Biogen Idec's multiple sclerosis treatment portfolio could eventually include five products as a result of existing partnerships and recent acquisitions.

"If things really work out well, there's a possibility of having as many as five products available for patients with MS, and I think this would really revolutionize the therapeutic options and strategies to treat MS," Exec VP-Corporate Strategic Opportunities Burt Adelman said during Biogen's second quarter earnings call July 26.

Biogen currently markets the MS therapies Avonex (interferon beta-1a) and Tysabri (natalizumab), which just returned to commercial availability July 24 after being withdrawn from the market for nearly a year and a half due to reported cases of progressive multifocal leukoencephalopathy. (¹ Also see "Tysabri Re-Launches In U.S. Through Single Distributor" - Pink Sheet, 24 July, 2006.),

Biogen is co-developing daclizumab (Roche's Zenapax) for relapsing forms of MS with PDL BioPharma; trials are currently in Phase II. In addition, the company is working with Genentech investigating Rituxan (rituximab) as a treatment for relapse-remitting MS. That work also is in Phase II.

A potential fifth treatment could be the oral fumarate BG-12, which Biogen gained through its acquisition of Switzerland-based Fumapharm in late May. The companies first entered into a collaboration for BG-12 in October 2003.

Phase II study results released in late May showed that patients receiving 720 mg of BG-12 experienced a 69% reduction in the mean number of gadolinium-enhancing lesions versus placebo and a 48% reduction in newly enlarging T2-hyperintense lesions (² Also see "Biogen Idec Will Move MS Therapy Into Phase III After Fumapharm Buy" - Pink Sheet, 31 May, 2006.).

Biogen intends to initiate a Phase III trial of BG-12 in early 2007, though Adelman said the company is still working out details with regulators.

The availability of Tysabri is also expected to expand the MS market, Adelman stated.

"We do expect that Tysabri, with its powerful efficacy, will expand the market since it [will] meet the needs of thousands of patients who are not satisfied with current therapies," he said.

During the Q2 call, Biogen indicated that it is still looking to acquire additional products in other therapeutic areas. In September 2005, the company announced plans to spend $200 mil. in 2006 on business development and external research (³ Also see "Biogen Idec Business Development Plan Includes Small Molecules For Oncology" - Pink Sheet, 27 October, 2005.).

In the second quarter alone, Biogen acquired the oncology-focused Conforma Therapeutics in a $150 mil. deal in addition to Fumapharm (⁴ Also see "Biogen Idec Seeks Oncology Pipeline Boost Through Acquisition" - Pink Sheet, 3 May, 2006.).

"We do want to remind everyone that our designated $200 mil. for external growth in 2006 has only been partially tapped thus far," CFO Peter Kellogg said. "We view this external growth funding as a core part of our strategy and a core part of our business model going forward."

"We do expect to have activity in the second half," the exec added.

Adelman said that Biogen would earmark at least another $200 mil. for external investments in 2007, and expects to invest a similar level of resources in the years ahead.

Biogen reported second quarter total revenues of $660 mil., up 8.9% from the prior-year period, driven partly by Avonex sales, up 12.3% to $429.4 mil.

Nonetheless, because of acquisitions, Biogen recorded a loss of $170.6 mil. during the quarter, compared with net income of $35.4 mil. a year ago. The loss reflects $331 mil. in acquisition costs related to Conforma and Fumapharm.

- Jonathan Block

Biogen Idec Plans Multiple Sclerosis Portfolio Expansion

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