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Biogen Idec 2012 Revenue Increases 9% To $5.5 Billion

These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including our dependence on our three principal products, AVONEX, TYSABRI and RITUXAN, the importance of TYSABRI’s sales growth, uncertainty of success in commercializing and developing other products, product competition, the occurrence of adverse safety events with our products, changes in the availability of reimbursement for our products, adverse market and economic conditions, our dependence on collaborations and other third parties over which we may not always have full control, problems with our manufacturing processes and our reliance on third parties, failure to comply with government regulation, our ability to protect our intellectual property rights and have sufficient rights to market our products together with the cost of doing so, the risks of doing business internationally, failure to manage our growth and execute our growth initiatives, charges and other costs relating to our properties, fluctuations in our effective tax rate, our ability to attract and retain qualified personnel, product liability claims, fluctuations in our operating results, the market, interest and credit risks associated with our portfolio of marketable securities, environmental risks, change of control provisions in our collaborations and the other risks and uncertainties that are described in the Risk Factors section of our most recent annual or quarterly report and in other reports we have filed with the SEC.

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 Twelve Months
Ended December 31, Ended December 31,
  2012     2011     2012     2011  
Revenues:
 
Product, net $ 1,074,676 $ 996,555 $ 4,166,074 $ 3,836,117
 
Unconsolidated joint business 280,948 257,543 1,137,923 996,597
 
Royalty 56,170 52,686 168,679 158,497
 
Corporate partner   6,147     19,926     43,785     57,423  
 
Total revenues   1,417,941     1,326,710     5,516,461     5,048,634  
 
Cost and expenses:
 
Cost of sales, excluding amortization of acquired intangible assets 133,828 139,638 545,494 466,780
 
Research and development 345,180 338,933 1,334,919 1,219,602
 
Selling, general and administrative 375,977 283,916 1,277,465 1,056,133
 
Collaboration profit sharing 77,944 73,453 317,895 317,771
 
Amortization of acquired intangible assets 50,948 50,866 202,204 208,566
 
Fair value adjustment of contingent consideration 3,630 30,165 27,202 36,065
 
Restructuring charge   -     636     2,225     19,026  
 
Total cost and expenses   987,507     917,607     3,707,404     3,323,943  
 
Gain on sale of rights   15,073     -     46,792     -  
 
Income from operations 445,507 409,103 1,855,849 1,724,691
 
Other income (expense), net   (14,290 )   (3,973 )   (744 )   (13,477 )
 
Income before income tax expense and equity in loss of investee, net of tax 431,217 405,130 1,855,105 1,711,214
 
Income tax expense 136,341 104,919 470,554 444,528
 
Equity in loss of investee, net of tax   2,749     -     4,518     -  
 
Net income 292,127 300,211 1,380,033 1,266,686
 
Net income attributable to non-controlling interests, net of tax   -     (27 )   -     32,258  
 
Net income attributable to Biogen Idec Inc. $ 292,127   $ 300,238   $ 1,380,033   $ 1,234,428  
 
 
Net income per share:
Basic earnings per share attributable to Biogen Idec Inc. $ 1.23   $ 1.24   $ 5.80   $ 5.09  
 
Diluted earnings per share attributable to Biogen Idec Inc. $ 1.23   $ 1.22   $ 5.76   $ 5.04  
 
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Idec Inc.   236,612     242,959     237,938     242,395  
 
Diluted earnings per share attributable to Biogen Idec Inc.   238,324     245,382     239,740     245,033  
 
       
TABLE 2
Biogen Idec Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
 
As of As of
December 31, December 31,
  2012   2011
ASSETS
 
Cash, cash equivalents and marketable securities $ 1,705,710 $ 1,690,657
 
Accounts receivable, net 686,848 584,603
 
Inventory 447,373 326,843
 
Other current assets 404,406 373,324
 
Total current assets 3,244,337 2,975,427
 
Marketable securities 2,036,658 1,416,737
 
Property, plant and equipment, net 1,742,226 1,571,387
 
Intangible assets, net 1,631,547 1,608,191
 
Goodwill 1,201,296 1,146,314
 
Investments and other assets 274,054 331,548
 
TOTAL ASSETS $ 10,130,118 $ 9,049,604
 
 
LIABILITIES AND EQUITY
 
 
Current portion of notes payable and line of credit $ 453,379 $ 3,292
 
Other current liabilities 1,204,010 909,597
 
Long-term deferred tax liability 217,272 248,644
 
Notes payable, line of credit and other financing arrangements 687,396 1,060,808
 
Other long-term liabilities 604,266 400,276
 
Equity 6,963,795 6,426,987
 
TOTAL LIABILITIES AND EQUITY $ 10,130,118 $ 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 Twelve Months
Ended December 31, Ended December 31,
EARNINGS PER SHARE   2012     2011     2012     2011  
 
GAAP earnings per share - Diluted $ 1.23 $ 1.22 $ 5.76 $ 5.04
Adjustments to net income attributable to Biogen Idec Inc. (as detailed below)   0.17     0.29     0.77     0.86  
Non-GAAP earnings per share - Diluted $ 1.40   $ 1.51   $ 6.53   $ 5.90  
 
 
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. $ 292.1 $ 300.2 $ 1,380.0 $ 1,234.4
Adjustments:
R&D: Restructuring and other - - 8.6 -
R&D: Stock option expense 0.8 1.3 3.4 4.8
SG&A: Stock option expense 1.3 2.0 4.1 7.5
Amortization of acquired intangible assets 49.1 49.5 194.3 206.4
2010 Restructuring initiatives - 0.6 2.2 19.0
Fair value adjustment of contingent consideration 3.6 30.2 27.2 36.1
Income tax effect related to reconciling items   (12.3 )   (13.6 )   (53.2 )   (62.0 )
Non-GAAP net income attributable to Biogen Idec Inc. $ 334.6   $ 370.2   $ 1,566.6   $ 1,446.2  
 
 
2013 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. $ 1,550 238 $ 6.51
Adjustments:
Stock option expense 8
Restructuring and other -
Amortization of acquired intangible assets 194
Fair value adjustment of contingent consideration 16
Income tax expense: Income tax effect related to reconciling items   (54 )    
Projected Non-GAAP net income attributable to Biogen Idec Inc. $ 1,714     238   $ 7.20  
 
* 2013 full year projected GAAP and Non-GAAP diluted EPS amounts reflect mid-points within ranges of estimated guidance.

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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