232.0   $ 1,076.0  
 
 
2012 Full Year Guidance GAAP to non-GAAP adjustments
An itemized reconciliation between projected EPS on a GAAP basis and on a non-GAAP basis is as follows:
 
$ Shares Diluted EPS
Projected GAAP net income attributable to Biogen Idec Inc.* $ 1,362 240 $ 5.68
Adjustments:
Stock option expense 7
Restructuring and other 11
Amortization of acquired intangible assets 194
Fair value adjustment of contingent consideration 25
Income tax expense: Income tax effect related to reconciling items   (52 )    
Projected Non-GAAP net income attributable to Biogen Idec Inc. $ 1,547     240   $ 6.45  
 
* Includes approximately $20 million to $30 million of R&D expense related to a potential upfront payment for a discovery collaboration currently under negotiation.
 

Use of Non-GAAP Financial Measures

We supplement our consolidated financial statements presented on a GAAP basis by providing additional measures which may be considered “non-GAAP” financial measures under applicable SEC rules. We believe that the disclosure of these non-GAAP financial measures provides additional insight into the ongoing economics of our business and reflects how we manage our business internally, set operational goals and forms the basis of our management incentive programs. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States and should not be viewed in isolation or as a substitute for reported, or GAAP, net income attributable to Biogen Idec Inc. and diluted earnings per share.

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