UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 2007

	Biogen Idec Inc.
	(Exact name of registrant as specified in its charter)

Delaware		0-19311		33-0112644
(State or other jurisdiction		(Commission File Number)		(IRS Employer
of incorporation)				Identification No.)

	14 Cambridge Center, Cambridge, Massachusetts		02142
	(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (617) 679-2000

	Not Applicable
	(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Biogen Idec Inc.
	By:	/s/ Robert A. Licht
		Robert A. Licht
		Vice President and Assistant Secretary

Date: July 24, 2007

 

Exhibit Number		Description
99.1		Registrant’s press release dated July 24, 2007.

 

Exhibit 99.1

Page 1 Biogen Idec Reports Second Quarter 2007 Results

Media Contact:
Naomi Aoki
Director, Public Affairs
Biogen Idec
Tel: (617) 914-6524

Investment Community Contact:
Keith Regnante
Director, Investor Relations
Biogen Idec
Tel: (617) 679-2812

FOR IMMEDIATE RELEASE

Biogen Idec Reports Second Quarter 2007 Results

Cambridge, MA, July 24, 2007 — Biogen Idec Inc. (NASDAQ: BIIB), a global biotechnology leader in the discovery, development, manufacturing, and commercialization of innovative therapies, today reported its second quarter 2007 results.

Second Quarter 2007 Highlights:

•

Second quarter revenues were $773 million, an increase of 17% from $660 million in the prior year. There were three main drivers of this growth.

	•		AVONEXÒ (interferon beta-1a) sales increased 8% to $462 million
	•		RITUXANÒ (rituximab) revenues from the unconsolidated joint business arrangement increased 12% to $231 million
	•		Global in-market net sales of TYSABRIÒ (natalizumab) in the second quarter of 2007 totaled $72 million. Based on the collaboration structure with Elan, Biogen Idec recognized revenue of $48 million related to TYSABRI.

•

On July 2, 2007, Biogen Idec announced the final results of its “Dutch Auction” tender offer which expired at 12:00 midnight ET on Tuesday, June 26, 2007. Biogen Idec accepted for payment an aggregate of 56,424,155 shares of its common stock at a purchase price of $53.00 per share, for an aggregate share repurchase of approximately $3 billion. These shares represented approximately 16.4% of the shares outstanding as of June 26, 2007. The share repurchase was funded by approximately equal parts cash and debt.

•

On a reported basis, calculated in accordance with accounting principles generally accepted in the U.S. (GAAP), second quarter 2007 diluted earnings per share (EPS) were $0.54, an increase from a loss of $0.50 in the second quarter of 2006. GAAP net income

Page 2 Biogen Idec Reports Second Quarter 2007 Results

for the quarter was $186 million, an increase from a $171 million loss in the second quarter of 2006.

•

Second quarter 2007 non-GAAP diluted EPS were $0.70, an increase of 23% over non-GAAP diluted EPS of $0.57 in the second quarter 2006. Non-GAAP net income for the second quarter was $240 million, an increase of 22% over non-GAAP net income of $197 million in the second quarter of 2006. These non-GAAP results exclude purchase accounting and merger-related accounting impacts, stock option expense, and other items.

“We are quite pleased with our second quarter performance. Fueled by the strong uptake of TYSABRI, we hit a new corporate milestone as our MS franchise exceeded $500 million in quarterly revenue for the first time in Biogen Idec’s history. We successfully completed our $3 billion share repurchase while continuing to advance and strengthen our pipeline, particularly with the anticipated addition of the late stage Lixivaptan compound,” said James Mullen, Biogen Idec’s Chief Executive Officer.

Financial Performance

On a reported basis, calculated in accordance with GAAP, Biogen Idec reported net income of $186 million (or diluted EPS of $0.54) in the second quarter of 2007.

On a non-GAAP basis, Biogen Idec reported net income of $240 million in the second quarter of 2007. Non-GAAP diluted EPS were $0.70 for the second quarter of 2007.

The reconciling items of note between GAAP net income and diluted GAAP EPS and adjusted non-GAAP net income and diluted non-GAAP EPS in the second quarter, as itemized in Table 3 within this press release, were primarily as follows:

•		Pre-tax charges of $61 million for the amortization of intangibles related to the 2003 Biogen and Idec merger, the 2006 acquisitions of Conforma and Fumapharm, and the 2007 acquisition of Syntonix;
•		Pre-tax share-based compensation expense under SFAS No. 123R of $8 million; and
•		Tax benefit of $16 million related to the pre-tax reconciling items.

Revenue Performance

Revenues from AVONEX, Biogen Idec’s therapy for patients with relapsing forms of multiple sclerosis (MS), increased 8% in the second quarter to $462 million. U.S. sales increased 3% to $270 million and international sales increased 14% to $192 million.

Revenues for the second quarter 2007 included $231 million from Biogen Idec’s joint business arrangement related to RITUXAN, a treatment for certain B-cell non-Hodgkin’s lymphomas (NHL) and rheumatoid arthritis (RA) that Biogen Idec co-promotes in the U.S. with Genentech, Inc. All U.S. sales of RITUXAN are recognized by Genentech, and Biogen Idec records its share of the pretax co-promotion profits. U.S. net sales of RITUXAN were $582 million in the second quarter (Q2 2006 were $526 million), as reported by Genentech.

During the second quarter of 2007, Biogen Idec recognized revenue of $48 million related to TYSABRI. This amount is comprised of:

Page 3 Biogen Idec Reports Second Quarter 2007 Results

•		$22.3 million related to product sold through Elan in the U.S. (based on $46.8 million of in-market sales); and
•		$25.2 million related to product sold by Biogen Idec in Europe.

As of mid-July 2007, approximately 14,000 patients are on TYSABRI therapy worldwide in the commercial and clinical trials settings.

•		In the US, approximately 8,600 patients are on TYSABRI therapy commercially.
•		In the EU, approximately 4,300 patients are on TYSABRI therapy commercially.
•		In clinical trial settings, approximately 1,000 patients are on TYSABRI therapy.

Revenue from FUMADERM^Ò (fumaric acid esters) in the second quarter of 2007 was $5 million. Biogen Idec did not recognize any revenue in Q1 2007 related to sales of FUMADERM.

Table 4 provides individual product revenues.

Royalties were $23 million and $18 million in the second quarter 2007 and 2006, respectively.

Share Repurchase Program

Biogen Idec did not repurchase any shares in the second quarter 2007 under the 20 million share repurchase program authorized by Biogen Idec’s Board of Directors in October 2006.

Financial Guidance

Biogen Idec today increased its guidance for the full year 2007, including:

•		Total revenue growth of 16%-18% over 2006;
•		Similar financial margins for 2006 and 2007, except for R&D, which will be approximately 28%-30% of revenue. This includes a $50 million milestone payment in Q3 related to the anticipated Cardiokine deal;
•		Non-GAAP diluted EPS, incorporating the impact of the recent tender offer, in the range of $2.60-$2.70 which represents 16%-20% annual growth. This non-GAAP diluted EPS estimate excludes the impact of purchase accounting, merger-related adjustments, stock option expense, and other items and their related tax effects;
•		Fully diluted weighted average shares outstanding for the first half of the year totaled approximately 343 million. Due to the tender offer, the Company expects fully diluted share count to be approximately 290-296 million for the second half of the year and 316 - -322 million for the full year.
•		The Company anticipates that 2007 capital expenditures will be in the range of $250 - $300 million.

Full year 2007 GAAP diluted EPS is estimated to be in the range of $1.84 - $1.94 versus $0.63 per share in 2006. This estimate includes the impact of the anticipated Cardiokine deal but excludes any other future acquisitions or transactions. In order to reconcile GAAP and non-GAAP EPS guidance, we have excluded the following items from our non-GAAP EPS guidance provided above:

Page 4 Biogen Idec Reports Second Quarter 2007 Results

•		Purchase accounting charges, including amortization of acquired intangible assets and IPR&D, is estimated to be $287 million, or approximately $0.90 per share, for already completed transactions;
•		Stock option expense due to FAS 123R in 2007 is estimated to be in the range of $30-$40 million, or approximately $ 0.07-$ 0.09 per share.

Because the Company cannot predict with certainty the nature or the amount of non-operating or unusual charges for 2007, we have made no assumption regarding future purchase accounting charges in this GAAP guidance. The Company may incur charges or realize income in 2007 which could cause actual results to vary from this guidance.

Recent Highlights

•		On April 26th, Biogen Idec announced the national launch of the new AVONEX Nurse Services program which is designed to help people with multiple sclerosis as they begin and continue treatment with AVONEX, the most prescribed treatment for relapsing forms of MS worldwide. This new program underscores Biogen Idec’s commitment to the MS community, which includes offering the best support services to patients and undertaking innovative research efforts to develop new therapeutic options.
•		On May 1st, Genentech and Biogen Idec announced that positive data from a Phase II clinical study of RITUXAN in patients with relapsing-remitting multiple sclerosis (RRMS) were presented at the American Academy of Neurology annual meeting held in Boston.
•		On May 3rd, Biogen Idec and Elan Corporation announced that new data from the TOUCH Prescribing Program™ and TYGRIS safety study confirm the safety profile from previous clinical studies of TYSABRI. Also presented at the 59th annual meeting of the American Academy of Neurology in Boston, MA were extension study data that showed that TYSABRI has a sustained treatment effect on clinical relapses and the risk of disability progression in multiple sclerosis patients treated for up to three years.
•		On May 8th, Biogen Idec and Vernalis announced the initiation of the Phase II program of BIIB014 (also known as V2006), an oral compound for the treatment of Parkinson’s disease. BIIB014 is an adenosine A2A receptor antagonist that may offer a non-dopaminergic therapy for patients with Parkinson’s disease.
•		On June 26th, Biogen Idec and UCB announced the initiation of a Phase II study of CDP323 (an oral VLA-4 antagonist) under development for relapsing-remitting multiple sclerosis . The double-blind, randomized Phase II study commenced with dosing of the first patient. The study is designed to enroll over 200 patients with relapsing-remitting MS who have failed earlier treatment with a beta-interferon.
•		On July 2nd, Biogen Idec Inc announced the final results of its modified “Dutch Auction” tender offer, which expired at 12:00 midnight ET on Tuesday, June 26, 2007. Biogen Idec accepted for payment an aggregate of 56,424,155 shares of its common stock at a purchase price of $53.00 per share, for an aggregate share repurchase of approximately $3

Page 5 Biogen Idec Reports Second Quarter 2007 Results

		billion. These shares represented approximately 16.4% of the shares outstanding as of June 26, 2007.
•		On July 2nd, Biogen Idec and Elan Corporation welcomed the announcement by the National Institute for Health and Clinical Excellence (NICE) in the final appraisal determination that recommended use of TYSABRI in people with highly active relapsing-remitting multiple sclerosis. TYSABRI is the first treatment for multiple sclerosis to be recommended for use by NICE.
•		On July 2nd, Biogen Idec and Cardiokine announced they agreed to jointly develop lixivaptan, an oral compound being tested for treatment of hyponatremia in patients with congestive heart failure. Lixivaptan is expected to enter a late-stage clinical trial this year. Under terms of the agreement, which is expected to become effective in the third quarter of 2007, Cardiokine, will receive a $50 million upfront payment and up to $170 million in additional milestone payments for successful development and global commercialization of lixivaptan, as well as royalties on commercial sales. Biogen Idec will be responsible for the global commercialization of lixivaptan, and Cardiokine will have an option for limited co-promotion in the U.S.

Use of Non-GAAP Financial Measures

Our “non-GAAP net income” and “non-GAAP diluted EPS” financial measures are defined as reported, or GAAP, net income and diluted EPS excluding, for the reasons discussed below, (1) purchase accounting and merger-related adjustments, (2) stock option expense and the cumulative effect of an accounting change relating to the initial adoption of SFAS No. 123R and (3) other items. Our management uses these non-GAAP financial measures to establish financial goals and to gain an understanding of the comparative financial performance of the Company from year to year and quarter to quarter. Accordingly, we believe investors’ understanding of the Company’s financial performance is enhanced as a result of our disclosing these non-GAAP financial measures. Non-GAAP net income and diluted EPS should not be viewed in isolation or as a substitute for reported, or GAAP, net income and diluted EPS.

Purchase accounting and merger-related adjustments — Non-GAAP net income and diluted EPS exclude certain purchase accounting impacts such as those related to the merger with Biogen, Inc. (the “Merger”) and the acquisitions of Fumapharm AG, Conforma Therapeutics Corporation and Syntonix Pharmaceuticals, Inc. These include charges for in process research and development and the incremental charge to cost of goods sold from our sale of acquired inventory that was written up to fair value at the acquisition date. Additionally, these excluded impacts include the incremental charges related to the amortization of the acquired intangible assets. Excluding these charges allows management and investors an alternative view of our financial results “as if” the acquired intangible asset had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which the Company’s acquired intellectual property is treated in a comparable manner to its internally developed intellectual property.

Stock option expense and the cumulative effect of an accounting change relating to the initial adoption of SFAS No. 123R — Non-GAAP net income and diluted EPS exclude the impact of