BioWorld
www.bioworld.com/articles/491510

BIOGEN REPORTS EIGHTFOLD EARNINGS INCREASE

July 16, 1993

Biogen Inc.'s net income for the second quarter of 1993increased eightfold over the same period in 1992. The companyon Thursday reported earnings of $5.6 million, or 17 cents pershare, compared to $665,000, or 2 cents per share, in thecomparable 1992 period.

The higher earnings came from significant increases in royaltyrevenues (total revenues for the second quarter were $37.9million, compared with $20.9 million in 1992), largely due tocontinuing strong sales by licensees of Intron A alphainterferon (Schering Plough Corp.) and hepatitis B vaccines(SmithKline Beecham; Merck & Co. is a sublicensee).

Biogen (NASDAQ:BGEN) of Cambridge, Mass., explained that thequarterly results also reflect a one-time charge of $4.3 millionfor certain obligations prior to 1993 as a result of the recentlyannounced patent settlement between Schering-Plough andGenentech. As per the terms of the settlement (see BioWorld,July 15), Schering will pay Genentech some $18.2 million infixed license fees through 1996.

According to James Vincent, Biogen's chief executive officer,"The financial impact of the Genentech-Schering licensingagreement is not expected to be significant to our company, asthe total future obligation to Genentech is capped by agreementat less than $11 million through 1996. Biogen and Schering-Plough have not yet reached agreement as to the allocation ofthat cost between our two companies."

Biogen's stock closed at $29.75 a share on Thursday, down 50cents. -- Jennifer Van Brunt

(c) 1997 American Health Consultants. All rights reserved.