Idec (NASDAQ:IDPH)
Historical Stock Chart
From Jul 2019 to Jul 2024
Biogen and IDEC Pharmaceuticals Complete Merger to Create New Biotechnology
Industry Leader
CAMBRIDGE, Mass., and SAN DIEGO, Nov. 12 /PRNewswire-FirstCall/ -- 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 capitalize on the
momentum we have generated as individual companies and in our work planning for
a unified organization," 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 realization 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 centers 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 $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 $1.5 billion in net cash and manufacturing
expertise and capacity -- to achieve our goal of in-licensing approximately 50
percent 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 leukemia (CLL).
The company will begin with a balance sheet of more than $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
percent compound annual revenue growth and approximately 20 percent compound
annual cash earnings per share growth through 2007, and to generate cumulative
operating expense synergies of over $300 million and cumulative capital
expenditure synergies of over $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 commercialization of novel
therapies, Biogen Idec transforms scientific discoveries into advances in human
healthcare. For product labeling, press releases and additional information
about the company, please visit http://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: $1.55 billion
-- $1.5 billion net cash
-- Goal of achieving operating expense synergies of over
$300 million and cumulative capital expenditure synergies
of over $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 $1.1 billion in worldwide
sales in 2002.
RITUXAN has had the most successful and fastest
launch of any cancer therapy, with $1.48 billion
in worldwide sales in 2002. RITUXAN, a treatment
for certain B-cell non-Hodgkin's lymphomas, is
marketed in the U.S. under a copromotion
arrangement with Genentech, Inc., and outside the
U.S. by Roche and Zenyaku Kogyo. IDEC receives a
share of co-promotion profits from sales of
RITUXAN in the U.S., which was $324.5 million in
2002, and a royalty of sales outside the U.S.,
which was $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
U.S. in April 2002.
AMEVIVE(R) (alefacept) -- a biologic launched
in the U.S. 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. Centers 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.
http://www.newscom.com/cgi-bin/prnh/20031112/LAW121LOGO
http://photoarchive.ap.org/
DATASOURCE: Biogen Idec Inc.
CONTACT: 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
Web site: http://www.biogenidec.com/