Biogen Reports Updated Fourth Quarter and Full Year 2002 Results for Berlex Settlement

Reported Full Year Earnings Per Share Now $1.31; Operating Earnings Per Share of $1.59

Update:

  • U.S Court of Appeals decision handed down January 31, 2003.
    • The January 2002 settlement between Biogen and Berlex Laboratories provides for $55 million final cash payment from Biogen to Berlex upon the Court’s decision.
    • Generally Accepted Accounting Principles (GAAP) requires adjustment to the financial statements for certain events occurring subsequent to the original earnings release and prior to the release of audited financial statements in the Form 10-K for the fiscal year ended December 31, 2002.
  • Reported fourth quarter 2002 earnings per share updated to $0.27; operating earnings per share of $0.43.

Biogen, Inc. (NASDAQ: BGEN) today reported a charge of $55 million to the fourth quarter of 2002 to reflect the final settlement of the Berlex litigation. As required by U.S. GAAP, the $55 million adjusts the earnings for the fourth quarter and full year 2002 results.

Net income for 2002 is now $199 million, or $1.31 per share, which included $0.28 per share of net non-operating or unusual charges. Excluding these charges, 2002 operating earnings were $242 million, or $1.59 operating earnings per share. See attached tables for a reconciliation of reported earnings (GAAP) to operating earnings (Non-GAAP).

The charge of $55 million is reflected in other income (expense), net in the fourth quarter of 2002 as settlement of litigation. Net income for the fourth quarter 2002 is now $41 million, or $0.27 per share, which included $0.16 per share of net non-operating or unusual charges. Excluding these charges, the fourth quarter 2002 operating earnings were $65 million, or $0.43 operating earnings per share compared to $0.48 operating earnings per share for the same period last year.

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Biogen is the world’s oldest independent biotechnology company and a leader in biologics research, development and manufacturing. A pioneer in leading edge research in immunology, neurobiology and oncology, Biogen brings novel therapies to improve patients’ lives around the world through its global marketing capabilities. For press releases and additional information about the company, please visit http://www.biogen.com.

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