Biogen Idec Announces Strategic Updates at Investor Meetings



    Strong Growth Cycle Drives Goal of 15% Top-Line CAGR and 20% Bottom-Line
CAGR Through 2010

    15 Products in Phase 2 or Beyond to Contribute to Mid-to-Long Term Growth

    CAMBRIDGE, MASS., September 6 /CNW/ - In presentations to investors today
and over the next week, Biogen Idec (NASDAQ:   BIIB) CEO James C. Mullen will
outline key growth opportunities and review the company's long-range strategic
and financial goals. Mullen is scheduled to speak at the Thomas Weisel
Partners Healthcare Conference at 8 a.m. today in Boston and the Bear Stearns
Healthcare Conference on Sept. 10 in New York. Both presentations will be
available via webcast on the Investor Relations section of www.biogenidec.com.
Supplemental information in the form of a slide presentation will also be
accessible on the internet at the same location at the time of each
presentation and will remain on the Biogen Idec website until at least
September 30, 2007.

    Financial Goals

    Biogen Idec will announce its goal to generate revenue growth at a 15%
compound annual growth rate (CAGR) and non-GAAP EPS at a 20% CAGR from 2007
through 2010.

    These financial goals reflect the strong growth momentum already underway
at Biogen Idec. Specifically, the company expects its growth to be driven by:

    --  Continued solid performance of AVONEX(R) (Interferon beta-1a), the
world's leading multiple sclerosis treatment;

    --  Expansion of RITUXAN(R) (rituximab), the world's leading cancer
treatment, into autoimmune diseases;

    --  Achieving the milestone of 100,000 patients on TYSABRI(R)
(natalizumab) by year-end 2010; and,

    --  Continued geographic diversification of its revenue base with more
than 40% of revenue from its International business by 2010.

    "Now that Biogen Idec is more than a year into the reintroduction of
TYSABRI in the U.S., and we have launched and gained reimbursement for this
important therapy in the major European markets, we are providing greater
detail regarding our goals for long-range growth," Mullen said. "Over the
near- to mid-term, we expect to see continued strong performances by AVONEX
and RITUXAN as well as the emergence of TYSABRI as the world's leading therapy
for patients with multiple sclerosis."

    Pipeline Highlights

    The company has 15 product candidates in Phase 2 clinical trials or
beyond with more than 10 data readouts expected by the end of 2008. These
programs are expected to contribute to similar top-line growth over the longer
term. By 2010, the company's goal is to have four new products and/or existing
products launched in new indications as well as six programs in late-stage
clinical development.

    "Our growth goals reflect the contribution of our robust pipeline,"
Mullen said. "Over the past two years, we've successfully advanced multiple
internal programs. At the same time, we've pursued a business development
strategy that has allowed us to access more than 10 molecules for less than
$640 million in upfront payments. We plan to continue growing our core
therapeutic areas while expanding into new areas with a focus on
first-in-class and best-in-class products."

    As part of the presentation, Mullen will discuss several promising
programs: lumiliximab for chronic lymphocytic leukemia; RITUXAN for lupus;
LTBR-Fc for rheumatoid arthritis; long acting factor IX for hemophilia B; and
HSP90 inhibition for blood and solid cancers.

    2007 Financial Guidance Reiterated

    Mullen will reiterate guidance for the full-year 2007. On July 24, in
reporting its second-quarter financial results, the company increased the
full-year guidance to:

    --  Total revenue growth of 16%-18% over 2006;

    --  Non-GAAP diluted EPS - reflecting the repurchase of $3 billion of
shares through the recently completed Dutch tender offer - in the range of
$2.60 to $2.70, representing 16% to 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; and,

    --  GAAP diluted EPS in the range of $1.84 to $1.94, versus $0.63 per
share in 2006. This estimate includes the impact of the 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:

    --  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.

    At the time of the merger in 2003, the company forecast 15% CAGR in
revenue and 20% CAGR in non-GAAP EPS though the end of 2007. Achievement of
this full-year 2007 guidance would enable the company to fulfill those
financial goals by generating 14% CAGR in revenue and 21% CAGR in non-GAAP EPS
though the end of 2007.

    GAAP EPS Reconciliation

    On a reported basis, calculated in accordance with accounting principles
generally accepted in the U.S. (GAAP), the company aims to grow GAAP EPS from
2007 through 2010 at a 25% CAGR. The long-term non-GAAP EPS goal excludes the
impact of purchase accounting, merger-related adjustments, stock option
expense, and their related tax effects. In order to reconcile long-term GAAP
and non-GAAP EPS figures, the company has excluded the following items for
2008 through 2010 from our non-GAAP EPS goal provided above:

    --  Purchase accounting charges, including amortization of acquired
intangible assets and IPR&D, is estimated to be $760-$800 million for already
completed transactions;

    --  Stock option expense due to FAS 123R is estimated to be in the range
of $80-$90 million;

    --  Tax benefit of $220-$240 million related to the pre-tax reconciling
items.

    Because the company cannot predict with certainty the nature or the
amount of non-operating or unusual charges through 2010, it has made no
assumption regarding new purchase accounting charges in this GAAP EPS goal.
The company may incur charges or realize income through 2010 which could cause
actual results to vary from the goal.

    Use of Non-GAAP Financial Measures

    "Non-GAAP EPS" financial measures are defined as reported, or GAAP, EPS
excluding, for the reasons discussed below, (1) purchase accounting and
merger-related adjustments, (2) stock option expense and (3) other items.
Management uses these non-GAAP financial measures to establish financial goals
and gain an understanding of the comparative financial performance of the
company from year to year and quarter to quarter. Accordingly, Biogen Idec
believes 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, EPS.

    Purchase accounting and merger-related adjustments - Non-GAAP 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 Corp. and Syntonix Pharmaceuticals, Inc. These include charges
for in process research and development and the incremental charge to cost of
goods sold from the company's 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 the company's 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 - Non-GAAP net income and diluted EPS exclude the
impact of our stock option expense recorded in accordance with SFAS No. 123R
and the cumulative effect of an accounting change relating to its initial
adoption. The company believes that excluding the impact of expensing stock
options better reflects the recurring economic characteristics of our
integrated business. The company does include the P&L impact of restricted
stock awards and other cash incentives in its non-GAAP results.

    Other items - Non-GAAP net income and diluted EPS exclude other unusual
or non-recurring items that are evaluated on an individual basis. The
evaluation of whether to exclude an item for purposes of determining our
non-GAAP financial measures considers both the quantitative and qualitative
aspects of the item, including, among other things (i) its size and nature,
(ii) whether or not it relates to the company's ongoing business operations,
and (iii) whether or not the company expects it to occur as part of its normal
business on a regular basis. Items excluded for purposes of determining
non-GAAP net income and diluted EPS are severance and restructuring charges
and a gain on sale of long-lived assets.

    About Biogen Idec

    Biogen Idec creates new standards of care in therapeutic areas with high
unmet medical needs. Founded in 1978, Biogen Idec is a global leader in the
discovery, development, manufacturing, and commercialization of innovative
therapies. Patients in more than 90 countries benefit from Biogen Idec's
significant products that address diseases such as lymphoma, multiple
sclerosis, and rheumatoid arthritis. For product labeling, press releases and
additional information about the company, please visit www.biogenidec.com.

    Safe Harbor

    This press release contains forward-looking statements about our expected
revenues, earnings, product sales, product development and other matters.
Forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from that which we expect. Important
factors that could cause our actual results to differ include our continued
dependence on our two principal products, AVONEX and RITUXAN, the uncertainty
of success in commercializing other products including TYSABRI, the occurrence
of adverse safety events with our products, the failure to execute our growth
strategy successfully or to compete effectively in our markets, our dependence
on collaborations over which we may not always have full control, possible
adverse impact of government regulation and changes in the availability of
reimbursement for our products, problems with our manufacturing processes and
our reliance on third parties, fluctuations in our operating results, our
ability to protect our intellectual property rights and the cost of doing so,
the risks of doing business internationally and the other risks and
uncertainties that are described in Item 1A "Risk Factors" in our most recent
Form 10-Q filing with the SEC. These forward-looking statements speak only as
of the date of this press release, and we do not undertake any obligation to
publicly update any forward-looking statements, whether as a result of new
information, future events, or otherwise.




For further information:

For further information: Biogen Idec MEDIA CONTACTS: Naomi Aoki,
617-914-6524 Director, Public Affairs or INVESTOR CONTACTS: Elizabeth Woo,
617-679-2812 Vice President, Investor Relations

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