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Biogen reveals strategic updates

Biogen Idec's CEO, James C Mullen, reveals the company's strategic growth opportunities to investors

Biogen Idec's CEO, James C Mullen, has outlined the company's strategic growth opportunities to investors at a various meetings.

Biogen's goal is to generate revenue growth at a 15 per cent compound annual growth rate (CAGR) and non-GAAP EPS at a 20 per cent CAGR from 2007 through 2010. The company is also aiming to continue the geographic diversification of its revenue base with more than 40 per cent derived from its international business by 2010.

Specifically, the company expects its growth to be driven by the continued strong sales of multiple sclerosis (MS) treatment, Avonex (Interferon beta-1a). Also, Mullen revealed the expansion of cancer treatment Rituxan (rituximab) into the therapy are of autoimmune diseases. He also aims to have 100,000 patients on the firm's new MS treatment, Tysabri (natalizumab), by the end of 2010.

Pipeline Highlights
Biogen has 15 product candidates in phase II clinical trials or beyond with more than 10 data readouts expected by the end of 2008.

The programs should 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.

Mullen said: "Over the past two years, we've successfully advanced multiple internal programmes. At the same time, we've pursued a business development strategy that has allowed us to access more than 10 molecules for less than USD 640m 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."

In the meetings, Mullen says he will discuss the following compounds: lumiliximab for chronic lymphocytic leukaemia; Rituxan for lupus; LT (beta) R-Fc for rheumatoid arthritis; long acting factor IX for haemophilia B; and HSP90 inhibition for blood and solid cancers.

Biogen reiterates FY07 financial guidance
On 24 July 2007, during a Q2 FY07 report, Biogen increased its FY07 guidance to total revenue growth of 16 to 18 per cent, compared with FY06. The company is also aiming for non-GAAP diluted EPS in the range of USD 2.60 to USD 2.70, representing 16 per cent to 20 per cent annual growth. The high value reflects the repurchase of USD 3bn of shares through the recently completed Dutch tender offer.

The 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. Biogen also predicts a GAAP diluted EPS in the range of USD 1.84 to USD 1.94, compared with USD 0.63 per share in FY06. The estimate includes the impact of the Cardiokine deal, but excludes any other future acquisitions or transactions.

At the time of the 2003 merger with Cardiokine, the company forecast 15 per cent CAGR in revenue and 20 per cent CAGR in non-GAAP EPS though to the end of 2007. If Biogen achieves these results, it will enable the company to fulfil financial goals by generating 14 per cent CAGR in revenue and 21 per cent CAGR in non-GAAP EPS though the end of 2007.

30th September 2008

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