Biogen (BIIB) 10-Q 21 Oct 09 2009 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 14, 2009	Jun. 30, 2009
Document And Company Information [Abstract]
Entity Registrant Name	Biogen Idec Inc.
Entity Central Index Key	0000875045
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			13005469098
Entity Common Stock, Shares Outstanding		289,198,517

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Revenues:
Product	$801,689	$758,260	$2,326,067	$2,107,816
Unconsolidated joint business	283,919	298,979	838,307	825,024
Other revenues	34,910	35,725	85,918	95,754
Total revenues	1,120,518	1,092,964	3,250,292	3,028,594
Costs and expenses:
Cost of sales, excluding amortization of acquired intangible assets	93,486	107,493	282,404	300,828
Research and development	304,055	268,800	999,986	779,291
Selling, general and administrative	226,755	232,824	669,415	694,342
Collaboration profit sharing	60,697	43,533	152,608	98,368
Amortization of acquired intangible assets	51,347	94,464	233,830	242,114
Acquired in-process research and development	0	0	0	25,000
Total costs and expenses	736,340	747,114	2,338,243	2,139,943
Income from operations	384,178	345,850	912,049	888,651
Other income (expense), net	9,360	(23,713)	30,886	(24,651)
Income before income tax expense	393,538	322,137	942,935	864,000
Income tax expense	113,936	114,337	271,869	282,320
Net income	279,602	207,800	671,066	581,680
Net income attributable to noncontrolling interest, net of tax	1,939	1,012	6,571	5,167
Net income attributable to Biogen Idec Inc.	$277,663	$206,788	$664,495	$576,513
Basic earnings per share attributable to Biogen Idec Inc.	0.96	0.71	2.3	1.97
Diluted earnings per share attributable to Biogen Idec Inc.	0.95	0.7	2.28	1.95
Weighted-average shares used in calculating:
Basic earnings per share attributable to Biogen Idec Inc.	288,917	291,408	288,416	292,613
Diluted earnings per share attributable to Biogen Idec Inc.	291,037	293,921	290,368	295,515

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$585,788	$622,385
Marketable securities	821,888	719,586
Collateral received for loaned securities	0	29,991
Accounts receivable, net	550,995	446,665
Due from unconsolidated joint business	193,279	206,925
Loaned securities	0	29,446
Inventory	278,686	263,602
Other current assets	141,623	139,400
Total current assets	2,572,259	2,458,000
Marketable securities	1,497,447	891,406
Property, plant and equipment, net	1,634,696	1,594,754
Intangible assets, net	1,927,115	2,161,058
Goodwill	1,138,621	1,138,621
Investments and other assets	256,299	235,152
Total assets	9,026,437	8,478,991
Current liabilities:
Collateral payable on loaned securities	0	29,991
Accounts payable	108,547	107,417
Taxes payable	59,961	223,260
Accrued expenses and other	537,408	534,887
Current portion of notes payable and line of credit	15,452	27,667
Total current liabilities	721,368	923,222
Notes payable and line of credit	1,085,844	1,085,431
Long-term deferred tax liability	289,654	356,017
Other long-term liabilities	331,761	280,369
Total liabilities	2,428,627	2,645,039
Equity:
Preferred stock, par value $0.001 per share	0	0
Common stock, par value $0.0005 per share	149	149
Additional paid-in capital	6,184,315	6,073,957
Accumulated other comprehensive income (loss)	37,114	(11,106)
Retained earnings	781,321	270,180
Treasury stock, at cost	(438,710)	(527,097)
Total Biogen Idec Inc. shareholders' equity	6,564,189	5,806,083
Noncontrolling interest	33,621	27,869
Total equity	6,597,810	5,833,952
Total liabilities and equity	$9,026,437	$8,478,991

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)
	Sep. 30, 2009	Dec. 31, 2008
Preferred stock, par value	0.001	0.001
Common stock, par value	0.0005	0.0005

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net income	$671,066	$581,680
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization of property, plant and equipment and intangible assets	334,761	340,042
Acquired in-process research and development	0	25,000
Share-based compensation	119,902	104,339
Non-cash interest (income) expense and foreign exchange remeasurement loss (gain), net	(12,861)	(11,288)
Deferred income taxes	(72,580)	(57,591)
Realized loss (gain) on sale of marketable securities and strategic investments	(17,185)	3,774
Write-down of inventory to net realizable value	13,431	22,472
Impairment of marketable securities, investments and other assets	9,866	31,502
Excess tax benefit from stock options	(3,194)	(27,424)
Changes in operating assets and liabilities, net:
Accounts receivable	(96,215)	(95,337)
Due from unconsolidated joint business	13,646	(29,856)
Inventory	(25,195)	(34,376)
Other assets	8,555	24,898
Accrued expenses and other current liabilities	(40,565)	155,437
Other liabilities and taxes payable	(110,706)	121,928
Net cash flows provided by operating activities	792,726	1,155,200
Cash flows from investing activities:
Purchases of marketable securities	(3,001,156)	(1,801,056)
Proceeds from sales and maturities of marketable securities	2,334,093	2,135,065
Collateral received under securities leading	29,991	30,080
Acquisitions, net of cash acquired	0	(25,000)
Purchases of property, plant and equipment	(110,129)	(221,961)
Proceeds from the sale of property, plant and equipment	0	16
Purchases of other investments	(36,519)	(17,260)
Proceeds from the sale of a strategic equity investment	6,067	0
Net cash flows (used in) provided by investing activities	(777,653)	99,884
Cash flows from financing activities:
Purchase of treasury stock	(57,631)	(559,767)
Proceeds from issuance of stock for share-based compensation arrangements	33,236	167,032
Change in cash overdraft	7,497	18,052
Excess tax benefit from stock options	3,194	27,424
Proceeds from borrowings	0	986,980
Repayment of borrowings	(10,867)	(1,512,474)
Obligation under securities lending	(29,991)	(30,080)
Net cash flows used in financing activities	(54,562)	(902,833)
Net (decrease) increase in cash and cash equivalents	(39,489)	352,251
Effect of exchange rate changes on cash and cash equivalents	2,892	(1,212)
Cash and cash equivalents, beginning of the period	622,385	659,662
Cash and cash equivalents, end of the period	$585,788	$1,010,701

Business Overview

Business Overview
	9 Months Ended Sep. 30, 2009 USD / shares
Business Overview [Abstract]
Business Overview	1. Business Overview Overview Biogen Idec Inc. (Biogen Idec, we, us or the Company) is a global biotechnology company that creates new standards of care in therapeutic areas with high unmet medical needs. We currently have four marketed products: AVONEX, RITUXAN, TYSABRI, and FUMADERMtm. Our marketed products are used for the treatment of multiple sclerosis, or MS, non-Hodgkins lymphoma, or NHL, rheumatoid arthritis, or RA, Crohns disease and psoriasis. Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal recurring accruals, necessary for a fair statement of our financial position, results of operations and cash flows. The information included in this quarterly report on Form10-Q should be read in conjunction with our consolidated financial statements and the accompanying notes included in our annual report on Form10-K for the year ended December31, 2008. Our accounting policies are described in Notes to Consolidated Financial Statements in our 2008 annual report on Form10-K and updated, as necessary, in this Form10-Q. The year-end consolidated balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. The results of operations for the three and nine months ended September30, 2009 are not necessarily indicative of the operating results for the full year or for any other subsequent interim period. In June 2009, the Financial Accounting Standards Board, or FASB, issued the FASB Accounting Standards Codification, or Codification. Effective this quarter, the Codification became the single source for all authoritative generally accepted accounting principles, or GAAP, recognized by the FASB and is required to be applied to financial statements issued for interim and annual periods ending after September15, 2009. The Codification does not change GAAP and did not impact our financial position or results of operations. Effective January1, 2009, we adopted a newly issued accounting standard for noncontrolling interests. In accordance with the accounting standard, we changed the accounting and reporting for our minority interests (now called noncontrolling interest) in our consolidated financial statements. Upon adoption, certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications did not have a material impact on our previously reported financial position or results of operations. Refer to Note9, Equity, and Note13, Other Income (Expense), Net, of this Form10-Q for additional information on the adoption of this standard. Principles of Consolidation The consolidated financial statements reflect our financial statements, those of our wholly-owned subsidiaries and of our joint ventures in Italy and Switzerland, Biogen Domp SRL and Biogen Domp Switzerland Gmbh, respectively. We consolidate variable interest entities in which we are the primary beneficiary. For su

Inventory

Inventory
	9 Months Ended Sep. 30, 2009 USD / shares
Inventory [Abstract]
Inventory	2. Inventory Inventories are stated at the lower of cost or market with cost determined under the first-in, first-out, or FIFO, method. Included in inventory are raw materials used in the production of pre-clinical and clinical products, which are charged to research and development expense when consumed. The components of inventories are as follows: As of As of September30, December31, (In millions) 2009 2008 Raw materials $ 40.6 $ 29.8 Work in process 168.4 180.0 Finished goods 69.7 53.8 Total Inventory $ 278.7 $ 263.6

Revenue Recognition

Revenue Recognition
	9 Months Ended Sep. 30, 2009 USD / shares
Revenue Recognition [Abstract]
Revenue Recognition	3. Revenue Recognition Product Revenues We recognize revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the sellers price to the buyer is fixed or determinable; and collectibility is reasonably assured. Revenues from product sales are recognized when title and risk of loss have passed to the customer, which is typically upon delivery. However, under the terms of a development and marketing collaboration agreement with Elan Pharma International, Ltd., or Elan, an affiliate of Elan Corporation, plc, we manufacture TYSABRI and collaborate with Elan on the products marketing, commercial distribution and on-going development activities. Therefore, sales of TYSABRI in the United States are recognized on the sell-through model, that is, upon shipment of the product by Elan to its third party distributor rather than upon shipment to Elan. For sales of TYSABRI outside the United States, we are responsible for distributing TYSABRI to customers and are primarily responsible for all operating activities. Generally, revenue on sales of TYSABRI outside the United States is recognized at the time of product delivery to our customers and distributors, as all revenue recognition criteria have been met. Reserves Reserves for Discounts and Allowances Revenues are recorded net of applicable allowances for trade term discounts, wholesaler incentives, Medicaid rebates, Veterans Administration rebates, managed care rebates, product returns and other applicable allowances. Reserves established for these discounts and allowances are classified as reductions of accounts receivable (if the amount is payable to our customer) or a liability (if the amount is payable to a party other than our customer). Our product revenue reserves are based on estimates of the amounts earned or to be claimed on the related sales. These estimates take into consideration our historical experience, current contractual requirements, statutory requirements, specific known market events and trends and forecasted customer buying patterns. If actual results vary, we may need to adjust these estimates, which could have an effect on earnings in the period of the adjustment. An analysis of the amount of, and change in, reserves is as follows: Contractual (In millions) Discounts Adjustments Returns Total Balance, as of December31, 2008 $ 9.2 $ 48.1 $ 18.1 $ 75.4 Current provisions relating to sales in current period 54.9 140.2 14.0 209.1 Adjustments relating to prior periods 3.2 3.2 Payments/returns relating to sales in current period (42.2 ) (76.6 ) (0.5 ) (119.3 ) Payments/returns relating to sales in prior periods (8.7 ) (45.1 ) (12.3 ) (66.1 ) Balance, as of September30, 2009

Intangible Assets and Goodwill

Intangible Assets and Goodwill
	9 Months Ended Sep. 30, 2009 USD / shares
Intangible Assets and Goodwill [Abstract]
Intangible Assets and Goodwill	4. Intangible Assets and Goodwill Intangible assets and goodwill, net of accumulated amortization, impairment charges and adjustments, are as follows: As of September30, As of December31, 2009 2008 Estimated Accumulated Accumulated (In millions) Life Cost Amortization Net Cost Amortization Net Intangible assets: Out-licensed patents 12years $ 578.0 $ (288.6 ) $ 289.4 $ 578.0 $ (250.3 ) $ 327.7 Core/developed technology 15-23years 3,005.3 (1,434.0 ) 1,571.3 3,005.3 (1,241.0 ) 1,764.3 Trademarks and tradenames Indefinite 64.0 64.0 64.0 64.0 In-licensed patents 14years 3.0 (1.1 ) 1.9 3.0 (0.9 ) 2.1 Assembled workforce 4years 2.1 (1.6 ) 0.5 2.1 (1.2 ) 0.9 Distribution rights 2years 12.7 (12.7 ) 12.7 (10.6 ) 2.1 Total intangible assets $ 3,665.1 $ (1,738.0 ) $ 1,927.1 $ 3,665.1 $ (1,504.0 ) $ 2,161.1 Goodwill Indefinite $ 1,138.6 $ $ 1,138.6 $ 1,138.6 $ $ 1,138.6 Intangible Assets Effective January1, 2009, we implemented an amendment to the accounting and disclosure requirements related to intangible assets. This amendment provides guidance for determining the useful life of a recognized intangible asset and requires enhanced disclosures so that users of financial statements are able to assess the extent to which the expected future cash flows associated with the asset are affected by our intent and ability to renew or extend the arrangement. The adoption of this guidance did not impact our financial position or results of operations as this standard was required to be implemented prospectively; however, this standard may impact us in subsequent periods. Our intangible assets consist of patents, licenses, core/developed technology, trademarks, tradenames, assembled workforce, and distribution rights, the majority of which arose in connection with the merger of Biogen Inc. and Idec Pharmaceuticals Corporation, or the Merger. These intangible assets were recorded at fair value and are stated net of accumulated amortization and impairments. The useful lives of our assets are primarily based on the legal or contractual life of the underlying

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	5. Fair Value Measurements Effective January1, 2009, we adopted a newly issued accounting standard for fair value measurements of all nonfinancial assets and nonfinancial liabilities not recognized or disclosed at fair value in the financial statements on a recurring basis. The adoption of the accounting standard for these assets and liabilities did not have a material impact on our financial position or results of operations; however, this standard may impact us in subsequent periods and require additional disclosures. During the quarter ended June30, 2009, we implemented newly issued accounting standards which provide guidance for determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying circumstances that indicate that a transaction is not orderly. Specifically, the new standards provide additional guidelines for making fair value measurements more consistent with the principles presented and provide authoritative guidance in determining whether a market is active or inactive, and whether a transaction is distressed. This guidance is applicable to all assets and liabilities (i.e. financial and nonfinancial) and requires enhanced disclosures, including interim and annual disclosure of the input and valuation techniques (or changes in techniques) used to measure fair value and the defining of the major security types comprising debt and equity securities held based upon the nature and risk of the security. The adoption of the new standards did not impact our financial position or results of operations; however, adoption has enhanced disclosures for our investments in marketable debt securities and resulted in the reclassification of certain amounts included within our previously reported disclosures to conform to the presentation adopted in the current year. During the second quarter of 2009, we also implemented a newly issued accounting standard requiring disclosure about the fair value of financial instruments in interim as well as in annual financial statements. The adoption of this standard has resulted in the disclosure of the fair values attributable to our debt instruments within our interim report. Since this guidance addresses disclosure requirements, the adoption of this standard did not impact our financial position or results of operations. Summary of Assets and Liabilities Recorded at Fair Value The tables below present information about our assets and liabilities that are measured at fair value on a recurring basis as of September30, 2009 and December31, 2008 and indicate the fair value hierarchy of the valuation techniques we utilized to determine such fair value. In general, fair values determined by Level1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level2 inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level3 inputs utilize unobservable data points for the asset or liability. A majority of our financial assets and liabilities have been classifie

Financial Instruments

Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Financial Instruments [Abstract]
Financial Instruments	6. Financial Instruments Financial instruments that potentially subject us to concentrations of credit risk are accounts receivable and marketable securities. The majority of our accounts receivable are payable by wholesale distributors and large pharmaceutical companies and collateral is generally not required from these large customers. We monitor the financial performance and credit worthiness of our large customers so that we can properly assess and respond to changes in their credit profile. Our portfolio of marketable securities is subject to concentration limits set within our investment policy that help to mitigate our credit exposure. Marketable Securities, including Strategic Investments The following tables summarize our marketable securities and strategic investments (in millions): Gross Gross Fair Unrealized Unrealized Amortized As of September30, 2009 (In millions): Value Gains Losses Cost Available-for-sale Corporate debt securities Current $ 167.1 $ 1.5 $ $ 165.6 Non-current 279.1 6.7 (0.2 ) 272.6 Government securities Current 650.5 1.5 649.0 Non-current 988.4 6.8 (1.1 ) 982.7 Mortgage and other asset backed securities Current 4.3 0.1 4.2 Non-current 229.9 5.4 (0.1 ) 224.6 Total available-for-sale securities $ 2,319.3 $ 22.0 $ (1.4 ) $ 2,298.7 Other Investments Strategic investments, non-current $ 4.2 $ 0.9 $ (0.2 ) $ 3.5 Gross Gross Fair Unrealized Unrealized Amortized As of December31, 2008 (In millions): Value Gains Losses Cost Available-for-sale Corporate debt securities Current $ 128.2 $ 0.4 $ $ 127.8 Non-current 200.3 2.6 197.7 Government securities Current 582.8 1.5 581.3 Non-current 422.2 8.7 413.5 Mortgage and other asset backed securities Current 13.9 13.9 Non-current 293.0 3.3 (0.3 ) 290.0

Derivative Instruments

Derivative Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Derivative Instruments [Abstract]
Derivative Instruments	7. Derivative Instruments Forward Contracts and Interest Rate Swaps On January1, 2009, we adopted a newly issued accounting standard which requires additional disclosure about our objectives for using derivative instruments, the level of derivative activity we engage in, and the effect of derivative instruments and related hedged items on our financial position and performance. The adoption of this standard did not impact our financial position or results of operations. Our primary market exposure is to interest rates and foreign exchange rates. We use certain derivative instruments to help manage this exposure. We execute these instruments with financial institutions we judge to be creditworthy and the majority of the foreign currencies are denominated in currencies of major industrial countries. We do not hold or issue derivative instruments for trading or speculative purposes. We recognize all derivative instruments as either assets or liabilities at fair value in our consolidated balance sheets. We classify the cash flows from these instruments in the same category as the cash flows from the hedged items. Forward Contracts Due to the global nature of our operations, portions of our revenues are in currencies other than the U.S.dollar. The value of revenue measured in U.S.dollars is subject to changes in currency exchange rates. In order to mitigate these changes we use forward contracts to lock in exchange rates. We do not engage in currency speculation. All foreign currency forward contracts in effect as of September30, 2009 and December31, 2008 had durations of 1 to 12months. These contracts have been designated as cash flow hedges and accordingly, to the extent effective, any unrealized gains or losses on these foreign currency forward contracts are reported in accumulated other comprehensive income (loss). Realized gains and losses for the effective portion of such contracts are recognized in revenue when the sale of product in the currency being hedged is recognized. To the extent ineffective, hedge transaction gains and losses are reported in other income (expense), net at each reporting date. Foreign currency forward contracts that were entered into to hedge forecasted revenue were as follows: Notional Amount As of September 30, As of December31, Foreign Currency: (In millions) 2009 2008 Euro $ 399.0 $ 489.4 Canadian Dollar 36.7 34.1 Total $ 435.7 $ 523.5 The portion of the fair value of these contracts that was included in accumulated other comprehensive income (loss) within total equity reflected losses of $34.7million and $44.1million as of September30, 2009 and December31, 2008, respectively. We consider the impact of our and our counterparties credit risk on the fair value of the contracts as well as the ability of each party to execute its obligations under the contract. As of September30, 2009 and December31, 2008, respectively, credit risk did not materially change the fair value of our for

Property Plant and Equipment

Property Plant and Equipment
	9 Months Ended Sep. 30, 2009 USD / shares
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	8. Property, Plant and Equipment Property, plant and equipment are recorded at historical cost, net of accumulated depreciation. As of As of September30, December31, (In millions) 2009 2008 Accumulated depreciation $ 622.9 $ 537.0

Equity

Equity
	9 Months Ended Sep. 30, 2009 USD / shares
Equity [Abstract]
Equity	9. Equity The following tables reflect the reconciliation at the beginning and the end of the period of the carrying amount of equity attributable to the shareholders of Biogen Idec Inc., equity attributable to noncontrolling interests, and total equity: For the For the Three Months Ended September30, 2009 Three Months Ended September30, 2008 Biogen Idec Inc. Biogen Idec Inc. Shareholders Noncontrolling Total Shareholders Noncontrolling Total (In millions) Equity interest Equity Equity interest Equity Beginning Balance $ 6,212.5 $ 33.2 $ 6,245.7 $ 5,522.9 $ 26.2 $ 5,549.1 Comprehensive income: Net income 277.7 1.9 279.6 206.8 1.0 207.8 Unrealized gains(losses) on securities available for sale, net of tax of $0.3 and $(0.7) (0.5 ) (0.5 ) 1.3 1.3 Unrealized gains(losses) on foreign currency forward contracts, net of tax of $0.8 and $(7.6) (2.3 ) (2.3 ) 13.0 13.0 Unrealized gains(losses) on pension benefit obligation, net of tax of $(0.1) and $0.0 0.2 0.2 (0.2 ) (0.2 ) Translation adjustments 28.4 1.3 29.7 (101.8 ) (2.7 ) (104.5 ) Comprehensive income (loss) 303.5 3.2 306.7 119.1 (1.7 ) 117.4 Distribution to noncontrolling interest (2.8 ) (2.8 ) (1.4 ) (1.4 ) Capital contribution from noncontrolling interest 1.6 1.6 Repurchase of common stock for Treasury, at cost Issuance of common stock from conversion of subordinated notes payable Issuance of common stock under stock option and stock purchase plans 8.8 8.8 77.6 77.6 Issuance of common stock under stock award plans (2.0 ) (2.0 ) (1.0 ) (1.0 ) Compensation expense related to share-based payments 42.8 42.8 38.5 38.5 Tax benefit from share-based payments (1.4 ) (1.4 ) 11.4 11.4 Ending Balance $ 6,564.2 $ 33.6 $

Earnings per Share

Earnings per Share
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings per Share [Abstract]
Earnings per Share	10. Earnings per Share Basic and diluted earnings per share are calculated as follows: For the For the Three Months Ended Nine Months Ended September30, September30, (In millions) 2009 2008 2009 2008 Numerator: Net income attributable to Biogen Idec Inc. $ 277.7 $ 206.8 $ 664.5 $ 576.5 Adjustment for net income allocable to preferred stock (0.5 ) (0.4 ) (1.1 ) (1.0 ) Net income used in calculating basic and diluted earnings per share $ 277.2 $ 206.4 $ 663.4 $ 575.5 Denominator: Weighted average number of common shares outstanding 288.9 291.4 288.4 292.6 Effect of dilutive securities: Stock options and ESPP 0.6 1.1 0.7 1.6 Time-vested restricted stock units 1.5 1.4 1.3 1.2 Performance-vested restricted stock units Restricted stock awards 0.1 Dilutive potential common shares 2.1 2.5 2.0 2.9 Shares used in calculating diluted earnings per share 291.0 293.9 290.4 295.5 The following amounts were not included in the calculation of net income per diluted share because their effects were anti-dilutive or the performance criteria had not been met for the performance-vested restricted stock units: For the For the Three Months Ended Nine Months Ended September30, September30, (In millions) 2009 2008 2009 2008 Numerator: Net income allocable to preferred stock $ 0.5 $ 0.4 $ 1.1 $ 1.0 Denominator: Stock options 8.4 6.7 7.4 6.4 Time-vested restricted stock units 2.3 1.8 2.1 1.4 Performance-vested restricted stock units 0.2 0.1 Convertible preferred stock 0.5 0.5 0.5 0.5 Total 11.4 9.0 10.1 8.3 On January1, 2009, we adopted a newly issued accounting standard which addresses whether instruments granted in share-based payment transactions are participating securities prior to vesting, and therefore need to be i

Share Based Payments

Share Based Payments
	9 Months Ended Sep. 30, 2009 USD / shares
Share-Based Payments [Abstract]
Share-Based Payments	11. Share-Based Payments The following table summarizes share-based compensation expense included within our consolidated statements of income: For the Three For the Nine Months Ended Months Ended September30, September30, (In millions) 2009 2008 2009 2008 Research and development $ 15.6 $ 14.0 $ 46.0 $ 45.8 Selling, general and administrative 27.2 24.5 78.7 64.0 Subtotal 42.8 38.5 124.7 109.8 Capitalized share-based payment costs (1.7 ) (1.8 ) (4.8 ) (5.5 ) Share-based compensation expense included in total costs and expenses 41.1 36.7 119.9 104.3 Income tax effect (12.6 ) (11.4 ) (36.8 ) (32.2 ) Share-based compensation expense included in net income attributable to Biogen Idec, Inc. $ 28.5 $ 25.3 $ 83.1 $ 72.1 Our share-based compensation programs consist of share-based awards which include stock options, time-vested restricted stock units and performance-vested restricted stock units, as well as our employee stock purchase plan. The following table summarizes share-based compensation expense associated with each of these programs: For the Three For the Nine Months Ended Months Ended September30, September30, (In millions) 2009 2008 2009 2008 Stock options $ 5.5 $ 4.9 $ 16.6 $ 14.3 Time-vested restricted stock units 34.4 30.5 99.9 89.5 Performance-vested restricted stock units (0.3 ) 0.1 3.0 0.8 Restricted stock awards 0.6 Employee stock purchase plan 3.2 3.0 5.2 4.6 Subtotal $ 42.8 $ 38.5 $ 124.7 $ 109.8 Capitalized share-based payment costs (1.7 ) (1.8 ) (4.8 ) (5.5 ) Share-based compensation expense included in total costs and expenses $ 41.1 $ 36.7 $ 119.9 $ 104.3 Stock Options The fair values of our stock option grants are estimated as of the date of grant using a Black-Scholes option valuation model. The estimated fair values of the stock options, including the effect of estimated forfeitures, are then expensed over the options vesting periods. A summary of stock options granted during the three and nine mo

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	12. Income Taxes The following table provides a comparative summary of our effective tax rates and income tax expense for the three and nine months ended September30, 2009 and 2008, respectively: For the Three Months Ended September30, For the Nine Months Ended September30, (In millions, except percentages) 2009 2008 Change % 2009 2008 Change % Effective tax rate 29.0 % 35.5 % (18.3 )% 28.8 % 32.7 % (11.9 )% Income tax expense $ 113.9 $ 114.3 (0.3 )% $ 271.9 $ 282.3 (3.7 )% Our effective tax rate will fluctuate from period to period due to several factors inherent in the nature of our global operations and business transactions. The factors that most significantly impact our tax rate include the variability of the proportion of our taxable earnings in multiple jurisdictions, changes in tax laws and acquisition and licensing transactions. Our effective tax rate for the three and nine months ended September30, 2009 was favorably impacted by certain adjustments to our transfer pricing and other estimates made in conjunction with the filing of our income tax returns during the current quarter. These adjustments had a favorable impact of 1.9% and 0.8% on our tax rate for the three and nine months ended September30, 2009, respectively. In addition, our tax rate for the nine months ended September30, 2009, was also favorably impacted by changes in the tax laws of certain states in which we operate. These tax law changes required us to establish deferred tax assets for certain tax credits and adjust certain deferred tax liabilities and reserves for uncertain tax positions resulting in a favorable impact of 3.2% on our effective tax rate for the nine months ended September30, 2009. As these tax law changes became effective during the first quarter of 2009, these changes did not have an impact on our effective tax rate for the three months ended September30, 2009. The favorable impact of these items on our effective tax rate for the nine months ended September30, 2009 was offset by the impact of the collaboration and license agreement entered into with Acorda Therapeutics, Inc., or Acorda, on June30, 2009. As there is no income tax benefit associated with the $110.0million July1, 2009 upfront payment made to Acorda and other registrational costs of Fampridine-SR, these payments had a 2.4% and 2.3% unfavorable impact on our effective tax rate for the three and nine months ended September30, 2009, respectively. Refer to Note14, Collaborations, of this Form10-Q for additional information related to the Acorda transaction. In connection with the acquisition of Syntonix Pharmaceuticals, or Syntonix, in January 2007, we agreed to make additional future consideration payments contingent upon the achievement of certain milestone events. In accordance with the acquisition agreement, we expect to make a $40.0million milestone payment to the former shareholders of Syntonix in the fourth quarter of 2009. Thi

Other Income

Other Income (Expense), Net
	9 Months Ended Sep. 30, 2009 USD / shares
Other Income (Expense), Net [Abstract]
Other Income (Expense), Net	13. Other Income (Expense), Net Total other income (expense), net consists of the following: For the For the Three Months Nine Months Ended Ended September30, September30, (In millions) 2009 2008 2009 2008 Interest income $ 10.9 $ 16.8 $ 37.8 $ 55.0 Interest expense (8.5 ) (8.1 ) (27.6 ) (37.6 ) Impairments of investments (0.5 ) (17.4 ) (10.1 ) (32.0 ) Net gains (losses) on foreign currency transactions 3.2 (1.8 ) 10.6 (2.8 ) Net realized gains (losses) on marketable securities 1.8 (9.7 ) 13.7 (3.8 ) Other, net 2.5 (3.5 ) 6.5 (3.5 ) Total other income (expense), net $ 9.4 $ (23.7 ) $ 30.9 $ (24.7 ) Impairment on Investments In April 2009, we implemented newly issued accounting standards which provided guidance for recognition and presentation of other-than-temporary impairments. The adoption of the guidance did not have a material impact on our financial position or results of operations; however, this standard amended the other-than-temporary impairment model for debt securities. The impairment model for equity securities was not affected. Refer to Note6, Financial Instruments, of this Form10-Q for additional information on the adoption of this guidance. During the three and nine months ended September30, 2009, we recognized impairment losses of $0.5million and $6.5million, respectively, on our strategic investments and non-marketable securities. In addition, during the three and nine months ended September30, 2008, we recognized $3.3million and $12.7million, respectively, in charges for the impairment of strategic investments and non-marketable securities that were determined to be other-than-temporary. No impairment losses were recognized through earnings related to available for sale securities during the three months ended September30, 2009. For the nine months ended September30, 2009, we recognized $3.6million in charges. For the three and nine months ended September30, 2008, we recognized $14.1million and $19.3million, respectively, in charges for the other-than-temporary impairment of available for sale securities primarily related to mortgage and asset backed securities. Noncontrolling Interest Effective January1, 2009, we changed the accounting and reporting for our minority interests by recharacterizing them as noncontrolling interest. Prior year amounts related to noncontrolling interest, historically reflected as a component of other income (expense), net, have been reclassified to conform to current year presentation. Amounts previously reported as minority interest are now shown separately from net income in the accompanying conso

Collaborations

Collaborations
	9 Months Ended Sep. 30, 2009 USD / shares
Collaborations [Abstract]
Collaborations	14. Collaborations In connection with our business strategy, we have entered into various collaboration agreements which provide us with rights to develop, produce and market products using certain know-how, technology and patent rights maintained by our collaborative partners. Terms of the various collaboration agreements may require us to make milestone payments upon the achievement of certain product research and development objectives and pay royalties on future sales, if any, of commercial products resulting from the collaboration. Effective January1, 2009, we adopted a newly issued accounting standard for the accounting and disclosure of an entitys collaborative arrangements. This newly issued standard prescribes that certain transactions between collaborators be recorded in the income statement on either a gross or net basis, depending on the characteristics of the collaboration relationship, and provides for enhanced disclosure of collaborative relationships. In accordance with this guidance, we must also evaluate our collaborative agreements for proper income statement classification based on the nature of the underlying activity. Amounts due from our collaborative partners related to development activities are generally reflected as a reduction of research and development expense because the performance of contract development services is not central to our operations. For collaborations with commercialized products, if we are the principal (as defined in reporting revenue as a principal versus net as an agent as required by the Revenue Recognition Topic of the Codification) we record revenue and the corresponding operating costs in their respective line items within our consolidated statements of income. If we are not the principal, we record operating costs as a reduction of revenue. The guidance describes the principal as the party who is responsible for delivering the product or service to the customer, has latitude to determine price, and has the risks and rewards of providing product or service to the customer, including inventory and credit risk. The adoption of this newly issued accounting standard did not impact our financial position or results of operations; however it resulted in enhanced disclosures for our collaboration activities. Genentech We collaborate with Genentech, Inc., or Genentech, a member of the Roche Group, on the development and commercialization of RITUXAN. We also have rights to collaborate with Genentech on the development and commercialization of (1)anti-CD20 products that Genentech acquires or develops, which we refer to as New Anti-CD20 Products, and (2)anti-CD20 products that Genentech licenses from a third party, which we refer to as Third Party Anti-CD20 Products. Currently, there is only one New Anti-CD20 Product, ocrelizumab, and only one Third Party Anti-CD20 Product, GA101. Our collaboration rights for New Anti-CD20 Products are limited to the United States and our collaboration rights for Third Party Anti-CD20 Products are dependent upon Genentechs underlying license rights. A joint development committee, or JDC, composed of three members from each company mu

Litigation

Litigation
	9 Months Ended Sep. 30, 2009 USD / shares
Litigation [Abstract]
Litigation	15. Litigation Along with several other major pharmaceutical and biotechnology companies, Biogen, Inc. (now Biogen Idec MA, Inc., one of our wholly-owned subsidiaries) or, in some cases, Biogen Idec Inc., was named as a defendant in lawsuits filed by the City of New York and numerous Counties of the State of New York. All of the cases except for cases filed by the County of Erie, County of Oswego and County of Schenectady, or the Three County Actions are the subject of a Consolidated Complaint, first filed on September15, 2005 in the U.S.District Court for the District of Massachusetts in Multi-District Litigation No.1456, or the MDL proceedings. The complaints allege that the defendants (i)fraudulently reported the Average Wholesale Price for certain drugs for which Medicaid provides reimbursement, or the Covered Drugs; (ii)marketed and promoted the sale of Covered Drugs to providers based on the providers ability to collect inflated payments from the government and Medicaid beneficiaries that exceeded payments possible for competing drugs; (iii)provided financing incentives to providers to over-prescribe Covered Drugs or to prescribe Covered Drugs in place of competing drugs; and (iv)overcharged Medicaid for illegally inflated Covered Drugs reimbursements. Among other things, the complaints allege violations of New York state law and advance common law claims for unfair trade practices, fraud, and unjust enrichment. In addition, the amended Consolidated Complaint alleges that the defendants failed to accurately report the best price on the Covered Drugs to the Secretary of Health and Human Services pursuant to rebate agreements, and excluded from their reporting certain discounts and other rebates that would have reduced the best price. With respect to the MDL proceedings, some of the plaintiffs claims were dismissed, and the parties, including Biogen Idec, began a mediation of the outstanding claims on July1, 2008. We have not formed an opinion that an unfavorable outcome is either probable or remote in any of these cases, and do not express an opinion at this time as to their likely outcome or as to the magnitude or range of any potential loss. We believe that we have good and valid defenses to each of these complaints and are vigorously defending against them. On September12, 2006, the Massachusetts Department of Revenue, or the DOR, issued a notice of assessment against Biogen Idec MA, Inc. for $38.9million of corporate excise tax with respect to the 2002 tax year, which includes associated interest and penalties. On December6, 2006, we filed an abatement application with the DOR, seeking abatements for 2001, 2002 and 2003 tax years. The abatement application was denied on July24, 2007. On July25, 2007, we filed a petition with the Massachusetts Appellate Tax Board, seeking, among other items, abatements of corporate excise tax for 2001, 2002 and 2003 tax years and adjustments in certain credits and credit carryforwards for 2001, 2002 and 2003 tax years. Issues before the Board include the computation of Biogen Idec MAs sales factor for 2001, 2002 and 2003 tax years, computation of Biogen Idec MAs research credits

Segment Information

Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Segment Information [Abstract]
Segment Information	16. Segment Information We operate in one business segment, which is the business of development, manufacturing and commercialization of novel therapeutics for human health care and therefore, our chief operating decision-maker manages the operation of the Company as a single operating segment.

New Accounting Pronouncements

New Accounting Pronouncements
	9 Months Ended Sep. 30, 2009 USD / shares
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	17. New Accounting Pronouncements From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Companys management believes that the impact of recently issued standards that are not yet effective will not have a material impact on its consolidated financial position or results of operations upon adoption. Recently Issued Accounting Standards In August 2009, the FASB issued Accounting Standards Update No.2009-05, Measuring Liabilities at Fair Value, or ASU 2009-05. ASU 2009-05 amends Accounting Standards Codification Topic 820, Fair Value Measurements. Specifically, ASU 2009-05 provides clarification that in circumstances in which a quoted price in an active market for the identical liability is not available, a reporting entity is required to measure fair value using one or more of the following methods: 1)a valuation technique that uses a)the quoted price of the identical liability when traded as an asset or b)quoted prices for similar liabilities or similar liabilities when traded as assets and/or 2)a valuation technique that is consistent with the principles of Topic 820 of the Accounting Standards Codification (e.g. an income approach or market approach). ASU 2009-05 also clarifies that when estimating the fair value of a liability, a reporting entity is not required to adjust to include inputs relating to the existence of transfer restrictions on that liability. The adoption of this standard did not have an impact on our financial position or results of operations; however, this standard may impact us in future periods. In September 2009, the FASB issued ASU No.2009-12, Fair Value Measurements and Disclosure, or ASU 2009-12. This standard provides additional guidance on using the net asset value per share, provided by an investee, when estimating the fair value of an alternate investment that does not have a readily determinable fair value and enhances the disclosures concerning these investments. Examples of alternate investments, within the scope of this standard, include investments in hedge funds and private equity, real estate, and venture capital partnerships. This Standard is effective for interim and annual periods ending after December15, 2009. At of September30, 2009, our only investments falling within the scope of this Standard are our venture capital investments. For these investments we use the net asset value to assess fair value. Refer to Note5, Fair Value Measurements, of this Form10-Q for additional disclosure related to our venture capital investments. We are currently evaluating the potential impact of this standard on our financial position and results of operations. In October 2009, the FASB issued ASU No.2009-13, Multiple-Deliverable Revenue Arrangements, or ASU 2009-13. ASU 2009-13, amends existing revenue recognition accounting pronouncements that are currently within the scope of FASB Accounting Standards Codification, or ASC, Subtopic 605-25 (previously included within EITF00-21, Revenue Arrangements with Multiple Deliverables, or E