TITLE OF PRESENTATION SECOND QUARTER 2014 FINANCIAL RESULTS & BUSINESS UPDATE

Transcription

1 TITLE OF PRESENTATION SECOND QUARTER 2014 FINANCIAL RESULTS & BUSINESS UPDATE JULY 23, 2014

2 Forward-Looking Statements This presentation contains forward-looking statements, including statements about 2014 financial guidance, anticipated regulatory filings and approvals, and anticipated data readouts. 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 execution of our commercialization of new products; failure to protect and enforce our data, intellectual property and other proprietary rights and the diminution of our ability to derive anticipated benefits from our products; difficulties in obtaining or changes in the availability of reimbursement for our products; uncertainty of success in developing other product candidates, including our ability to obtain product approvals in a timely manner or at all for new or current products; the occurrence of adverse safety events with our products; failure to compete effectively due to significant product competition in the markets for our products; dependence on collaborators and other third parties for the development and commercialization of products; problems with our manufacturing processes; failure to manage our growth and execute our growth initiatives; failure to comply with legal and regulatory requirements; the risks of doing business internationally; 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 the date of this presentation. We do not undertake any obligation to publicly update any forward-looking statements. Note regarding trademarks: ALPROLIX TM, AVONEX, AVONEX PEN,ELOCTATE TM,PLEGRIDY TM, RITUXAN, TECFIDERA and TYSABRI, as used in this presentation, are trademarks or registered trademarks of Biogen Idec or its subsidiaries. FAMPYRA is a registered trademark of Acorda Therapeutics, Inc. GAZYZA is a trademark of Genentech, Inc. 2 2

3 Q Earnings Call Agenda INTRODUCTION: CLAUDINE PROWSE, Ph.D., VP, Investor Relations OVERVIEW: GEORGE SCANGOS, Ph.D., Chief Executive Officer R&D UPDATE: DOUG WILLIAMS, Ph.D., EVP, Research & Development COMMERCIAL UPDATE: TONY KINGSLEY, EVP, Global Commercial Operations FINANCIAL PERFORMANCE: PAUL CLANCY, EVP, Chief Financial Officer 3

4 TITLE OF PRESENTATION OVERVIEW GEORGE SCANGOS, Ph.D., CHIEF EXECUTIVE OFFICER

5 Q Financial Performance +40% +48% 2,421 2,056 Non-GAAP Diluted EPS ($)* ,723 1,386 Q2-13 Q2-14 GAAP Diluted EPS ($)* 3.01 Q2-13 Q2-14 Q2-13 Q Total Revenues ($M) Product Revenues ($M) Q2-13 Q2-14 *A RECONCILIATION OF OUR GAAP TO NON-GAAP FINANCIAL RESULTS IS INCLUDED AT THE END OF THIS PRESENTATION 5

6 Q Highlights PRODUCT PERFORMANCE Strong financial performance driven by a growing patient base for our MS Franchise 40% growth in revenues and 52% growth in non-gaap diluted EPS year-over-year Includes impact from agreement with AIFA, Italy's pricing authority. We believe TECFIDERA is on track to become the leading MS product in the US Outside the US, demand for TECFIDERA has been broad; launch trajectories similar to experience in US AVONEX remains a first-line MS therapy of choice Demand for TYSABRI remained solid as physicians continue to choose this therapy for patients requiring higher efficacy treatment HEMOPHILIA ALPROLIX for hemophilia B launched in the US ELOCTATE for hemophilia A approved by the FDA and launched in the US in mid-july PIPELINE Positive CHMP opinion for PLEGRIDY in Europe Positive Phase 3 readout for Daclizumab HYP EXPANDING GLOBAL PRESENCE Strategic focus on Japan Marketing approval received for TYSABRI and ALPROLIX Marketing application filed for ELOCTATE 6

7 TITLE OF PRESENTATION R&D UPDATE DOUG WILLIAMS, Ph.D., EXECUTIVE VICE PRESIDENT, RESEARCH & DEVELOPMENT

8 Daclizumab HYP: Potential New Therapeutic Option for Relapsing MS Phase 3 DECIDE active comparator study (1x Monthly Sub-Q Daclizumab HYP compared to weekly intramuscular IFN β-1a) 45% reduction in annualized relapse rate (p<0.0001) Monoclonal antibody targeting alpha subunit of IL-2 receptor 54% reduction in number of new or newly enlarging T2-hyperintense lesions (p<0.0001) Safety profile generally consistent with previous studies. Adverse events included infections, cutaneous events and hepatic events Actively preparing for EU and US regulatory filings Full results to be presented at ECTRIMS * Daclizumab HYP is being developed in collaboration with AbbVie Pharmaceuticals. Program is currently in development and not approved.

9 Deep Pipeline Late-Stage Early-Stage ALPROLIX* ELOCTATE* PLEGRIDY DACLIZUMAB HYP* TYSABRI GAZYVA* GAZYVA* Anti-LINGO Anti-TWEAK BAN2401* Neublastin STX-100 TYSABRI ISIS-SMN Rx * E2609* BIIB037* BIIB061 ISIS-DMPK Rx * Anti-BDCA2 Hemophilia B Hemophilia A PHASE I PHASE II PHASE III FILED Multiple Sclerosis Multiple Sclerosis Secondary Progressive Multiple Sclerosis Diffuse Large B-Cell Lymphoma Indolent Non-Hodgkin s Lymphoma (Refractory & Frontline) Optic Neuritis; Multiple Sclerosis Lupus Nephritis Alzheimer's Disease Neuropathic Pain Idiopathic Pulmonary Fibrosis Acute Ischemic Stroke Spinal Muscular Atrophy Alzheimer s Disease Alzheimer's Disease Multiple Sclerosis Myotonic Dystrophy Systematic Lupus Erthematosus FDA APPROVED FDA APPROVED FDA & EU FILED POSITIVE TOP LINE RESULTS 9 * Collaboration program

10 Anti-LINGO-1: Phase 2 in Acute Optic Neuritis and Multiple Sclerosis Lead Indication Multiple Sclerosis Presumed Mechanism of Action Fully human, IgG anti LINGO mab Inhibits Lingo 1, involved in oligodendrocyte differentiation and myelination Clinical Study Overview: AON Clinical Study Overview: MS Placebo controlled (N=80) with 100mg/kg dosed IV Q4 weekly for 20 weeks Primary endpoint: Change in optic nerve conduction velocity (NCV) Also evaluating imaging measurement of retinal nerve fiber thickness, and visual function as measured by low contrast letter acuity and visual quality of life Subjects with relapsing forms of MS (n=396) dosed concurrently with Avonex. 3mg/kg, 10mg/kg, 30mg/kg, 100mg/kg dosed Q4 weekly via IV. Primary endpoint: Percentage of subjects experiencing confirmed improvement of neurophysical and/or cognitive function and/or disability over 72 weeks Pepinsky B. et al; Journal of Pharmacology and Experimental Therapeutics, July Note: Program is currently in development and not approved.

11 TITLE OF PRESENTATION COMMERCIAL UPDATE TONY KINGSLEY, EXECUTIVE VICE PRESIDENT, GLOBAL COMMERCIAL OPERATIONS

12 Global MS Franchise Performance MS Franchise Sales ($M) +48% 2,030 1,727 1, ,370 1, Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 FAMPYRA AVONEX TYSABRI TECFIDERA * *Note: TYSABRI sales outside the U.S. included $54 million of previously deferred revenue from February 2013 through March 31, 2014, which was recognized during the quarter following an agreement with AIFA Beginning in the second quarter of 2014, we recorded TYSABRI revenues in Italy at the full reimbursed price which increased TYSABRI revenues by approximately $14 million versus prior trend Numbers may not foot due to rounding 12 12

13 Strong TECFIDERA Launch TECFIDERA Revenue ($M) Q Highlights Revenue vs. Q Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 WW + 38% US + 27% ROW + 151% TECFIDERA s broad use continues We believe Tecfidera is on track to becoming the leading MS product in the US US retention rates in-line with expectations Ex-US, Germany was the primary revenue driver in Q2 Launched with full reimbursement in Australia, Scotland, Germany, Norway, Sweden and in most Canadian provinces US ROW Note: Numbers may not foot due to rounding

14 Global AVONEX Performance AVONEX Revenues ($M) Q Highlights Revenue vs. Q & Q WW +2% and 0% US +5% and +4% ROW -3% and -6% Units vs. Q & Q WW -3% and -7% US 0% and -11% ROW -4% and -5% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 US ROW AVONEX gained global market share among interferons in Q If approved, PLEGRIDY has potential to become the interferon of choice based on combination of strong efficacy, favorable safety profile, and sub-q administration every two weeks PLEGRIDY approvals in US & EU anticipated in H Note: Numbers may not foot due to rounding

15 Global TYSABRI Performance TYSABRI Revenue ($M) Q Highlights Revenue vs. Q & Q WW +21% and +38% US +7% and +15% ROW +37% and +68% Units vs. Q & Q WW +4% and +4% US +11% and +4% ROW -1% and +3% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 US ROW Demand solid, and patient retention rates stabilizing to pre-tecfidera levels TYSABRI sales outside the U.S. included $54 million of previously deferred revenue from February 2013 through March 31, 2014, which was recognized during the quarter following an agreement with AIFA Beginning in the second quarter of 2014, we recorded TYSABRI revenues in Italy at the full reimbursed price which increased TYSABRI revenues by approximately $14 million versus prior trend The Company continues to be in discussions with AIFA to resolve its dispute for the periods February 2009 through January Note: Numbers may not foot due to rounding

16 ALPROLIX Launch Update $10M Revenue in Q Solid start since commercial launch in May As of the end of the quarter, approximately 1/3 of Hemophilia Treatment Centers have prescribed ALPROLIX Distribution and access highlights: Reimbursement favorable Contracting with specialty pharmacies is in place Supply chain is finalized Financial and patient support programs are running smoothly Ex-US approvals received in Canada, Australia, and Japan 16 16

17 ELOCTATE Update US Commercial launch last week, leveraging infrastructure from ALPROLIX Competitive label obtained Focused on educating physicians, payers, and advocacy groups Expediting access to patients Ex-US, approval received in Australia 17

18 TITLE OF PRESENTATION FINANCIAL PERFORMANCE PAUL CLANCY, EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER

19 Q GAAP to Non-GAAP Reconciliation Q YTD GAAP Diluted EPS $3.01 $5.03 GAAP Net Income Attributable to Biogen Idec Inc. ($M) $714.5 $1,194.5 Amortization of Intangibles Contingent Consideration Stock Option Expense Donation to Biogen Idec Foundation Tax Impact (40.1) (77.1) Total Adjustments Non-GAAP Net Income Attributable to Biogen Idec Inc. $829.1 $1,415.9 Non-GAAP Diluted EPS $3.49 $5.96 Numbers may not foot due to rounding 19

20 Q Financial Results Summary: MS Revenues $ in Millions Q Q Q % Q/Q % Y/Y AVONEX US $479 $476 $498 5% 4% AVONEX ROW $295 $285 $276 (3%) (6%) Total AVONEX Sales 1 $774 $761 $774 2% 0% TECFIDERA US $190 $460 $585 27% NMF TECFIDERA ROW $2 $46 $ % NMF Total TECFIDERA Sales $192 $506 $700 38% NMF TYSABRI US $218 $234 $250 7% 15% TYSABRI ROW $169 $207 $284 37% 68% Total TYSABRI Sales 1 $387 $441 $533 21% 38% FAMPYRA $17 $19 $22 18% 33% Total MS Sales $1,370 $1,727 $2,030 18% 48% Note: Numbers may not foot due to rounding. Percent changes represented as favorable & (unfavorable). 1. Net of Hedge 20

21 Q Financial Results Summary: Other Revenues $ in Millions Q Q Q % Q/Q % Y/Y ALPROLIX US $10 NMF NMF ALPROLIX ROW NMF NMF Total ALPROLIX Sales $10 NMF NMF FUMADERM Sales $16 $16 $16 3% 1% Total Product Sales $1,386 $1,743 $2,056 18% 48% RITUXAN/GAZYVA US Profit Share 1 $271 $275 $285 4% 5% RITUXAN ROW Royalty $18 $22 $18 (19%) (2%) Unconsolidated Joint Business Revenue (RITUXAN & GAZYVA) $289 $297 $303 2% 5% Corporate Partner Revenues $11 $52 $22 (59%) 102% Royalties $38 $38 $40 7% 6% Total Revenue $1,723 $2,130 $2,421 14% 40% Note: Numbers may not foot due to rounding. Percent changes represented as favorable & (unfavorable). 1. US Profit Share = US Profit Share + Expense Reimbursement 21

22 RITUXAN & GAZYVA Performance RITUXAN & GAZYVA Results ($M) Q Highlights Revenue vs. Q and Q US Net Sales +10% and +2% US Profit Share 1 +5% and +4% ROW Royalty -2% and -19% BIIB Revenue +5% and +2% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Ongoing Ph. 3 trials for Gazyva in DLBCL and inhl ROW Royalty BIIB US Profit Share BIIB Revenue US Net Sales 1 22 Note: In collaboration with Roche and Genentech. Numbers may not foot due to rounding. 1. BIIB US Profit Share = US Profit Share + Expense Reimbursement 2. In July 2013, the Department of Health and Human Services issued its final rule, Exclusion of Orphan Drugs for Certain Covered Entities Under 340B Program. As a result, Genentech released $95M in reserves which only impacted US Net Sales. This issuance did not impact the amount we recorded as revenues from unconsolidated joint business in our consolidated statements of income because we had been increasing our share of co-promotion profits in the U.S. to reflect our interpretation of the proposed 340B rule. Note for Q4 13, Q1 14, and Q2 14: Upon the first marketing approval of GAZYVA by the FDA in Q we began recognizing all activity, including sales and marketing and research and development expenses, related to the GAZYVA program in unconsolidated joint business within our consolidated statement of income. Prior to its first regulatory approval, we recognized our share of GAZYVA development and commercialization expenses as R&D and SG&A expense within our consolidated statements of income as we had no assurance that the program would generate a commercial product.

23 Q Financial Results Summary $ in Millions Q Q Q % Q/Q % Y/Y Cost of Sales 1 $231 $279 $292 (5%) (27%) % of Total Revenues 13% 13% 12% Non-GAAP R&D Expenses 2 $327 $527 $446 15% (37%) % of Total Revenues 19% 25% 18% Non-GAAP SG&A Expenses 3 $430 $509 $540 (6%) (26%) % of Total Revenues 25% 24% 22% Amortization of Acquired Intangibles 4 $3 $3 $4 (11%) (37%) Gain on Sale of Rights (BENLYSTA) $5 $4 $4 1% (27%) Note: Numbers may not foot due to rounding. Percent changes represented as favorable & (unfavorable). 1. For all periods there were no adjustments between GAAP and non-gaap cost of sales. 2. For Q2 13 GAAP R&D expense was $328 million and 19% of Total Revenues, non-gaap R&D expense excludes $1 million in stock option expense. For Q1 14 GAAP R&D expense was $529 million and 25% of Total Revenues, non-gaap R&D expense excludes $2 million in stock option expense. For Q2 14 GAAP R&D expense was $447 million and 18% of Total Revenues, non-gaap R&D expense excludes $1 million in stock option expense. 3. For Q2'13 GAAP SG&A expense was $431 million and 25% of Total Revenues, non-gaap SG&A expense excludes $1 million in stock option expense. For Q1 14 GAAP SG&A expense was $512 million and 24% of Total Revenues, non-gaap SG&A expense excludes $3 million in stock option expense. For Q2 14 GAAP SG&A expense was $577 million and 24% of Total Revenues, non-gaap SG&A expense excludes $1 million in stock option expense and $35M donation to Biogen Idec Foundation. 4. For Q2 13 GAAP Amortization was $82M, non-gaap Amortization excludes $80M of amortization related to acquired intangible assets. For Q1 14 GAAP Amortization was $143M, non-gaap Amortization excludes $140M of amortization related to acquired intangible assets. For Q2 14 GAAP Amortization was $117M, non-gaap Amortization excludes $113M of amortization related to acquired intangible assets. 23

24 Q Financial Results Summary $ in Millions except EPS Shares in millions Q Q Q % Q/Q % Y/Y Other income (expense), net 1 $(10) ($6) $5 NMF NMF Non-GAAP Tax Rate 2 24% 27% 27% Equity in Loss of Investee, net of tax 3 $2 $8 $2 75% 16% Net Income (loss) Attributable to Non Controlling Interest $0 $0 $9 NMF NMF Non-GAAP Net Income attributable to Biogen Idec 4 $549 $587 $829 41% 51% Weighted average diluted shares used in calculating diluted EPS % 1% Non-GAAP EPS 4 $2.30 $2.47 $ % 52% Note: Numbers may not foot due to rounding. Percent changes represented as favorable & (unfavorable). 1. For all periods other income (expense), net there were no adjustments between GAAP and non-gaap. 2. For Q2'13 GAAP tax rate was 24%. For Q1'14 GAAP tax rate was 27%. For Q2 14 GAAP tax rate was 27%. The difference between the GAAP and non-gaap tax rate for all periods is a result of the cumulative effects of the reconciliation that can be found at the end of this presentation and the footnotes to the prior slide of this presentation. 3. Represents our share of the results of operations related to our investment in Samsung Bioepis. 4. GAAP diluted EPS were $2.06, $2.02, and $3.01 in Q2 13, Q1'14, and Q2 14, respectively. GAAP net income attributable to Biogen Idec Inc. were $491 million, $480 million and $715 million in Q2 13, Q1'14, and Q2 14, respectively. Please refer to the end of this presentation for the most directly comparable GAAP net income attributable to Biogen Idec Inc. and diluted GAAP EPS, with a reconciliation to the non-gaap net income attributable to Biogen Idec Inc. and diluted non-gaap EPS. 24

25 2014 Full Year Financial Guidance Update prior guidance owing primarily to the growth of Meaningful increase from prior guidance owing primarily to the growth of TECFIDERA in the U.S. and the E.U., the strength of our other MS therapies, and clarity on the AIFA pricing matter Expense ratios apply to both GAAP and Non-GAAP 2014 Full Year Guidance. Revenue Growth R&D Expense (as a % of revenues) SG&A Expense (as a % of revenues) GAAP EPS Non-GAAP EPS Prior FY 2014 Guidance Approximately 26 to 28% Updated FY 2014 Guidance Approximately 38 to 41% 20 to 22% 20 to 21% 22 to 23% 22 to 23% Expected between $9.85 and $9.95 Expected between $11.35 and $11.45 Expected between $11.26 and $11.46 Expected between $12.90 and $13.10 Capital expenditures still expected at approximately $300 million A RECONCILIATION OF OUR GAAP TO NON-GAAP FINANCIAL RESULTS IS INCLUDED AT THE END OF THIS PRESENTATION

26 Increased 2014 Full Year Financial Guidance Prior FY 2014 Guidance GAAP EPS Expected between $9.85 & $9.95 Non GAAP EPS Expected between $11.35 & $11.45 A. AIFA Resolution 1 ~$0.25 ~$0.29 B. Core Business Impact 2 ~$1.21 ~$1.31 Updated FY 2014 Guidance Expected between $11.26 & $11.46 Expected between $12.90 & $13.10 Note: Numbers may not foot due to rounding. 1. In Q2-14, Biogen Idec recognized deferred revenues related to the period February 2013 through March 31, 2014 of approximately $54 million, offset by royalties due to third parties under existing agreements of approximately $14 million for a net gross margin contribution of approximately $40 million. Beginning in the second quarter of 2014, sales of TYSABRI in Italy were recorded at the full reimbursed price. The Company continues to be in discussions with AIFA to resolve its dispute for the periods February 2009 through January 2013, and deferred revenue for this period is not included in updated full year guidance. Revenue and gross margin associated with the AIFA resolution was not included in our most recent 2014 full year financial guidance issued in connection with our first quarter 2014 earnings release on April 23, Represents a meaningful increase from prior guidance owing to a number of factors including strength across our suite of MS therapies and strong TECFIDERA uptake in Germany which we believe will translate across other EU markets. Also includes greater than $150 million for the balance of the year for business development opportunities A RECONCILIATION OF OUR GAAP TO NON-GAAP RESULTS IS INCLUDED AT THE END OF THIS PRESENTATION

27 TITLE OF PRESENTATION BIOGEN IDEC GEORGE SCANGOS, Ph.D., CHIEF EXECUTIVE OFFICER

28 Biogen Idec: Focused on Execution Expand our leadership position in MS Multiple potential new product launches Pipeline in a data-rich period Continuing to focus on innovation 28

29 TITLE BIOGEN OF IDEC PRESENTATION QUESTIONS & ANSWERS

30 TITLE BIOGEN OF IDEC PRESENTATION APPENDIX

31 Neurology Late Stage Programs Molecule PLEGRIDY TYSABRI DACLIZUMAB HYP OCRELIZUMAB* Trial Name ADVANCE ASCEND DECIDE OPERA I OPERA II ORATORIO Phase Phase III Phase IIIb Phase III Phase III Phase III Phase III Indication RMS SPMS RMS RMS RMS PPMS Administration SC Injection IV/Infusion SC Injection IV/Infusion IV/Infusion IV/Infusion Target Enrollment 1, , Design 1. Placebo mcg SC every 2 wks mcg SC every 4 wks 1. Placebo mcg IV every 4 wks Active comparator trial versus Ifn β 1-A Active comparator trial vs. Ifn β 1-A (Rebif) Active comparator trial vs. Ifn β 1-A (Rebif) Placebo comparator Primary Endpoint ARR at 1 year Proportion of subjects experiencing confirmed progression of disability as measured by a composite endpoint ARR at 2-3 years ARR at 96 Weeks ARR at 96 Weeks Time to sustained disability progression Status FDA & EMA Filed Data readout expected 2015 Data released June, 2014 Enrollment completed 1Q 2013 Enrollment completed 1Q 2013 Enrollment completed 1Q * Genentech has responsibility for, and is funding 100% of, the further development of ocrelizumab in multiple sclerosis and will be responsible for commercialization.

32 Hemophilia Late Stage Programs Molecule ALPROLIX ELOCTATE Trial Name B-LONG KIDS B-LONG A-LONG KIDS A-LONG Phase Phase III Phase III Phase III Phase III Indication Hemophilia B Hemophilia B Hemophilia A Hemophilia A Administration IV Infusion IV Infusion IV Infusion IV Infusion Target Enrollment 123 ~20 ~150 ~50 Design Weekly Prophylaxis Individualized Interval Prophylaxis On-demand Treatment Perioperative Management Prophylaxis Regimen Individualized Prophylaxis Weekly Prophylaxis On-demand Treatment Perioperative Management Prophylaxis Regimen Key Endpoints Inhibitor Incidence Annualized Bleeding Rate Response to Treatment Inhibitor Incidence Annualized Bleeding Rate Response to Treatment Inhibitor Incidence Annualized Bleeding Rate Response to Treatment Inhibitor Incidence Annualized Bleeding Rate Response to Treatment Status FDA Approved Data expected 1H 2015 FDA Approved Data Released April

33 Anti-CD20 Late Stage Programs Molecule GAZYVA Trial Name CLL11 GOYA GADOLIN GALLIUM Phase Phase III Phase III Phase III Phase III Indication Front-line Chronic Lymphocytic Leukemia Front-line Diffuse Large B- cell lymphoma (DLBCL) Rituxan-refractory indolent Non Hodgkin s Lymphoma (inhl) w/maintenance Front-line inhl w/maintenance Administration IV Infusion IV Infusion IV Infusion IV Infusion Target Enrollment 780 1, ,400 Design Arm A: Gazyva plus Chlorambucil Arm B: Rituxan plus Chlorambucil Arm C: Chlorambucil alone Arm A: Gazyva plus CHOP Arm B: Rituxan plus CHOP Arm A: Gazyva plus Bendamustine followed by Gazyva maintenance Arm B: Bendamustine Arm A: Gazyva plus chemotherapy followed by Gazyva maintenance Arm B: Rituxan plus chemotherapy followed by Rituxan maintenance Primary Endpoint Progression-free survival Progression-free survival Progression-free survival Progression-free survival Status FDA approved FPI Q Data readout expected 2015 FPI Q Data readout expected 2017 FPI Q Data readout expected Note: In collaboration with, and operationalized by, Roche.

34 Late Stage Pipeline Events PROGRAM PHASE INDICATION STATUS 1 Approved in the US Hemophilia B Pediatric trial KIDS B-LONG ongoing; PUP study enrolling 1 Approved in the US Hemophilia A Pediatric trial KIDS A-LONG complete; PUP study anticipated to start 2H 2014 Filed in US & EU Relapsing forms of MS Positive CHMP opinion; anticipate approvals in US and EU in 2H Daclizumab-HYP Phase III RRMS Positive data readout; regulatory filings expected 1H 2015 Phase III SPMS Data readout expected Multiple Phase III studies ongoing inhl, DLBCL 2015 data readout for DLBCL; 2017 data readouts for Rituxan-refractory and Frontline inhl Collaboration with Swedish Orphan Biovitrum 2. Collaboration with AbbVie 3. Collaboration with and operationalized by Roche

35 GAAP to Non-GAAP Reconciliation 35 GAAP earnings per share - Diluted $ 3.01 $ 2.06 $ 5.03 $ 3.85 Adjustments to net income attributable to Biogen Idec Inc. (as detailed below) Non-GAAP earnings per share - Diluted $ 3.49 $ 2.30 $ 5.96 $ 4.27 GAAP net income attributable to Biogen Idec Inc. $ $ $ 1,194.5 $ Adjustments: Amortization of acquired intangible assets (Gain) loss on fair value remeasurement of contingent consideration 4.0 (5.2) 3.2 (2.9) SG&A: Stock option expense R&D: Stock option expense Donation to Biogen Idec Foundation Income tax effect related to reconciling items (40.1) (18.0) (77.1) (29.7) Non-GAAP net income attributable to Biogen Idec Inc. $ $ $ 1,415.9 $ 1, Full Year Guidance: GAAP to Non-GAAP Adjustments TABLE 3 Biogen Idec Inc. and Subsidiaries GAAP to Non-GAAP Reconciliation: Net Income and Net Income Per Share (unaudited, in millions, except per share amounts) For the Three Months For the Six Months Ended June 30, Ended June 30, EARNINGS PER SHARE An itemized reconciliation between net income attributable to Biogen Idec Inc. on a GAAP basis and net income attributable to Biogen Idec Inc. on a non-gaap basis is as follows: An itemized reconciliation between projected EPS on a GAAP basis and on a non-gaap basis is as follows: $ Shares Diluted EPS Projected GAAP net income attributable to Biogen Idec Inc. 2, $ Adjustments: Amortization of acquired intangible assets 463 (Gain) loss on fair value remeasurement of contingent consideration 8 Stock option expense 13 Donation to Biogen Idec Foundation 35 Income tax effect related to reconciling items (131) Projected Non-GAAP net income attributable to Biogen Idec Inc. 3, $ Use of Non-GAAP Financial Measures We supplement our consolidated financial statements presented on a GAAP basis by providing additional measures which may be considered non-gaap financial measures under applicable SEC rules. We believe that the disclosure of these non-gaap financial measures provides additional insight into the ongoing economics of our business and reflects how we manage our business internally, set operational goals and forms the basis of our management incentive programs. These non-gaap financial measures are not in accordance with generally accepted accounting principles in the United States and should not be viewed in isolation or as a substitute for reported, or GAAP, net income attributable to Biogen Idec Inc. and diluted earnings per share. Our Non-GAAP net income attributable to Biogen Idec Inc. and Non-GAAP earnings per share - Diluted financial measures exclude the following items from GAAP net income attributable to Biogen Idec Inc. and diluted earnings per share: 1. Purchase accounting and merger-related adjustments. We exclude certain purchase accounting related items associated with the acquisition of businesses, assets and amounts in relation to the consolidation of variable interest entities for which we are the primary beneficiary. These adjustments include charges for inprocess research and development, the amortization of certain acquired intangible assets and fair value remeasurements of our contingent consideration obligations. The exclusion of these charges provides management and investors with a supplemental measure of performance which the Company believes better reflects the underlying economics of the business. 2. Stock option expense recorded in accordance with the accounting standard for share-based payments. We believe that excluding the impact of expensing stock options better reflects the recurring economic characteristics of our business. 3. Other items. We evaluate other items on an individual basis, and consider both the quantitative and qualitative aspects of the item, including (i) its size and nature, (ii) whether or not it relates to our ongoing business operations, and (iii) whether or not we expect it to occur as part of our normal business on a regular basis. We also include an adjustment to reflect the related tax effect of all reconciling items within our reconciliation of our GAAP to Non-GAAP net income attributable to Biogen Idec Inc. Numbers may not foot due to rounding. 35