Biogen Reports Second Quarter 1998 Results
PR Newswire, Thursday, July 09, 1998 at 16:40
AVONEX(R) Now World's Leading MS Treatment
CAMBRIDGE, Mass., July 9 /PRNewswire/ -- Biogen, Inc. (Nasdaq : BGEN)
today reported financial results for the second quarter of 1998. For the
three months ended June 30, 1998, the Company reported net income of
$31,449,000 or $0.41 per share. Revenues for the quarter were $135,775,000.
For the second quarter of last year, the Company reported net income of
$19,948,000 or $0.26 per share, based on revenues of $97,653,000.
Jim Tobin, Biogen's President and Chief Executive Officer, said, "With
more than 44,000 patients currently on therapy, AVONEX(R) (Interferon beta-1a)
has become the world's leading treatment for multiple sclerosis. We are
seeing balanced growth between the U.S. and Europe and are continuing to build
the franchise for this important product. During the quarter, we launched in
a number of markets, including Canada and Belgium, and achieved regulatory
approval in the Czech Republic, Slovakia and Hungary. We are also continuing
an aggressive clinical trials program that is designed to expand the
indications for AVONEX(R).
"Our clinical development pipeline continues to progress. During the
quarter, we began a Phase 2b clinical trial of LFA3TIP in psoriasis and a
Phase 2b clinical trial of CVT124 in congestive heart failure. We also
received FDA approval to begin trials of 5c8 humanized monoclonal antibody in
ITP (Idiopathic Thrombocytopenic Purpura) and lupus.
"Biogen has received considerable recognition for our scientific
excellence, product innovation and industry leadership. In May, we received
France's 1998 Prix Galien. This prize is awarded annually in recognition of
outstanding innovation in pharmaceutical research and development and is one
of the highest honors a new pharmaceutical product can receive. We have also
recently received the Biotechnology Industry Organization's first national
HELIX award, which recognizes excellence in product and scientific innovation,
economic growth and corporate citizenship.
"During the quarter, we announced a multi-party agreement that will extend
our U.S. royalties for Intron(R)A alpha interferon for more than a decade. In
conjunction with the outlicensing of Hirulog(R) (bivalirudin) and VLA4, this
should solidify our royalty stream going forward.
"Finally, as anticipated, a Federal jury unanimously rejected all claims
by a class of plaintiffs against the Company relating to Biogen's 1994
statements about Hirulog(R)."
In addition to historical facts, this press release contains forward-
looking statements that involve risks and uncertainties that could cause
actual results to differ materially from those reflected in the forward-
looking statements. Reference is made in particular to forward-looking
statements regarding growth and expansion of the AVONEX(R) market, and
solidification of the Company's future royalty stream. These statements are
made based on the Company's current belief as to the outcome and timing of
such future events. Factors which could cause actual results to differ from
the Company's expectations include, without limitation, changes in the
Company's ability to maintain a high level of patient satisfaction with
AVONEX(R), the nature of regulatory, pricing and reimbursement decisions
worldwide, the impact of competition and litigation, the risks commonly
associated with development and commercialization of drugs, and the other
risks and uncertainties detailed from time to time in the Company's periodic
reports filed with the Securities and Exchange Commission.
Biogen, Inc., headquartered in Cambridge, MA, is a biopharmaceutical
company principally engaged in discovering and developing drugs for human
healthcare through genetic engineering. The Company's revenues are generated
from the worldwide sales of AVONEX(R) (Interferon beta-1a) for treatment of
relapsing forms of multiple sclerosis, and from the worldwide sales by
licensees of a number of products, including alpha interferon, hepatitis B
vaccines and diagnostic products. Biogen's research and development
activities are focused on novel products for multiple sclerosis, inflammatory,
respiratory, kidney and cardiovascular diseases and in developmental biology
and gene therapy. For copies of press releases and additional information
about the Company, please consult Biogen's Homepage on the World Wide Web at
biogen.com.
FINANCIAL RESULTS FOR THE SECOND QUARTER 1998
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in thousands, except per share data)
Three-months ended Six-months ended
June 30, June 30,
1998 1997 1998 1997
REVENUES
Product Sales $87,073 $56,440 $163,173 $109,056
Royalties 41,739 36,007 80,111 78,222
Interest 6,963 5,206 13,931 10,113
Total Revenues 135,775 97,653 257,215 197,391
EXPENSES
Cost of sales 17,171 11,444 32,044 23,188
Research and development42,135 32,014 79,255 69,922
Sales, general and
administrative 28,481 20,960 54,484 42,124
Other 724 (190) 770 144
Total Expenses 88,511 64,228 166,553 135,378
INCOME BEFORE 47,264 33,425 90,662 62,013
INCOME TAXES
Income Taxes 15,815 13,477 31,442 25,055
NET INCOME $31,449 $19,948 $59,220 $36,958
BASIC INCOME $0.43 $0.27 $0.80 $0.50
PER SHARE
DILUTED INCOME $0.41 $0.26 $0.77 $0.48
PER SHARE
Basic Shares Outstanding73,772 73,887 73,854 73,578
Diluted Shares
Outstanding 76,764 76,248 76,809 76,546
FINANCIAL RESULTS FOR THE SECOND QUARTER 1998
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
June 30, 1998 Dec. 31, 1997
ASSETS
CURRENT ASSETS
Cash and marketable securities$460,614 $440,088
Accounts receivable 85,623 86,802
Other current assets 66,088 69,176
Total current assets 612,325 596,066
PROPERTY AND EQUIPMENT, NET 177,779 174,492
OTHER ASSETS 43,467 43,267
TOTAL ASSETS $833,571 $813,825
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES $105,576 $123,883
LONG-TERM DEBT 75,199 76,978
PUT OPTION 33,335 76,671
SHAREHOLDERS' EQUITY 619,461 536,293
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $833,571 $813,825
SOURCE Biogen, Inc.
-0- 07/09/98
/CONTACT: Media: Kathryn R. Bloom, Director of Communications,
617-679-2851 or Investors: Elizabeth Woo, Manager, Investor Relations,
617-679-2812 both of Biogen, Inc./ |
