Biogen Reports Record Results for First Quarter 2001

Growth Driven by 26 Percent Increase in AVONEX(R) (Interferon beta-1a) Sales;

More Than 100,000 Patients Worldwide Now on Therapy



Apr 12, 2001, 01:00 ET from Biogen, Inc.

    CAMBRIDGE, Mass., April 12 /PRNewswire/ -- Biogen, Inc. (Nasdaq: BGEN)
 today reported financial results for the first quarter of 2001.  For the three
 months ended March 31, 2001, the Company reported a record $220 million in
 product revenues, representing a 26 percent increase in AVONEX(R) (Interferon
 beta-1a) sales versus the same period last year.  Earnings per share were
 $0.47 on a reported basis and $0.46 per share before a gain on equity sales,
 representing a 12 percent increase over last year.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO )
     James C. Mullen, Biogen's President and Chief Executive Officer, said,
 "Our strong performance this quarter reflects regained momentum in AVONEX
 sales.  U.S. sales of AVONEX were outstanding, up 28 percent over the same
 period last year.  We have achieved a major milestone, with more than 100,000
 patients now on AVONEX therapy.  AVONEX continues to be the leading treatment
 worldwide for MS."
     Mr. Mullen also said, "In addition to our success in the marketplace, we
 have made considerable progress at every point in our pipeline, ranging from
 compounds in research to late-stage clinical trials."  During the quarter:
 
     -- Biogen completed its Phase III clinical trials of AMEVIVE(TM)
        (alefacept) for the treatment of moderate-to-severe chronic plaque
        psoriasis.  Phase II data presented at the American Academy of
        Dermatology (AAD) meeting in March continue to support an emerging
        profile that suggests a sustained duration of response with no reports
        of disease rebound.
 
     -- In January, Biogen and its partner, Elan Corporation, reported positive
        results in two large Phase II clinical trials of ANTEGREN(R)
        (natalizumab) in multiple sclerosis and Crohn's disease.  The companies
        are moving forward aggressively to initiate Phase III clinical trials
        in both indications in the second half of this year.
 
     -- Two new drug candidates representing very promising commercial
        opportunities entered the clinic.  Phase I trials began in March for
        ADENTRI(TM), a highly selective small molecule A1 Adenosine receptor
        antagonist for congestive heart failure.  ADENTRI promises to address a
        critical unmet medical need, reversing compromised kidney function in
        patients with decreased cardiac output.
 
     -- Also moving into the clinic this quarter in a Phase I trial was soluble
        lymphotoxin beta receptor (LT beta receptor).  Biogen is the first
        company to develop a protein in this exciting new class of therapeutic
        agents that act on dendritic cells.  (Dendritic cells play an important
        role early in the autoimmune cascade).  LT beta receptor has
        disease-modifying potential in many autoimmune diseases, including
        rheumatoid arthritis.
 
     -- Two programs advanced from research into preclinical development.
        VLA-1 inhibitor represents a novel therapeutic approach to clinical
        indications of chronic inflammation and fibrosis.  Biogen scientists
        have developed VLA-1 inhibitors as a means of blocking the inflammation
        and fibrotic process in a highly specific manner.  In oncology, Biogen
        is developing an antibody directed against the lymphotoxin beta
        receptor.  This member of the TNF-signaling family is believed to have
        important effects on tumor cell growth and differentiation.
 
     In addition to historical information, this press release contains
 forward-looking statements within the meaning of the "safe harbor" provisions
 of the Private Securities Litigation Reform Act of 1995.  Reference is made in
 particular to statements regarding plans for commencement of various clinical
 trials and pre-clinical development programs.  These statements are based on
 the Company's current beliefs and expectations with respect to these programs.
 Drug development involves a high degree of risk.  Success in early stage
 clinical trials and results in research and preclinical development do not
 ensure that later stage or larger scale clinical trials or in preclinical
 development will be successful.  Factors which could cause actual results to
 differ from the Company's current expectations include the risk that the
 Company will encounter one or more technical hurdles associated with new drug
 development or that problems or delays may arise during preparations for or
 the conduct of any phase of clinical trials, as well as the other risks and
 uncertainties associated with drug development described in the Company's
 periodic reports filed with the Securities and Exchange Commission.  Success
 in early stage clinical trials or preclinical work does not ensure that later
 stage or larger scale clinical trials will be successful.
 
     Biogen, Inc., winner of the U.S. National Medal of Technology, is a
 biopharmaceutical company principally engaged in discovering and developing
 drugs for human healthcare through genetic engineering.  Headquartered in
 Cambridge, MA, the Company's revenues are generated from international 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 and hepatitis B vaccines and diagnostic products.
 Biogen's research and development activities are focused on novel products to
 treat inflammatory and autoimmune diseases, neurological diseases, cancer,
 fibrosis and congestive heart failure.  The Company maintains active clinical
 research programs in protein therapeutics, small molecules, genomics 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
 http://www.biogen.com
 
     AVONEX(R) (Interferon beta-1a) is a registered trademark of Biogen, Inc.
 AMEVIVE(TM) (alefacept) and ADENTRI(TM) (A1 Adenosine receptor antagonist) are
 trademarks of Biogen, Inc.  ANTEGREN(R) (natalizumab) is a registered
 trademark of Elan Corporation.  AVONEX is approved in the U.S. and in most
 other countries around the world for the treatment of relapsing forms of
 multiple sclerosis.
 
     NOTE:  The Company's earnings conference call for the first quarter will
 be broadcast via the Internet at 8:00 a.m. EST on Thursday, April 12, 2001,
 and will be accessible through the investor relations section of Biogen's
 homepage, http://www.biogen.com.  The call will be available for replay on the
 Biogen website until April 19, 2001.
 
 
                  Financial Results For The First Quarter of 2001
                    Condensed Consolidated Statements Of Income
                     (in thousands, except per share amounts)
 
                                                   Three Months Ended
                                                       March 31,
                                                 2001              2000
     REVENUES
 
     Product                                   $219,997          $174,596
 
     Royalties                                   17,050            42,252
 
     Total Revenues                             237,047           216,848
 
     COST AND EXPENSES
 
     Cost of revenues                            29,146            28,623
 
     Research and development                    72,770            63,006
 
     Selling, general and administrative         48,560            41,183
 
     Total Cost and Expenses                    150,476           132,812
 
     Income from Operations                      86,571            84,036
 
     Other income, net                           16,463            99,024
 
     INCOME BEFORE INCOME TAXES                 103,034           183,060
 
     Income Taxes                                30,911            61,694
 
     NET INCOME                                 $72,123          $121,366
 
     BASIC EARNINGS PER SHARE                     $0.49             $0.81
 
     DILUTED EARNINGS PER SHARE                   $0.47             $0.77
 
     SHARES USED IN CALCULATING:
 
          BASIC EARNINGS PER SHARE              148,188           150,360
 
          DILUTED EARNINGS PER SHARE            153,491           157,712
 
 
                       Condensed Consolidated Balance Sheets
                                  (in thousands)
 
                                            Mar. 31, 2001     Dec. 31, 2000
 
     ASSETS
     Current Assets
 
     Cash and marketable securities            $748,027          $682,412
 
     Accounts receivable, net                   146,804           143,178
 
     Other current assets                       110,041           102,681
 
     Total current assets                     1,004,872           928,271
 
     Property and equipment, net                428,625           400,429
 
     Other assets                                72,086           103,156
 
                                             $1,505,583        $1,431,856
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities                       $226,187          $221,021
 
     Long term debt & liabilities                99,039           104,433
 
     Shareholders' equity                     1,180,357         1,106,402
 
                                             $1,505,583        $1,431,856
 
 

SOURCE Biogen, Inc.
    CAMBRIDGE, Mass., April 12 /PRNewswire/ -- Biogen, Inc. (Nasdaq: BGEN)
 today reported financial results for the first quarter of 2001.  For the three
 months ended March 31, 2001, the Company reported a record $220 million in
 product revenues, representing a 26 percent increase in AVONEX(R) (Interferon
 beta-1a) sales versus the same period last year.  Earnings per share were
 $0.47 on a reported basis and $0.46 per share before a gain on equity sales,
 representing a 12 percent increase over last year.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990824/BIOLOGO )
     James C. Mullen, Biogen's President and Chief Executive Officer, said,
 "Our strong performance this quarter reflects regained momentum in AVONEX
 sales.  U.S. sales of AVONEX were outstanding, up 28 percent over the same
 period last year.  We have achieved a major milestone, with more than 100,000
 patients now on AVONEX therapy.  AVONEX continues to be the leading treatment
 worldwide for MS."
     Mr. Mullen also said, "In addition to our success in the marketplace, we
 have made considerable progress at every point in our pipeline, ranging from
 compounds in research to late-stage clinical trials."  During the quarter:
 
     -- Biogen completed its Phase III clinical trials of AMEVIVE(TM)
        (alefacept) for the treatment of moderate-to-severe chronic plaque
        psoriasis.  Phase II data presented at the American Academy of
        Dermatology (AAD) meeting in March continue to support an emerging
        profile that suggests a sustained duration of response with no reports
        of disease rebound.
 
     -- In January, Biogen and its partner, Elan Corporation, reported positive
        results in two large Phase II clinical trials of ANTEGREN(R)
        (natalizumab) in multiple sclerosis and Crohn's disease.  The companies
        are moving forward aggressively to initiate Phase III clinical trials
        in both indications in the second half of this year.
 
     -- Two new drug candidates representing very promising commercial
        opportunities entered the clinic.  Phase I trials began in March for
        ADENTRI(TM), a highly selective small molecule A1 Adenosine receptor
        antagonist for congestive heart failure.  ADENTRI promises to address a
        critical unmet medical need, reversing compromised kidney function in
        patients with decreased cardiac output.
 
     -- Also moving into the clinic this quarter in a Phase I trial was soluble
        lymphotoxin beta receptor (LT beta receptor).  Biogen is the first
        company to develop a protein in this exciting new class of therapeutic
        agents that act on dendritic cells.  (Dendritic cells play an important
        role early in the autoimmune cascade).  LT beta receptor has
        disease-modifying potential in many autoimmune diseases, including
        rheumatoid arthritis.
 
     -- Two programs advanced from research into preclinical development.
        VLA-1 inhibitor represents a novel therapeutic approach to clinical
        indications of chronic inflammation and fibrosis.  Biogen scientists
        have developed VLA-1 inhibitors as a means of blocking the inflammation
        and fibrotic process in a highly specific manner.  In oncology, Biogen
        is developing an antibody directed against the lymphotoxin beta
        receptor.  This member of the TNF-signaling family is believed to have
        important effects on tumor cell growth and differentiation.
 
     In addition to historical information, this press release contains
 forward-looking statements within the meaning of the "safe harbor" provisions
 of the Private Securities Litigation Reform Act of 1995.  Reference is made in
 particular to statements regarding plans for commencement of various clinical
 trials and pre-clinical development programs.  These statements are based on
 the Company's current beliefs and expectations with respect to these programs.
 Drug development involves a high degree of risk.  Success in early stage
 clinical trials and results in research and preclinical development do not
 ensure that later stage or larger scale clinical trials or in preclinical
 development will be successful.  Factors which could cause actual results to
 differ from the Company's current expectations include the risk that the
 Company will encounter one or more technical hurdles associated with new drug
 development or that problems or delays may arise during preparations for or
 the conduct of any phase of clinical trials, as well as the other risks and
 uncertainties associated with drug development described in the Company's
 periodic reports filed with the Securities and Exchange Commission.  Success
 in early stage clinical trials or preclinical work does not ensure that later
 stage or larger scale clinical trials will be successful.
 
     Biogen, Inc., winner of the U.S. National Medal of Technology, is a
 biopharmaceutical company principally engaged in discovering and developing
 drugs for human healthcare through genetic engineering.  Headquartered in
 Cambridge, MA, the Company's revenues are generated from international 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 and hepatitis B vaccines and diagnostic products.
 Biogen's research and development activities are focused on novel products to
 treat inflammatory and autoimmune diseases, neurological diseases, cancer,
 fibrosis and congestive heart failure.  The Company maintains active clinical
 research programs in protein therapeutics, small molecules, genomics 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
 http://www.biogen.com
 
     AVONEX(R) (Interferon beta-1a) is a registered trademark of Biogen, Inc.
 AMEVIVE(TM) (alefacept) and ADENTRI(TM) (A1 Adenosine receptor antagonist) are
 trademarks of Biogen, Inc.  ANTEGREN(R) (natalizumab) is a registered
 trademark of Elan Corporation.  AVONEX is approved in the U.S. and in most
 other countries around the world for the treatment of relapsing forms of
 multiple sclerosis.
 
     NOTE:  The Company's earnings conference call for the first quarter will
 be broadcast via the Internet at 8:00 a.m. EST on Thursday, April 12, 2001,
 and will be accessible through the investor relations section of Biogen's
 homepage, http://www.biogen.com.  The call will be available for replay on the
 Biogen website until April 19, 2001.
 
 
                  Financial Results For The First Quarter of 2001
                    Condensed Consolidated Statements Of Income
                     (in thousands, except per share amounts)
 
                                                   Three Months Ended
                                                       March 31,
                                                 2001              2000
     REVENUES
 
     Product                                   $219,997          $174,596
 
     Royalties                                   17,050            42,252
 
     Total Revenues                             237,047           216,848
 
     COST AND EXPENSES
 
     Cost of revenues                            29,146            28,623
 
     Research and development                    72,770            63,006
 
     Selling, general and administrative         48,560            41,183
 
     Total Cost and Expenses                    150,476           132,812
 
     Income from Operations                      86,571            84,036
 
     Other income, net                           16,463            99,024
 
     INCOME BEFORE INCOME TAXES                 103,034           183,060
 
     Income Taxes                                30,911            61,694
 
     NET INCOME                                 $72,123          $121,366
 
     BASIC EARNINGS PER SHARE                     $0.49             $0.81
 
     DILUTED EARNINGS PER SHARE                   $0.47             $0.77
 
     SHARES USED IN CALCULATING:
 
          BASIC EARNINGS PER SHARE              148,188           150,360
 
          DILUTED EARNINGS PER SHARE            153,491           157,712
 
 
                       Condensed Consolidated Balance Sheets
                                  (in thousands)
 
                                            Mar. 31, 2001     Dec. 31, 2000
 
     ASSETS
     Current Assets
 
     Cash and marketable securities            $748,027          $682,412
 
     Accounts receivable, net                   146,804           143,178
 
     Other current assets                       110,041           102,681
 
     Total current assets                     1,004,872           928,271
 
     Property and equipment, net                428,625           400,429
 
     Other assets                                72,086           103,156
 
                                             $1,505,583        $1,431,856
 
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities                       $226,187          $221,021
 
     Long term debt & liabilities                99,039           104,433
 
     Shareholders' equity                     1,180,357         1,106,402
 
                                             $1,505,583        $1,431,856
 
 SOURCE  Biogen, Inc.