Idec Pharmaceuticals Corporation and Biogen, Inc. announced that they have completed their merger transaction, creating a new global biotechnology industry leader, with top products and capabilities in oncology and immunology.
Stockholders of both companies approved the merger and merger-related proposals at special meetings, 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 (Interferon beta-1a) and Rituxan (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 CEO. "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 (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 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 $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.