Biogen Annual Report 2013

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FY2013 Annual Report · Biogen

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2 0 13 A N N U A L R E P O RT | B I O G E N I D E C. C O M / A R2 013

“My passion is my life — and my
quality of life — day in, day out.”

Kate Ouellette,
volunteer, small business owner, mother and wife

4 | BIOGENIDEC.COM/AR2013

FINANCIAL HIGHLIGHTS

$6,932

$5,516

$8.96

$6.53

$5.90

$5,049

$4,716

$4,377

$5.15

$4.12

$1,452

$1,520

$1,625

$2,099

$909

09 10 11 12 13

Revenues
$ in millions

Non-GAAP Diluted EPS*

Free Cash Flow*
$ in millions

*Non-GAAP diluted Earnings Per Share (EPS) and free cash flow are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP
diluted EPS and free cash flow amounts are set forth on pages 20 and 21 of this annual report.

1 | BIOGENIDEC.COM/AR2013

“Biogen Idec is in the business of
understanding patient needs and the
biology of disease. We are in the business
of transforming the lives of the patients
we serve. Ultimately, our success will
be measured by the impact we have on
people’s lives — and the quality of life
associated with that change.”

George A. Scangos, Ph.D.
Chief Executive Officer

2 | BIOGENIDEC.COM/AR2013

George A. Scangos, Ph.D.
Chief Executive Officer

Dear Fellow Shareholders

2013 was an excellent year for Biogen Idec and the patients we serve, marked by important
commercial and clinical progress as we brought important new therapies to market, advanced
the next generation of potential treatments through the pipeline and prepared for critical
readouts on investigational compounds that we expect to shape our future.

A year ago I wrote to you that our company
is fully aligned behind a crisply defined
mission and business strategy. Today, I can
say that we are increasingly confident in our
approach, and remain deeply committed
to robust investment in the science that
is our heritage and will be our future.

And once again, we achieved strong financial
results. Revenue for 2013 was $6.9 billion,
an increase of 26% from 2012, and we
enjoyed double-digit growth in both earnings
per share and free cash flow.

Looking toward 2014, we are at a significant
point of transformation in our business, going

3 | BIOGENIDEC.COM/AR2013

from three major marketed products in
2013, to potentially six. We expect our
growth will be driven by the continued
success of our marketed therapies, the
introduction of TECFIDERA® to multiple
sclerosis (MS) patients in worldwide markets
and by anticipated approvals and advances
from our late- and mid-stage pipeline.

Each of the compounds in our pipeline has
the potential to significantly improve patients’
lives, and in some cases they have the
potential to result in therapies for diseases
that currently have limited or no treatment
options. The success of these development
programs will play an important role in
defining the future of Biogen Idec. And it is
our belief that our future has never been as
promising as it is today.

to conduct multiple proof-of-concept and
late-stage clinical trials, while demonstrating
an ability to manufacture and commercialize
new therapies on a global scale.

The launches of TECFIDERA in the U.S.,
Canada and Australia went exceedingly
well and may prove to be one of the
most successful launches in the history
of our industry. This was the result of
meticulous planning and execution by our
commercial team, in combination with a
favorable physician and patient experience.
TECFIDERA became the number one
prescribed oral MS therapy in the U.S. —
and after only nine months on the market
more than 6,000 physicians (representing
approximately 85% of total MS prescription
volume) had prescribed TECFIDERA.

$6.9B

in revenue for 2013, an increase of 26% from 2012

The stage is now set for what I believe will
be a very exciting period in the history of
our company. By staying true to our core
scientific and commercial expertise, and
focusing on diseases with significant unmet
needs where our scientific capabilities give
us a unique advantage, we are working
to ensure our long-term success.

ADVANCING COMMERCIAL SUCCESS

Biogen Idec occupies an unusual space
in the biopharmaceutical industry. Our
dedication to science and our culture
resemble a nimble biotechnology company.
Yet, we have the capacity and capabilities

We are very encouraged by the initial
success of TECFIDERA and its potential.
At the same time, we know that we need
to remain diligent to fully capitalize on this
success and it will require a strong and
sustained effort to ensure that the greatest
number of patients have the opportunity to
benefit from TECFIDERA over the long term.

Early in 2014, the European Commission
approved TECFIDERA for marketing in Europe
as a first-line oral therapy for relapsing-remitting
MS. We are currently working with regulators
in European countries to make TECFIDERA
available to patients — with launches in coming
months based on pricing discussions with
authorities in individual countries.

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While the launch of TECFIDERA is clearly
a major milestone in our company’s history,
we also made significant advances in other
aspects of our MS franchise in 2013.

We further expanded our commitment to
MS as we acquired full ownership to all
of the rights to TYSABRI® from our former
collaboration partner, Élan Corporation.
We believe that full ownership of TYSABRI
improves our ability to optimally position
TYSABRI within our MS portfolio. Because of
its powerful efficacy, TYSABRI offers unique
benefits for people living with MS. And
because of the investments we have made
in understanding the risks associated with
treatment, more patients are now able to
benefit from this therapy.

In the U.S. market, TYSABRI growth in
2013 was slowed due to the impact of the
launch of TECFIDERA, but we expect that
to level off as switching from TYSABRI to
TECFIDERA naturally diminishes. We are
continuing to place a strong commercial
focus on TYSABRI’s differentiated product
profile, coupled with ongoing improvements
in risk stratification, which remains very
important for the success of this product.

Last year we presented new data for
TYSABRI that reaffirms its powerful efficacy,
and we also made progress in our Phase
III trial of TYSABRI for the treatment of
secondary progressive MS (SPMS). If the
results from this study are positive, we may
have the potential to expand TYSABRI use
into this vastly underserved population.

AVONEX® remains our most prescribed
MS treatment, and we are continuing to
grow revenue and market share within the
injectable segment. In 2013, AVONEX global

revenues exceeded $3 billion for the first time.
The launch of new MS therapies, including
TECFIDERA, has caused contraction in
the injectable segment, and we expect this
segment to continue to decline over time.
However, it remains a significant opportunity
in the medium term and we believe we are
well positioned with the AVONEX PEN®
and potentially PLEGRIDY™ should it be
approved, as convenience continues to
be a key differentiator.

FAMPYRA®, which we market in Europe
under license from Acorda Therapeutics,
is the first treatment indicated for the
improvement of walking ability in adult
patients with MS. We continue to achieve
growth with FAMPYRA, which was approved
for patients in 16 new countries last year.

We believe we are well positioned in the MS
space, with leading therapies in the oral, high-
efficacy and injectable segments. Patients
and physicians are seeking a range of
treatment options and we believe we have the
portfolio to address the diverse needs of this
population, while our years of experience and
unparalleled understanding of this disease
give Biogen Idec a meaningful advantage.

FROM PIPELINE TO PATIENTS

Our commitment to visionary science in
pursuit of new therapies for diseases with
inadequate or no treatment options is more
pronounced than ever as we consider the
potential for our pipeline in the year ahead.

In hemophilia our goal is to become the
market leader, as we have done in MS, and
we are taking the steps necessary to do so.

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KATE OUELLETTE

VOLUNTEER, SMALL BUSINESS OWNER,
MOTHER AND WIFE

“MS HAS FORCED ME TO DANCE A NEW DANCE IN MY LIFE. MY PASSION IS MY LIFE — AND MY
QUALITY OF LIFE — DAY IN, DAY OUT.”

Kate Ouellette is a volunteer, small business
owner, mother and wife. Kate’s journey with
multiple sclerosis began without a diagnosis.
She developed optic neuritis and a blind
spot, but multiple sclerosis was not even
considered at the time. After several years of
inexplicable health events, Kate underwent
a series of MRIs and a spinal tap. She and
her doctors finally had confirmation: multiple
sclerosis. With the diagnosis, Kate was sad,
angry, scared and relieved all at the same time.

“When I was first diagnosed, I was very
worried that I would have to give up
everything that I loved doing, and that I
would be alone in a bubble with my MS.

I felt isolated, and the uncertainty was huge.
But I was also relieved to know what was
going on with my health so I could talk to
a specialist and start treatment.”

Since her diagnosis, she has reprioritized
how she spends her time, and has been able
to pick up some new activities, including
exercise and participating in walks to raise
money for multiple sclerosis charities.

Kate believes that being consistent with her
therapy helps to keep her stable and has
allowed her to continue doing the things she
loves. She has not missed a dose of AVONEX
since she began therapy 11 years ago.

MS ActiveSource® Advocates have chosen to share their stories with other people living with MS. Each of these stories reflects the personal
experiences of one person, and stories are not intended to imply any therapeutic benefit, results or experiences with Biogen Idec products.

6 | BIOGENIDEC.COM/AR2013

Hemophilia represents a $7 billion global
market, and it’s an area where there has been
no major innovation in nearly two decades.
A big challenge for patients is that current
therapies require frequent intravenous
injections, which makes prophylactic
treatment a significant treatment burden.
So there is a real need for treatments
with a reduced dosing frequency.

In March 2014 we received U.S. Food
and Drug Administration (FDA) approval to
market ALPROLIX™ [Coagulation Factor IX
(Recombinant), Fc Fusion Protein] for the
control and prevention of bleeding episodes
and routine prophylaxis in adults and children
with hemophilia B. ALPROLIX was also
approved by Health Canada in March 2014.

The approval of ALPROLIX marks the first
significant treatment advance in hemophilia
B in more than 17 years, and reinforces
our commitment to developing innovative
therapies that help address the critical
needs of the hemophilia community.

In addition to ALPROLIX, we are continuing
to pursue a treatment option for hemophilia
A. In 2013 we filed a regulatory application
for our hemophilia candidate, ELOCTATE™
[Antihemophilic Factor (Recombinant Fc
Fusion Protein)], in the United States, Japan,
Canada and Australia.

ALPROLIX and ELOCTATE use a protein
technology called Fc fusion that enables
prolonged circulation in the body. In clinical
trials among adults with hemophilia, both
ALPROLIX and ELOCTATE significantly
extended the time between prophylactic
infusions and have the potential to greatly
reduce the number of infusions required
over the course of a year. We believe this

may offer people with hemophilia a lower
burden of treatment and improved adherence
to prophylactic regimens.

In 2013 we submitted a Biologics License
Application (BLA) to the FDA and a Marketing
Authorisation Application to the European
Medicines Agency (EMA), for marketing
approval of PLEGRIDY for relapsing forms
of MS. The regulatory submissions were
based on the results from the first year of the
two-year global Phase III study for PLEGRIDY,
supporting PLEGRIDY as a potential
treatment dosed every two or four weeks.

If approved, PLEGRIDY is expected to be
the first interferon for the treatment of MS,
providing a combination of benefits across
key disease measures (e.g., reduction in
relapses, disability progression, number of
MS lesions), and a favorable safety profile.
With these characteristics, we believe
PLEGRIDY will become a preferred treatment
option in the injectable segment for many
people living with MS.

We also have made significant advances
with our anti-CD20 franchise through our
collaboration with Genentech (a wholly owned
member of the Roche Group). In November
2013, Roche announced the FDA’s approval
of GAZYVA™ for previously untreated chronic
lymphocytic leukemia (CLL). GAZYVA is a
humanized anti-CD20 antibody designed to
improve upon the efficacy of RITUXAN® — and
was the first drug with breakthrough therapy
designation to obtain FDA approval. RITUXAN,
which is marketed by Genentech under our
collaboration with them, is a key component of
standard therapy regimens for Non-Hodgkin’s
Lymphoma and CLL.

7 | BIOGENIDEC.COM/AR2013

DANIEL WARREN

2013 BIOGEN IDEC HEMOPHILIA
SCHOLARSHIP WINNER

“HEMOPHILIA IS AN OBSTACLE THAT I WORK TO OVERCOME. IT IS SOMETHING I LIVE WITH.
BUT, IT DOESN’T CONFINE ME.”

Daniel Warren is a musician, swimmer, son
and brother. He also has lived his entire life
with hemophilia.

“Having hemophilia has taught me two major
lessons by which I live: never waste time and
never be afraid to seize an opportunity.”

Last year, Daniel did just that. Seizing an
opportunity presented to him by a professor
meant Daniel was off to Montreal to study
abroad in one of the jazz capitals of the world
— a musician and music educator’s dream.

Following his studies in Canada, Daniel went
on to complete his undergraduate degree
and plans to teach music and pursue further
studies in music education, including
a doctorate degree.

“Hemophilia is an obstacle that I work to
overcome. It is something I live with. But, it
doesn’t confine me. Achieving in my studies,
excelling in music and spending as much
time outdoors as possible bring joy and
beauty to my life.”

Each of these stories reflects the personal experiences of one person, and stories are not intended to imply any therapeutic benefit, results
or experiences with Biogen Idec products. www.biogenidechemophiliascholarships.com

8 | BIOGENIDEC.COM/AR2013

Looking forward, we expect pivotal readouts
over the next few years from our late-stage
pipeline: Daclizumab HYP, which we are
developing in partnership with AbbVie, is
expected to complete a Phase III trial of
relapsing-remitting MS (RRMS) in 2014, and
TYSABRI is expected to complete a Phase
III trial in secondary progressive MS in 2015.
In addition, we are anticipating proof-of-
concept data on many of our early- and
mid-stage product candidates over the
next 12 to 18 months including:

• Anti-LINGO, a monoclonal antibody that,

in preclinical studies, enhances re-myelination
and axonal protection. There are two Phase
II proof-of-concept trials underway with anti-
LINGO. The first is in acute optic neuritis and
the second is in MS.

• STX-100 is our monoclonal antibody under

development for idiopathic pulmonary fibrosis
(IPF), a debilitating disease that is usually
fatal. STX-100 may block an important
pathway, helping to slow the development
of the fibroses in IPF patients.

• Neublastin is a novel biologic under

development for neuropathic pain. Neublastin
interacts with the GFR α 3 receptor on
pain-sensing neurons and has been shown
to promote nerve regeneration in preclinical
models of nerve crush.

• BIIB037 is a selective beta-amyloid targeted
monoclonal antibody for Alzheimer’s disease.
It is differentiated from other beta-amyloid
antibodies in development as in preclinical
studies it appears to preferentially bind
to the fibular forms of beta-amyloid, which
form pathogenic amyloid plaques.

• SMNRx is an antisense molecule for

Spinal Muscular Atrophy (SMA), which
is the most common genetic cause of death
in children. The FDA granted Orphan Drug
Designation with Fast Track Status to ISIS-
SMNRx for the treatment of patients with SMA.

ISIS-SMNRx is being developed under our
collaboration with Isis Pharmaceuticals.

A PASSION FOR INNOVATION

Innovation distinguishes Biogen Idec. Within
our areas of expertise — specialty neurology,
immunology and non-malignant hematology —
we continue to identify adjacencies where the
science leads us.

For example, in neurology we are performing
research to understand and map the
pathways involved in progressive forms
of MS, neuropathic pain and amyotrophic
lateral sclerosis (ALS).

In immunology, where we have focused on
diseases such as lupus and lupus nephritis,
we intend to do more in the related areas
of fibrotic diseases. And in hematology,
through our recent agreement with Sangamo
BioSciences, we are advancing research
in sickle-cell anemia and beta-thalassemia.

We also are focusing on new therapeutic
modalities. Biogen Idec was built on the
foundation of biotechnology, and with
TECFIDERA, we have significantly expanded
our capabilities in small molecules. To that
end, last year we entered into an agreement
with Amicus Therapeutics to use their
research platform and expertise in discovering
and developing small molecule drugs to
reduce alpha-synuclein accumulation, a
hallmark of Parkinson’s disease pathology.

We are exploring gene editing therapies
with Sangamo BioSciences, and RNA-
based therapies in collaboration with Isis
Pharmaceuticals. In 2013, we expanded
our relationship with Isis to further employ
antisense technology in a number of

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neurological diseases, including myotonic
dystrophy type 1 (DM1), the most common
form of muscular dystrophy in adults.

Science is the heart and soul
of Biogen Idec. More than
three decades later, the way
we approach science — and
the company itself — has
returned to its roots.

To advance our efforts in immunology,
we signed a collaboration agreement with
BioFocus, a subsidiary of Galapagos NV,
to identify and validate novel targets in
scleroderma, an autoimmune disease that
causes hardening of the skin and can also
impact organs.

In 2014 we plan to pursue additional new
business development opportunities and
continue to bring in high-potential candidates
and technology platforms that strengthen
our pipeline — and already this year we
have announced a significant agreement
with Eisai to develop and commercialize two
of their candidates for Alzheimer’s disease
(AD). These include E2609, a α-site amyloid
precursor protein cleaving enzyme (BACE)
inhibitor, and BAN2401, an anti-Aβ antibody.
These candidates have the potential to reduce
Aβ plaques that form in the brains of patients
with AD, and to slow the formation of new
plaques, potentially improving symptoms
and suppressing disease progression.

In addition to our industry partnerships,
we believe collaborations with top academic
researchers are critical for maintaining a
vibrant and innovative research organization —
and we have taken a unique approach
to assemble and share data and research
to tackle challenges where a single institution
alone might be limited. We have a number of
ongoing innovative collaborations with leading
research institutions as we work together to
further understand the causes and potential
treatments for complex diseases such as ALS.

To further strengthen our focus on research,
in 2013 we completed the relocation of
our corporate headquarters — and a large
majority of our U.S.-based workforce —
back to Cambridge, Massachusetts. This
decision is facilitating the recruitment of
top scientific talent and fostering greater
collaboration internally and in the community
among our science and industry peers.
Science is the heart and soul of Biogen
Idec. More than three decades later, the
way we approach science — and the
company itself — has returned to its roots.

PREPARING FOR LONG-TERM GROWTH

Our rapidly growing commercial portfolio
and pipeline present us with tremendous
opportunities to change the lives of people
living with serious illnesses around the
world. It is our responsibility to ensure
that we achieve the full potential of each
of these assets.

As we have seen over the last several
years, the environment for biomedical
innovation, patient care and the provision
of health services continues to evolve as
payers and governments seek verifiable

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improvements in the quality and value of
the healthcare services they finance. We
believe that we are well positioned to
compete in this changing environment. We
are investing in clinical and health economics
and outcomes research specifically intended
to ensure access, reimbursement and,
most importantly, a clear understanding
of the clinical utility of our products. We
are supporting clinical data with robust
intellectual property and other regulatory
protections and efficient supply chain
infrastructure to ensure product availability.

As countries globally continue to wrestle
with economic pressures, we remain
focused on demonstrating the value of our
products as we concentrate our research
efforts in areas of high unmet medical need,
engaging in innovative science that provides
measurable value and creates evidence to
support the benefits of our products among
competitors. At the same time, our ability to
bring new treatments to patients in Europe
may be affected by the policy and regulatory
environment and decisions made at both the
EU and member state levels that impact the
biopharmaceutical industry as a whole.

Continued innovation and access to
treatments, and fair reimbursement for
innovative products, depend in large part
on certainty around intellectual property
and other regulatory protections, which
are necessary to ensure that we are able
to make the long-term investments that
biopharmaceutical innovation requires.

For Biogen Idec, global expansion and focus
on new markets is taking two simultaneous
tracks — one based on building strategic
organizations in markets where there are
clear regulatory and reimbursement paths

and, in others, creating distribution models
that enable us to get therapies to patients
in the short term while maintaining an ability
to build and grow our presence in the
coming years.

We remain on pace to double the size of
our operations in Japan in 2014 and we are
continuing to strengthen our Japan-based
commercial, R&D and medical organizations.
We have five ongoing clinical trials in Japan
and we just recently received approval
of TYSABRI there. We also anticipate our
hemophilia product and product candidate
may be available by 2015. The Japanese
government’s long-term commitment
to rewarding innovation and focus on
healthcare as a source of economic growth
are strong reasons to be confident in our
ongoing investments there.

Further, we strengthened our ability to ensure
access to our medicines in the Asia-Pacific
region through our distribution agreement
with UCB, which grants UCB the right to
commercialize certain Biogen Idec products
in China, Korea and across Southeast Asia.

Working to meet societal demands for
access to effective therapies at reduced
cost, we agreed with our joint venture
partner, Samsung Bioepis, to commercialize
biosimilar anti-TNF product candidates
in Europe. These are expected to include
biosimilars for widely used therapies to treat
conditions such as rheumatoid arthritis and
Crohn’s disease. If approved, we will be
responsible for commercialization of these
product candidates across Europe.

Our business approach recognizes the
need for access to lower-priced medicines
for many global stakeholders through our

11 | BIOGENIDEC.COM/AR2013

RYAN KAPLAN

HIGH SCHOOL PRINCIPAL, OUTDOORSMAN,
HUSBAND AND FATHER

“I REACHED MY POINT OF ACCEPTANCE 10 YEARS AGO. NOW, I AM TAKING MY MS TO THE NEXT
LEVEL TO HELP OTHERS.”

Ryan Kaplan is high school principal,
outdoorsman, husband and father. He
has also been living with multiple sclerosis
for 18 years. He first began experiencing
numbness and weakness during a cross-
country cycling trip when he was just
16 years old. The diagnosis of relapsing-
remitting multiple sclerosis soon followed.

“I was away from home and went to the ER.
Three months later, a specialist said it was
possible MS and to start treatment. That
doctor’s decision saved the quality of my life.
Consistent therapy has afforded me my health
and allowed me to continue an active lifestyle.”

Ryan spent the first eight years after his
diagnosis in denial. “MS was my secret.

I was in hiding, and I didn’t tell anyone.
I stopped cycling. I stopped the things
that made me, me.”

Ryan credits much of his success living
with MS to his first doctor who started him
on treatment and to Biogen Idec. “Eventually,
I was prescribed AVONEX and recently
switched to TYSABRI. I have tried other
therapies, but Biogen Idec really is my
saving grace.”

Today, Ryan is married, with two young
children and a dog. He works hard and
has renewed his love of cycling. In his spare
time, he also serves as an advocate to raise
awareness for MS with a personal goal
of helping others with the disease.

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entry into the biosimilar market. We are
working to bring lower cost versions of
important biological therapies to the market
following an appropriate period of exclusivity
for the innovator product. We recognize
the important role that biosimilars can play
in the healthcare system by maintaining an
appropriate balance between continued
innovations and controlling costs. At the
same time, it is important to ensure that
the marketplace for biologics includes
effective patient safeguards that reflect the
scientific differences between biologics and
small molecules — without inhibiting the
appropriate utilization of biosimilar products.

In the United States, as the Affordable Care
Act became a reality, we welcomed the
opportunity that the changing landscape
brings for those who were previously unable
to access insurance. We are also working
to ensure that our patients continue to have
access to therapies they require so they
may effectively manage their disease.

DELIVERING TO MEET PATIENT DEMAND

The rapid growth of our business has
required us to increase the scale of our
Pharmaceutical Operations and Technology
(PO&T) organization. In 2013, we completed
the integration of the oral solid dose facility
in Research Triangle Park, North Carolina
(RTP), that we lease from Eisai. The addition
of this facility and other investments into
our manufacturing infrastructure enables
us to rapidly increase production of small
molecules and biologics while providing
flexibility and protection to our supply chain.

In addition, we received licenses from
both the EMA and the FDA to manufacture

TYSABRI at our biologics facility in Hillerød,
Denmark, and are now manufacturing and
supplying TYSABRI for patients in the EU
from that facility. We are also able to use our
manufacturing and technical development
capabilities there to support our biosimilar
development efforts with Samsung Bioepis.

We expect to substantially increase our
production capabilities by focusing on
innovation that allows us to scale in advance
of new pipeline products that, if successful,
have the potential to create substantial
future demand. We have done a great job
leveraging current manufacturing platforms,
but we now need to focus on new platforms
and drug substance technologies that
increase throughput without increasing
our footprint — leveraging new systems to
enhance our processes of effectively getting
an increased number of products to our
patients around the globe.

OUR RESPONSIBILITY AS A GLOBAL CITIZEN

Our commitment to corporate citizenship
and environmental sustainability reflects the
best interests of all of our stakeholders
and the communities and environments
in which we operate — and we have directly
incorporated this commitment into our
day-to-day business activities as a cultural
imperative across the organization. Moreover,
our focus on STEM (Science, Technology,
Engineering, Math) education and the reach
of our Biogen Idec Foundation has expanded
globally as we look to create a network of
initiatives that benefit those with an interest
in science through programs who reach the
youngest learners all the way up to those
who are pursuing careers in the life sciences.

13 | BIOGENIDEC.COM/AR2013

ENVIRONMENTAL SUSTAINABILITY

Last year Biogen Idec earned a place on the
prestigious Dow Jones Sustainability World
Index, becoming the first and only U.S.-
based biotechnology company to make the
list. We also were named to the Dow Jones
Sustainability Index North America for the
fourth consecutive year, one of only three
biotech companies included.

Our commitment to corporate
citizenship and environmental
sustainability reflects the
best interests of all of
our stakeholders and the
communities and environments
in which we operate.

When the Carbon Disclosure Project
released the results of its Annual Investor
Survey, Biogen Idec was awarded the top
Carbon Disclosure Score for the biotech
sector and we were in the top 10 overall
in the broader healthcare category. Our
score improved significantly from the prior
year, which demonstrates both a high
degree of transparency regarding our
carbon footprint and our continued
focus on being a more environmentally
sustainable organization globally.

In January 2014 it was announced that Biogen
Idec is the second most sustainable company

in the world according to the Global 100
rankings, an annual corporate sustainability
assessment performed by the research firm
Corporate Knights.

COMMUNITY COMMITMENT/STEM EDUCATION

Philanthropy serves as the centerpiece of our
global corporate social responsibility efforts.
Through the Biogen Idec Foundation, we
operate as a focused philanthropic leader
on a global scale. Our efforts are designed
to be visible and impactful as we:

• Advance the goals of transforming science-

based education

• Enhance community-based science

programming

• Support institutions of higher education

• Provide assistance to community-based

organizations

• Offer humanitarian assistance

We accomplish these goals through our
global grants programs, by providing micro-
grants targeted to the communities in which
we operate, supporting STEM education
directly and through community funding,
and by matching employee contributions.

Restoring the scientific acumen of our
students and workforce is both an industry
and a global imperative. As government
funding for STEM education has been
constrained, we believe private industry
should step forward, and through our
foundation, Biogen Idec is doing just that.
Our programs provide access to learning
opportunities for students at all phases of
their education, from kindergarten through
post-doctoral studies, with programs that
are aligned with students’ learning needs

14 | BIOGENIDEC.COM/AR2013

and abilities at each phase of development.
We also provide programming for teachers
to ensure they are adequately equipped
to inspire and educate future scientists.

We also launched our international
grants program with the goal of building
a global philanthropic network focused
on ensuring quality and accessible science
education. Direct grants included support
for the Experimentarium’s mobile science
programming in Copenhagen, Denmark;
the United Kingdom Science Museum’s
International Women’s Day celebration
engaging early career female scientists;
and independent scientific research study
sessions for students from across Switzerland
through the Schweizer Jugend forscht (Swiss
Youth in Science) education series.

Other STEM grants included:

• A grant to Harvard Medical School to

sponsor a four-year pilot within the Biological
and Biomedical Sciences Program. This
pilot allows pre-doctoral students access
to transformative technologies and the
chance to pursue novel experiments. We
also provided funding to the Harvard Medical
School to support internships for advanced
high school students that will allow them to
spend the summer in Harvard research labs.

• A grant to Teach for America to fund the

recruitment, training and ongoing support
of STEM-focused corps members in both
Boston and eastern North Carolina.

• Ongoing micro-grants providing direct

support for teachers looking to enhance
science education in the classroom. Last
year the Biogen Idec Foundation awarded
80 grants to teachers and schools in
Massachusetts and North Carolina enabling
teachers to bring new, exciting hands-on
science experiences to their students and

helping to create excitement about STEM
topics within the classroom setting.

Last October we were proud to announce
that we have expanded our Biogen Idec
Community Lab, unveiling a second lab
at our facility in RTP. The Community Lab
is the longest running, corporate hands-on
science lab in the nation — where nearly
20,000 students in Greater Boston have
experienced laboratory science.

And for the third consecutive year, our
global colleagues participated in Biogen
Idec’s Care Deeply Volunteer Day, our largest
volunteer effort to date. This worldwide
project enables employees to participate
in meaningful community service projects
and has a beneficial impact in every location
where Biogen Idec operates around the
world. In 2013, over 1,900 employees took
part in more than 122 projects in 28 countries.

As a company, we are also making changes
in how we work and collaborate, moving to
open-space floor plans and making smart
investments in technology that are designed
to foster a more open, collaborative
environment. Our efforts were recognized
with a top-10 placement in the Boston
Globe “Top Places to Work,” “Best Places
to Work” in Canada, “Company of the Year”
in Denmark and “Facility of the Year” in RTP.

PEOPLE, PURPOSE, PROGRESS

Biogen Idec is in the business of understanding
patient needs and the biology of disease.
We are in the business of transforming the
lives of the patients we serve. Ultimately, our
success will be measured by the impact we
have on people’s lives — and the quality of life
associated with that change. In everything

15 | BIOGENIDEC.COM/AR2013

ROSEMARIE COLLOPY

SWIMMER, VOLUNTEER EXTRAORDINAIRE
AND MS ADVOCATE

“I MAY NOT BE ABLE TO CONTROL MY BODY EVERY DAY; HOWEVER, I CAN CONTROL MY MINDSET.
LIFE IS MEANT TO BE LIVED, AND I USE EVERY TRICK I CAN SO I CAN ENJOY EACH MOMENT.”

Rosemarie Collopy is a swimmer, volunteer
extraordinaire and MS Advocate. She has
also been living with multiple sclerosis for
22 years. Before her diagnosis, Rosemarie
had a career in dentistry, teaching dental
hygiene and working in a dental office. She
would ride her bicycle 30 miles to and from
work. Six months after her daughter was
born, she was diagnosed, and within five
years, she had to stop working.

“I had big hopes and dreams. I lived my life
full and had big expectations for my family.
But yet, my path turned out different. I was
walking and biking one day and in a scooter
the next. When I was diagnosed with MS,
I took all my frustration out of not being able

to ride my bicycle and became this crazy
volunteer at the MS bike events.”

Rosemarie tried many treatments, and
she had success. Soon, her MS was in
remission and she started to exercise again,
but she did not like to inject herself. She
would often ask friends and family to help
her. When she heard about the oral MS
therapy TECFIDERA, she went to her doctor
and asked if it was right for her. They agreed
she should make the switch.

“Today, I focus on what I call ‘the gifts’
MS brought me, like the chance to spend
more time with my daughter when she
was growing up.”

16 | BIOGENIDEC.COM/AR2013

we do, we are driven by a simple question:
Are we truly making a difference in the lives
of patients?

development opportunities that we believe
will strengthen our research capacities and
complement our novel pipeline.

Achieving this requires that we build the
best possible group of leaders and
colleagues in the life sciences industry and
that we support our colleagues with the
most robust and efficient organizational
capabilities. As we look toward the future,
what will set us apart will be our people,
enabled by our unique culture. By embodying
our principles of caring deeply and working
fearlessly in everything we do, we expect to
drive innovation. We are making investments
to build a culture that expects excellence,
with colleagues who are fully aligned in
purpose and leadership that is positioned to
guide us toward success well into the future.

As a growing company, these ideals provide
us a compass and a clear path forward.
We must — and we will — continue to
innovate, to remain focused on performance
and operational excellence and to care
deeply about those patients who rely
on our efforts every day.

We made tremendous progress this past
year — but even as we enter our 36th year
as a company, I believe Biogen Idec is just
starting to show its real promise. We believe
the opportunity presented by our R&D
strategy, and our concentration on neurology,
immunology, non-malignant hematology
and adjacent diseases, where patients have
limited or no therapeutic options today,
provides that path forward. We are making
prudent decisions in advancing compounds
to the clinic and we are seeking business

As a growing company, these
ideals provide us a compass
and a clear path forward. We
must — and we will — continue
to innovate, to remain focused
on performance and operational
excellence and to care deeply
about those patients who rely
on our efforts every day.

I am proud of our employees and their
focus on our purpose and mission to meet
the needs of people with these diseases,
doing so in a way that meets the best
interests of society, and acting as partners
in their communities. We remain aligned
around our future and our commitment
to patients — and we appreciate your
commitment to our company as we work to
meet our goal of becoming the world’s best
science-driven biotechnology company.

Sincerely,
George A. Scangos, Ph.D.
Chief Executive Officer

17 | BIOGENIDEC.COM/AR2013

D
E
V
O
R
P
P
A

G
N
L
F

18 | BIOGENIDEC.COM/AR2013

PRODUCT PIPELINE

APPROVED

TECFIDERA (DIMETHYL FUMARATE)
Multiple Sclerosis, Relapsing Forms

1
E
S
A
H
P

2
E
S
A
H
P

3
E
S
A
H
P

ALPROLIX [COAGULATION FACTOR IX (RECOMBINANT), FC FUSION PROTEIN]
Hemophilia B | Collaborator: Swedish Orphan Biovitrum

GAZYVA (OBINUTUZUMAB)
Chronic Lymphocytic Leukemia | Collaborator: Genentech (Roche Group)

AVONEX (INTERFERON BETA-1A)
Multiple Sclerosis, Relapsing Forms

TYSABRI (NATALIZUMAB)
Multiple Sclerosis, Relapsing Forms

TYSABRI (NATALIZUMAB)
Crohn’s Disease

RITUXAN (RITUXIMAB)
Non-Hodgkin’s Lymphoma; ANCA-Associated Vasculitis; Anti-TNF Refractory Rheumatoid Arthritis;
Chronic Lymphocytic Leukemia | Collaborator: Genentech (Roche Group)

FUMADERM (FUMARIC ACID ESTERS)
Psoriasis (Germany)

FAMPYRA (PROLONGED-RELEASE FAMPRIDINE TABLETS)
Multiple Sclerosis, Walking Ability | Collaborator: Acorda Therapeutics

FILING

PLEGRIDY (PEGINTERFERON BETA-1A)
Multiple Sclerosis, Relapsing Forms

ELOCTATE [ANTIHEMOPHILIC FACTOR, (RECOMBINANT FC FUSION PROTEIN)]
Hemophilia A | Collaborator: Swedish Orphan Biovitrum

D
E
V
O
R
P
P
A

G
N
L
F

1
E
S
A
H
P

2
E
S
A
H
P

3
E
S
A
H
P

19 | BIOGENIDEC.COM/AR2013

PHASE THREE

DACLIZUMAB HIGH YIELD PROCESS
Multiple Sclerosis, Relapsing Forms | Collaborator: AbbVie

GAZYVA (OBINUTUZUMAB)
Non-Hodgkin’s Lymphoma | Collaborator: Genentech (Roche Group)

TYSABRI (NATALIZUMAB)
Secondary-Progressive MS

PHASE TWO

SMNRX
Spinal Muscular Atrophy | Collaborator: Isis Pharmaceuticals

NEUBLASTIN
Neuropathic Pain

BAN2401
Alzheimer’s Disease | Collaborator: Eisai Co., Ltd.

ANTI-TWEAK
Lupus Nephritis

ANTI-LINGO
Multiple Sclerosis; Optic Neuritis

STX-100
Idiopathic Pulmonary Fibrosis

PHASE ONE

ANTI-CD40 LIGAND
Systemic Lupus Erythematosus | Collaborator: UCB, Inc.

BIIB037 (HUMAN ANTI-AMYLOID BETA MAB)
Alzheimer’s Disease

E2609
Alzheimer’s Disease | Collaborator: Eisai Co., Ltd.

BIIB 061
Multiple Sclerosis

20 | BIOGENIDEC.COM/AR2013

FINANCIALS

GAAP TO NON-GAAP RECONCILIATION

Condensed Consolidated Statements of Income – Operating Basis

(unaudited, $ in millions except per share amounts)

GAAP diluted EPS

Adjustment to net income attributable
to Biogen Idec Inc. (see below)

Non-GAAP diluted EPS

GAAP Net Income Attributable to
Biogen Idec Inc.

R&D — Severance and restructuring

R&D — Expenses paid by Cardiokine

SG&A — Severance and restructuring

2010 Restructuring initiatives

Amortization of intangible assets

Fair value adjustment of contingent
consideration associated with 2010 Panima
acquisition, 2011 purchase of Dompe’s
noncontrolling interest and the 2012
acquisition of Stromedix

Contingent consideration payments made
in 2010 associated with the 2007 Syntonix
acquisition and the 2010 IPR&D charge
related to the consolidation of Knopp

Weston exit costs

Net income attributable to noncontrolling
interests: consolidation of Knopp in 2010
and expenses paid by Cardiokine in
2009 and 2010

FY 09
3.35
$

0.77

4.12

10
3.94

1.21

5.15

11
5.04

0.86

5.90

12
5.76

0.77

6.53

13
7.81

1.15

8.96

970

$ 1,005

$ 1,234

$ 1,380

$ 1,862

–

290

–

209

–

245

–

(8)

(149)

–

207

–

194

–

331

(1)

–

Income tax effect primarily related
to reconciling items

Stock option expense

(97)

(116)

(62)

(53)

(93)

Non-GAAP Net Income Attributable
to Biogen Idec Inc.

1,195

$ 1,315

$ 1,446

1,567

$ 2,136

Numbers may not foot due to rounding

21 | BIOGENIDEC.COM/AR2013

FREE CASH FLOW RECONCILIATION

(unaudited, $ in millions)

Net cash ﬂows provided by
operating activities

FY 09
$ 1,075

10
$ 1,625

11
$ 1,728

12
$ 1,880

13
$ 2,345

Purchases of property, plant and equipment
(Capital Expenditures)

166

173

208

255

246

Free Cash Flow

909

$ 1,452

$ 1,520

$ 1,625

$ 2,099

NOTES: The non-GAAP net income attributable to Biogen Idec Inc. and non-GAAP diluted EPS presented are defined as
reported, or GAAP, values excluding (1) certain purchase accounting and merger-related adjustments, (2) stock option expense
(3) other select items and (4) their related tax effects. Free cash flow is defined as net cash flows provided by operating activities
less purchases of property, plant and equipment, as disclosed within our Form 10-K. We believe the disclosure of these non-
GAAP financial measures provides investors additional insight into the ongoing economics of our business and reflects how
we manage our business internally, set operational goals and form the basis of our management incentive programs. These
non-GAAP financial measures are not in accordance with GAAP and should not be viewed in isolation or as a substitute for
comparable reported, or GAAP financial measures. Numbers may not foot due to rounding. Additional reconciliations of our
non-GAAP financial measures can be found in the Investors section of www.biogenidec.com.

SAFE HARBOR: This annual report contains forward-looking statements, including statements about our goals, prospects
and strategies, regulatory filings and agency actions, product launch plans, anticipated data readouts from programs in our
clinical pipeline, and expectations relating to our research and collaboration efforts. These forward-looking statements may be
accompanied by such words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,”
“project,” “target,” “will” and other words and terms of similar meaning. You should not place undue reliance on these statements.
These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such
statements, including: our dependence on sales from our principal products; uncertainty of success in executing our commercial
launch of TECFIDERA; difficulties in obtaining or changes in the availability of reimbursement for our products; uncertainty of
success in commercializing and developing other products, including our ability to obtain product approvals in a timely manner
or at all for new or current products; uncertainty of sales relating to TYSABRI; the occurrence of adverse safety events with our
products; failure to compete effectively due to significant product competition in the markets for our products; adverse market and
economic conditions, which may cause continued pressure on product pricing or otherwise impact the extent of reimbursement
for our products or the timing of payments to us; problems with our manufacturing processes; dependence on collaborators and
other third parties for the development and commercialization of products; failure to comply with government regulation; the risks
of doing business internationally; failure to manage our growth and execute our growth initiatives; charges and other costs relating
to our properties; risks and uncertainties relating to the timing, outcome and impact of legal, administrative and other proceedings
and disputes; fluctuations in our effective tax rate; our ability to attract and retain qualified personnel; uncertainty and potential
liabilities relating to product liability and intellectual property claims; the market, interest and credit risks associated with our
portfolio of marketable securities; environmental risks; and the other risks and uncertainties that are described in the Risk Factors
section of our most recent annual or quarterly report and in other reports we have filed with the SEC. These statements are based
on our current beliefs and expectations and speak only as of April 1, 2014. We do not undertake any obligation to publicly update
any forward-looking statements.

NOTE REGARDING TRADEMARKS: AVONEX®, AVONEX PEN®, RITUXAN®, TECFIDERA®, TYSABRI® and MS ActiveSource®
are registered trademarks of Biogen Idec. ALPROLIXTM, ELOCTATETM, FUMADERMTM and PLEGRIDYTM are trademarks of Biogen
Idec. The following are trademarks of the respective companies listed: FAMPYRA® — Acorda Therapeutics, Inc. and GAZYVATM —
Genentech, Inc.

22 | BIOGENIDEC.COM/AR2013

MANAGEMENT TEAM

EXECUTIVE MANAGEMENT (PICTURED LEFT TO RIGHT):

John G. Cox
Executive Vice President,
Pharmaceutical Operations
and Technology

Susan H. Alexander
Executive Vice President,
Chief Legal Officer and
Corporate Secretary

Paul J. Clancy
Executive Vice President,
Finance and Chief Financial
Officer

Spyros Artavanis-
Tsakonas, Ph.D.
Senior Vice President and
Chief Scientific Officer

Stuart A. Kingsley
Executive Vice President,
Global Commercial
Operations

George A. Scangos, Ph.D.
Chief Executive Officer

Alfred W. Sandrock Jr.,
M.D., Ph.D.
Group Senior Vice President
and Chief Medical Officer

Kenneth DiPietro
Executive Vice President,
Human Resources

Douglas E. Williams, Ph.D.
Executive Vice President,
Research and Development

Steven H. Holtzman
Executive Vice President,
Corporate Development

CORPORATE INFORMATION

BOARD OF DIRECTORS

William D. Young
Chairman, Biogen Idec
and Venture Partner,
Clarus Ventures, LLC

Nancy L. Leaming
Retired Chief Executive
Officer and President,
Tufts Health Plan

George A. Scangos, Ph.D.
Chief Executive Officer,
Biogen Idec

Alexander J. Denner, Ph.D.
Founding Partner and Chief
Investment Officer, Sarissa
Capital Management, LP

Caroline D. Dorsa
Executive Vice President
and Chief Financial Officer,
Public Service Enterprise
Group Incorporated

Richard C. Mulligan, Ph.D.
Mallinckrodt Professor of
Genetics Emeritus, Harvard
Medical School and Founding
Partner, Sarissa Capital
Management, LP

Robert W. Pangia
Chief Executive Officer,
Ivy Sports Medicine, LLC

Stelios Papadopoulos,
Ph.D.
Chairman, Exelixis, Inc.

SHAREHOLDER INFORMATION

Corporate Headquarters
Biogen Idec Inc.
225 Binney Street
Cambridge, MA 02142
(617) 679-2000

SEC Form 10-K
A copy of Biogen Idec’s Annual
Report on Form 10-K filed with
the Securities and Exchange
Commission is available at
sec.gov and upon request to:

Investor Relations Department
Biogen Idec Inc.
225 Binney Street
Cambridge, MA 02142
(781) 464-2442

Transfer Agent
For shareholder questions
regarding lost stock certificates,
address changes and changes of
ownership or names in which the
shares are held, direct inquiries to:

Computershare Trust Company NA
250 Royall Street
Canton, MA 02021
(781) 575-2879
computershare.com

Independent Accountants
PricewaterhouseCoopers LLP
125 High Street
Boston, MA 02110

News Releases
As a service to our shareholders
and prospective investors, copies
of Biogen Idec news releases
issued in the last 12 months are
now available almost immediately
24 hours a day, seven days a week,
on the web at businesswire.com.
Biogen Idec’s news releases are
usually posted within one hour of
being issued and are available at
no cost at biogenidec.com.

Market Information
Our common stock trades on The
NASDAQ Global Select Market
under the symbol “BIIB.”

The following table shows the
high and low sales price for our
common stock as reported by the
NASDAQ Global Select Market
for each quarter in the years ended
December 31, 2013 and 2012.

Brian S. Posner
Private Investor and President,
Point Rider Group, LLC

Eric K. Rowinsky, M.D.
Head of R&D and
Chief Medical Officer,
Stemline Therapeutics, Inc.

The Honorable Lynn Schenk
Attorney and Former Chief
of Staff to the Governor of
California and former U.S.
Congresswoman

Stephen A. Sherwin, M.D.
Life Sciences Advisor and
Clinical Professor of Medicine,
University of California,
San Francisco

Common Stock Price

HIGH

LOW

$ 127.85

$ 111.44

$144.38

$124.23

$ 157.18

$137.88

$ 155.30

$134.00

2012

HIGH

LOW

$192.92

$ 139.72

$242.64

$ 191.80

$248.95

$203.55

$298.82

$ 221.07

2013

2 013 A N N U A L R E P O RT | B I O G E N I D E C. C O M / A R2 013