By Mary Welch

Biogen Inc, aglow in Avonex sales, which last year more than doubled 1998 sales, reported year-end revenues of $794.4 million, compared to a 1998 revenues of $557.6 million. In addition, the Cambridge, Mass.-based company reported fourth-quarter revenues of $225.3 million, compared to $168.4 million for the fourth quarter of 1998.

The company reported a net income for the quarter of $69.3 million, or 44 cents per share, compared to $41.9 million, or 27 cents per share, for the same 1998 period. For the year, Biogen¿s net income was $220.4 million, or $1.40 per share, compared with $138.7 million, or 90 cents per share, for 1998.

The revenue, net income and diluted earnings per share figures all represented new company records. The company ended the year with $654.5 million in cash. In addition, the quarterly earnings beat the Street¿s consensus quarterly estimate of 42 cents.

¿They came out and beat the Street but there are few surprises in the numbers,¿ said Peter Drake, vice president and senior biotechnology analyst with Prudential Vector Healthcare in New York. ¿Our view of Avonex is that it¿ll do $815 million this year and $940 million next year. I think those are low. Those are highly doable numbers.¿

Eric Schmidt said the figures were almost business as usual. ¿It was another good quarter,¿ said the vice president for SG Cowen Securities Corp. in New York. ¿What¿s that been ¿ 10 in a row? It¿s getting old hat.¿

Avonex (interferon beta-1a) is the world¿s leading multiple sclerosis drug, both in terms of number of patients and sales volume. Its market share is more than 2-to-1 over the other multiple sclerosis drugs on the market in the U.S. Approximately 83,000 patients are now taking Avonex worldwide, an increase of almost 50 percent over those who took it in 1998. Total Avonex sales for 1999 were $621 million vs. $395 million in 1998 ¿ an increase of 55 percent. International sales in 1999 totaled more than $170 million, representing an increase of more than 90 percent over the previous year.

US Bancorp Piper Jaffray, of Minneapolis, in a research report, predicted Avonex¿s sales would be $811 million for 2000 and $975 million for 2001.

¿We think Avonex will continue growing in 2000,¿ said Schmidt.

¿What I thought interesting was that the company said it would get to 100,000 patients this year instead of 2001,¿ Drake said. ¿It¿s not a surprising statement but it¿s nice to see them acknowledge it. There is growth out there.¿

It also appears that the company is prepared to take steps to remedy its one acknowledged deficiency ¿ its pipeline.

¿The pipeline is weak. That point is irrefutable,¿ Schmidt said. ¿I think it¿s a good sign that Biogen said it plans to spend about $300 million in research and development this year. That will be money well spent.¿

Drake noted the company said it intends to in-license two drugs in clinical development. ¿That¿s quite significant,¿ he said. ¿The company has not exactly distinguished itself in developing products and pegging a number like that is pretty aggressive. It means they¿ll be out there competing with other companies to get good products and that they¿ll have to open their checkbooks. That¿ll bear fruit, both in relationship to the shareholders and the stock price.¿

Biogen does have one product in Phase III trials. Last month it started a pivotal study with Amevive in patients with chronic plaque psoriasis. The company said Amevive (recombinantly engineered LFA-3/OgG1 human fusion protein) possibly could be launched in 2002. (See BioWorld Today, Dec. 6, 1999, p. 1.)

In October, Biogen halted the Phase II trials of Antova, a humanized anti-CD40 ligand antibody, as a result of thromboembolic events. Biogen had hoped Antova could be used for a number of indications, including Factor VIII inhibitor syndrome, islet cell transplantation, multiple sclerosis and lupus. (See BioWorld Today Oct. 25, 1999, p. 1.)

Biogen¿s stock (NASDAQ:BGEN) closed Friday at $78.687, up $1.375.