8
BioTech Sage Report, January 2000
52 Week Trading History
Biogen Inc.
Product Pipeline (abbreviated)
Product
Indication
Status
Avonex
Multiple Sclerosis
Marketed
5c8
Idiopathic Thrombocyopenic Purpura
Systemic Lupus Erythematosus
Other Autoimmune Diseases
Phase II
Phase II
Phase II
LFA3TIP
Moderate-to-Severe Psoriasis
Phase II
CVT-124
Congestive Heart Failure
Phase II
Gelsolin
Cystic Fibrosis
Phase II
OP-1
Chronic Renal Disease
Preclinical
sented positive data from a Phase II
clinical study at the Psoriasis: Gene to
Clinic Meeting for its drug Amevive
and also announced that it has begun
a pivotal Phase III clinical trial with
Amevive in patients with chronic
plaque psoriasis.
The data from the study showed
that Amevive was well tolerated with
a favorable safety profile and provided
significant therapeutic effect. No in-
crease in infection rate and results
showed that Amevive cleared psoria-
sis rapidly and to a significant degree.
Valuation
There are different opinions on the
earning potential and future earnings
on Biogen, but in our view, the long
term prospects of Biogen looks prom-
ising.
Wall Street has concerns that Bio-
gen will experience a deceleration in
Avonex's revenue. Avonex is used
for the treatment of multiple sclerosis
(MS). The market continues to view
revenue growth as the primary price
driver for Biogen. Even though Bio-
gen continues to have strong sales
performance of its Avonex. And de-
spite increased competition overseas,
the drug is holding its own in the less
penetrated European market. Biogen
also stands to benefit from incre-
mental royalties on increased sales of
Intron A for Hepatitis C. However,
there is a perception that a significant
slowing of EPS growth could occur in
after 2000, should Avonex sales
weaken and Biogen's foreign patents
on hepatitis B antigens and Intron A
begin to expire, reducing royalty in-
come. New products are not expected
from Biogen's pipeline before early
2002.
The financial performance of the
company is based on two pillars, one
Technology
Biogen's research is focused on
biological systems and processes
where its scientific expertise in mo-
lecular biology, cell biology, immu-
nology and protein chemistry can lead
to a greater understanding of disease
processes and, as a result, to the crea-
tion of new pharmaceuticals.
Status
On December 3
rd
, Biogen pre-
Overview
Biogen, Inc. ("Biogen") is a bio-
pharmaceutical company principally
engaged in the business of develop-
ing, manufacturing and marketing
drugs for human health care. The
company focuses its efforts on areas
where it has particular scientific
strengths: multiple sclerosis, kidney
diseases, inflammatory diseases, res-
piratory diseases, cardiovascular dis-
eases, developmental biology and
gene therapy.
