Biogen IDEC Merger Essay Example

manufacturing facility. Biogen focuses primarily on research and development of medical products such as AVONEX and AMEVIVE. AVONEX is the leading medication prescribed to over 100,000 MS patients worldwide, making up 35% of those affected by MS globally. Even with competition in the US market, AVONEX remains the top prescribed treatment for MS globally. Its closest competitor sold only half as much in 2002. On the other hand, AMEVIVE is a fusion protein that treats various autoimmune disorders and offers prolonged disease remission and improved safety compared to current therapies according to researchers.
Twenty-four percent of patients treated with AMEVIVE achieved disease clearance post-treatment, without experiencing severe side effects commonly associated with other therapies. It is noteworthy that AMEVIVE does not exhibit a rebound effect, which differentiates it from other treatment options where the diseases often worsen after completion. The potential of AMEVIVE to significantly enhance patients' lives by providing substantial disease control has been highlighted in the Biogen Annual Report of 2000.

Another successful product developed by Biogen, ANTEGREN, is a humanized monoclonal antibody created in the 1990s by Elan Corporation scientists. This medication is utilized for treating Multiple Sclerosis and Crohn's disease. Currently, Biogen is collaborating with Elan Corporation to further advance ANTEGREN, which is currently in the third stage of development and awaiting approval for commercialization as mentioned in the Biogen Annual Report of 2002.

In addition to these core products, Biogen has made significant progress in developing various other medications. These include ADENTRI for Congestive Heart Failure (stage II development in 2002), LFA-1 for Psoriasis (also at stage II), Interferon Beta Gene Delivery for cancer symptoms (initial stage of development), and Lymphotoxin Beta Receptor

Inhibitor for Autoimmune Diseases (also at an initial stage).Biogen, a leading pharmaceutical company globally, is currently conducting pre-clinical studies for various treatments such as VLA-1mAb for Inflammation and Fibrosis, VLA-4 Inhibitor for Inflammatory Disease, and LTBR mAB for Solid Tumors (‘Biogen Annual Report’, 2002). The company has gained recognition in the market due to its groundbreaking cancer treatment therapies. AMEVIVE, one of Biogen's most successful products, has solidified its reputation within the industry. AVONEX, which has generated around $1 billion in sales per year since 2001, continues to be a trusted product among medical facilities. Additionally, AMEVIVE is proving to be crucial in treating patients with autoimmune diseases.

Despite these successes, AVONEX sales seemed stagnant in 2002. To increase revenue, some believe that Biogen will need to rely on new products. Nevertheless, the company remains financially strong and known for its innovative research in immunology and neurobiology. It also possesses global sales and marketing capabilities along with established biologics manufacturing facilities.

To boost AVONEX sales further, Biogen's strategy includes continued investment in the product. For instance, they made it the only Medicare-reimbursable therapy for multiple sclerosis in 2002. Furthermore, AVONEX received approval from the European Medicines Agency for use in high-risk multiple sclerosis patients.The development of ANTEGREN is ongoing, but the marketing efforts for AMEVIVE have already started to yield results as of 2002. According to the 'Biogen Annual Report' from that year, Biogen was optimistic about AMEVIVE's potential to capture 5% of the market and generate $500 million in revenue by the end of 2005. To enhance its focus, Biogen divided its research and development into different disease-specific sections. These included neurology with AVONEX and ANTEGREN,

dermatology with AMEVIVE and LFA-1, and rheumatology with AMEVIVE, ANTEGREN, and other related products. The company believed it had competitive advantages in these three areas and intended to further concentrate on them to strengthen its overall competitive position.

In terms of technology infrastructure, Biogen owns several manufacturing facilities mainly located in the United States. However, in 2002, the company established two new state-of-the-art facilities in North Carolina: a large-scale manufacturing plant valued at $173 million and a 150,000 square foot research lab and office building. The manufacturing plant has a bioreactor capacity of 120,000 liters and received recognition for excellence through the Project Excellence Award from Fluor Corporation.

Additionally, in 2002 Biogen introduced a cutting-edge installation that enables production across their network. This installation boasts one of the world's largest capacities for biologic manufacturing.