Biogen (NASDAQ:BGEN)
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Biogen and IDEC Pharmaceuticals Complete Merger to Create New Biotechnology
Industry Leader
CAMBRIDGE, Massachusetts and SAN DIEGO, November 13 /PRNewswire/ -- IDEC
Pharmaceuticals Corporation and Biogen, Inc. announced today that
they have completed their merger transaction, creating a new global
biotechnology industry leader, with top products and capabilities in
oncology and immunology.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031112/LAW121LOGO)
Stockholders of both companies approved the merger and merger- related
proposals at special meetings held today, and all regulatory approvals and
closing conditions have been satisfied. The combined company, Biogen Idec
Inc., will commence trading on NASDAQ tomorrow under the stock symbol
"BIIB."
"We are excited to begin our new life as Biogen Idec and to capitalise
on the momentum we have generated as individual companies and in our work
planning for a unified organisation," said William H. Rastetter, Ph.D., the
company's Executive Chairman. "Based on our existing collaboration in
oncology, we knew that this combination would be an excellent fit, both
operationally and culturally. Yet it still has been gratifying to witness
the realisation of this vision over the past five months during our
integration planning process."
Biogen Idec begins operations with several impressive features,
including:
- Strong franchises in oncology and immunology, supported by centres of
excellence in San Diego and Cambridge;
- A diverse product portfolio and revenue base, with two blockbuster
drugs, AVONEX(R) (Interferon beta-1a) and RITUXAN(R) (rituximab), and 10
products in clinical development;
- An aggressive drug development program, with initiatives focused on
making Biogen Idec a strategic partner for companies seeking to develop
promising new therapies;
- A strong commitment to pioneering new standards of care through an
expected annual R&D budget of more than US$550 million and 1,000 dedicated
R&D employees, including approximately 400 in discovery research; and
- Global reach, including operations in 16 European countries, as well
as Japan, Canada, Australia, and New Zealand. A vast network of
distributors sells Biogen Idec products in over 50 countries.
"Since the announcement of our proposed merger in June, our lead
products AVONEX and RITUXAN have performed exceptionally well, and we have
continued to mark progress in our combined late-stage pipeline," said James
C. Mullen, Biogen Idec's Chief Executive Officer. "In addition, Biogen Idec
will leverage strategic assets -- including US$1.5 billion in net cash and
manufacturing expertise and capacity -- to achieve our goal of in-
licensing approximately 50 per cent of our pipeline by 2010."
Biogen Idec's pipeline of products in development includes ANTEGREN(R)
(natalizumab), which, in partnership with Elan Corporation plc, is in Phase
III clinical studies for the treatment of multiple sclerosis and Crohn's
disease; RITUXAN which is in Phase III trials for rheumatoid arthritis and
other cancer indications; the second-generation oral fumarate, which is in
Phase III clinical trials in Europe; and an anti-CD23 antibody, which will
soon enter Phase II trials for chronic lymphocytic leukaemia (CLL).
The company will begin with a balance sheet of more than US$1.5 billion
in net cash, and a commitment toward delivering on each of the financial
goals it has articulated since the merger was announced. The company
expects to achieve 15 per cent compound annual revenue growth and
approximately 20 per cent compound annual cash earnings per share growth
through 2007, and to generate cumulative operating expense synergies of
over US$300 million and cumulative capital expenditure synergies of over
US$175 million through 2007.
The Board of Directors of Biogen Idec will consist of 12 directors, six
from each company, including Mr. Mullen and Dr. Rastetter. Dr. Rastetter
will serve as Executive Chairman of the Board of Directors. The 10
non-employee Board members are Alan Belzer, Lawrence C. Best, Alan B.
Glassberg, M.D., Mary L. Good, Ph.D., Thomas F. Keller, Robert W. Pangia,
Bruce R. Ross, the Honorable Lynn Schenk, Phillip A. Sharp, Ph.D. and
William D. Young.
In addition to Dr. Rastetter and Mr. Mullen, Biogen Idec's executive
officers are:
- Burt A. Adelman, M.D., Executive Vice President, Development;
- Thomas J. Bucknum, Executive Vice President, General Counsel, and
Secretary;
- John M. Dunn, Executive Vice President, New Ventures;
- Nabil Hanna, Ph.D., Executive Vice President, Research;
- Peter N. Kellogg, Executive Vice President, Chief Financial Officer;
- Connie Matsui, Executive Vice President, Corporate Strategy and
Communication;
- William R. Rohn, Chief Operating Officer; and
- Craig E. Schneier, Ph.D., Executive Vice President, Human Resources
As a result of the merger, each share of Biogen common stock was
converted into the right to receive 1.15 shares of Biogen Idec common
stock.
About Biogen Idec
Biogen Idec creates new standards of care in oncology and immunology.
As a global leader in the development, manufacturing, and commercialisation
of novel therapies, Biogen Idec transforms scientific discoveries into
advances in human healthcare. For product labelling, press releases and
additional information about the company, please visit www.biogenidec.com .
Safe Harbor
This press release contains "forward-looking" statements including
statements regarding anticipated future financial and operating performance
and results, including estimates for growth expected synergies, and
expectations for our products and plans for development and expansion of
our pipeline. These statements are based on the company's current
expectations. There are a number of risks and uncertainties that could
cause actual results to differ materially. For example, problems may arise
in successfully integrating the two companies. We may be unable to achieve
cost- cutting synergies. The market for our products may change or be
impacted by competition, new data, supply issues or marketplace trends.
Technical, regulatory or manufacturing issues, new data or intellectual
property disputes may affect our programs or we may encounter other
difficulties in developing our pipeline or in gaining approval of new
products.
For more detailed information on the risks and uncertainties associated
with the company's business activities see Biogen's and IDEC
Pharmaceuticals' reports filed with the SEC. The company does not undertake
any obligation to publicly update its forward-looking statements, whether
as a result of new information, future events, or otherwise.
Contacts:
Investment Community
Elizabeth Woo
Senior Director, Investor Relations
Biogen Idec
617-679-2812
Media
Tim Hunt
Director, Public Affairs
Biogen Idec
617-914-6524
Key highlights of Biogen Idec Inc.
Financial:
-- Pro forma 2002 revenues: US$1.55 billion
-- US$1.5 billion net cash
-- Goal of achieving operating expense synergies of over US$300 million
and cumulative capital expenditure synergies of over US$175 million through
2007.
Employees: Approximately 4,000 people worldwide.
Therapeutic focus: Leadership in core therapeutic areas of oncology,
neurology, and dermatology.
Blockbuster products: AVONEX is the #1 product for relapsing multiple
sclerosis, with over US$1.1 billion in worldwide sales in 2002.
RITUXAN has had the most successful and fastest launch of any cancer
therapy, with US$1.48 billion in worldwide sales in 2002. RITUXAN, a
treatment for certain B-cell non-Hodgkin's lymphomas, is marketed in the US
under a co-promotion arrangement with Genentech, Inc., and outside the US
by Roche and Zenyaku Kogyo. IDEC receives a share of co-promotion profits
from sales of RITUXAN in the US, which was US$324.5 million in 2002, and a
royalty of sales outside the US, which was US$45.43 million in 2002.
Recent product launches: ZEVALIN(R) (ibritumomab tiuxetan) - -
radioimmunotherapy for the treatment of certain B-cell non-Hodgkin's
lymphomas, launched in the US in April 2002.
AMEVIVE(R) (alefacept) -- a biologic launched in the US in February
2003 for the treatment of adult patients with moderate-to- severe chronic
plaque psoriasis who are candidates for systemic therapy or phototherapy.
Pipeline products: Strong pipeline in oncology and immunology,
including RITUXAN in Phase III clinical trials for rheumatoid arthritis and
other cancer indications; ANTEGREN in Phase III trials for MS and Crohn's
disease; and the second-generation oral fumarate, which is in Phase III
clinical trials for psoriasis in Europe. In addition, the company has four
products in Phase II trials.
R&D capabilities: Pioneer in leading-edge oncology, immunology, and
neurobiology research. Centres of excellence in research in Cambridge, MA
and San Diego, CA.
Manufacturing: 3 biological bulk-manufacturing facilities including a
250,000 square-foot, large-scale manufacturing facility in Research
Triangle Park, NC to manufacture bulk protein -- one of the largest cell
culture facilities in the world.
Currently constructing world-class facility for manufacture of
biologics in Oceanside, CA. Recently finished construction of 70,000 sq.
ft. facility for the manufacture of biologics for clinical trials.
Global infrastructure: Operations in 16 European countries, as well as
Japan, Canada, Australia, and New Zealand. A vast network of distributors
sells Biogen Idec products in over 50 countries.
Web site: http://www.biogenidec.com
Investment Community, Elizabeth Woo, Senior Director, Investor Relations of
Biogen Idec, +1-617-679-2812, or Media, Tim Hunt, Director, Public Affairs of
Biogen Idec, +1-617-914-6524 Photo: NewsCom: http://www.newscom.com/cgi-
bin/prnh/20031112/LAW121LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com