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BIOGEN, INC.
BIOGEN SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
DECEMBER 31, 2000 AND 1999
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
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Page
Report of Independent Accountants 1
Statement of Assets Available for Plan Benefits as of
December 31, 2000 and 1999 2
Statements of Changes in Assets Available for Plan Benefits
for the Years Ended December 3l, 2000 and 1999 3
Notes to Financial Statements 4-8
Supplemental Schedules*:
Schedule I - Schedule of Assets Held for Investment Purposes
at End of Year as of December 3l, 2000 9
Supplemental Schedule II - Schedule of Reportable
Transactions for the Year Ended December 31, 2000 10
* Other schedules have been omitted because such schedules are not
applicable.
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Participants and Administrator
of the Biogen Savings Plan
In our opinion, the accompanying statements of assets available for plan
benefits and the related statements of changes in assets available for plan
benefits present fairly, in all material respects, the assets available for plan
benefits of the Biogen Savings Plan (the "Plan") at December 31, 2000 and 1999,
and the changes in assets available for plan benefits for the years then ended
in conformity with accounting principles generally accepted in the United States
of America. These financial statements are the responsibility of the Plan's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The Supplemental Schedules I and II are
presented for the purpose of additional analysis and are not a required part of
the basic financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. These supplemental
schedules are the responsibility of the Plan's management. The supplemental
schedules have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
June 27, 2001
PricewaterhouseCoopers LLP
Boston, Massachusetts
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 2000 AND 1999
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2000 1999
ASSETS
Investments at fair value:
Mutual funds:
Fidelity Intermediate Bond Fund $ 1,301,556 $ 1,375,497
Fidelity Puritan Fund 5,685,899* 5,873,976*
Fidelity Value Fund 960,195 824,946
Fidelity Magellan Fund 12,113,732* 12,722,798*
Fidelity Retirement Government Money Market Fund 1,969,913 1,978,221
Fidelity Growth Company Fund 15,783,298* 15,675,154
Fidelity International Growth & Income Fund 11,408 11,528
Fidelity Asset Manager Growth Fund 1,491,133 1,344,059
Spartan US Equity Index Fund 4,272,674* 4,129,562*
Spartan International Index Fund 33,993 --
Fidelity US Bond Index Fund 647,237 420,465
Fidelity Low-Priced Stock Fund 891,672 711,337
USAA International Fund 932,954 772,722
Janus Worldwide Fund 3,639,988* 2,669,669
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Total mutual funds 49,735,652 48,509,934
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Biogen, Inc. Stock Fund:
Biogen, Inc. common stock 14,756,816* 18,858,795*
Interest bearing cash 380,131 271,009
----------- -----------
Total Biogen, Inc. Stock Fund 15,136,947 19,129,804
----------- -----------
Loans to participants 825,095 715,247
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Total investments 65,697,694 68,354,985
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Receivables:
Investment income receivable 1,864 1,767
Receivable for investments sold 15,327 116,760
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Total receivables 17,191 118,527
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Assets available for plan benefits $65,714,885 $68,473,512
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* Represents 5% or more of assets available for plan benefits.
The accompanying notes are an integral part of these financial statements
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR PLAN BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
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2000 1999
Additions:
Net appreciation of investments:
Mutual funds $ (6,348,603) $ 8,205,188
Biogen, Inc. common stock (4,947,230) 9,376,362
Investment income:
Dividends and interest 3,608,315 3,227,039
Contributions:
Employer contributions 1,039,943 759,576
Participant contributions 6,306,950 5,214,809
Participant rollovers 1,754,222 1,631,157
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Total additions 1,413,597 28,414,131
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Deductions:
Benefits paid to participants 4,172,024 1,511,839
Administrative fees 200 400
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Total deductions 4,172,224 1,512,239
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Net increase (decrease) (2,758,627) 26,901,892
Assets available for plan benefits:
Beginning of year 68,473,512 41,571,620
------------ ------------
End of year $ 65,714,885 $ 68,473,512
============ ============
The accompanying notes are an integral part of these financial statements
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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1. DESCRIPTION OF THE PLAN
The following brief description of the Biogen Savings Plan (the "Plan") is
provided for general information purposes only. Participants should refer
to the Plan agreement for more complete information.
GENERAL INFORMATION
Biogen, Inc. (the "Company") established the Plan as a deferred
profit-sharing plan under Section 401(a) of the Internal Revenue Code of
1986, effective January 1, 1987. The Plan is designed to allow eligible
employees to accumulate savings for retirement in the Plan without paying
income taxes until the savings are actually received.
ADMINISTRATION OF THE PLAN
The Plan is administered by the Savings Plan Committee (the "Plan
Committee"), whose members are appointed by the Company. Fidelity
Management Trust Company is the Plan trustee (the "Trustee").
PARTICIPATION
Participation in the Plan is voluntary. Each employee of the Company is
eligible to participate in the Plan upon the attainment of age 21 unless
he/she is (a) a student employed on a temporary basis, (b) an employee of
a non-U.S. subsidiary or division of the Company, or (c) a member of a
collective bargaining unit.
CONTRIBUTIONS
Eligible employees may make savings deposits to the Plan in whole
percentages of their gross salary ranging from a minimum of 2% to a maximum
of 18%, subject to certain limitations. For each pay period, the Company
will make a matching contribution of units of the Biogen, Inc. Stock Fund
equal in value to 25% of each employee's savings deposit up to a maximum of
6% of the employee's gross salary, subject to certain limitations.
Effective August 1, 2000, following the end of each plan year (beginning
with the 1999 plan year), an additional true-up matching contribution may
be made on behalf of an eligible participant who has not received the full
benefit of the Company matching contribution.
PARTICIPANT ACCOUNTS
Fidelity Investments Institutional Operations Company, Inc. is the Plan's
recordkeeper. Each participant's account is credited with the participant's
contribution, the Company's matching contribution and Plan earnings.
Allocations are based on participant earnings or account balances, as
defined. The benefit to which a participant is entitled is the benefit that
can be provided from the participant's vested account.
INVESTMENT OF CONTRIBUTIONS
Company matching contributions are invested in the Biogen, Inc. Stock Fund.
The Biogen, Inc. Stock Fund includes Biogen, Inc. stock and cash or short
term investments for liquidity purposes. Employee contributions are
invested at the direction of the employee in increments of 10% in any
combination of the following investment options:
* An intermediate bond fund designed to earn a high level of current
return. It is invested in Fidelity's Intermediate Bond Fund.
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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* A balanced fund designed to preserve principal balance by investing in
a diversified portfolio of high yielding stocks and bonds. It is
invested in Fidelity's Puritan Fund.
* A fund which seeks to provide capital appreciation from investments in
companies which are undervalued or which possess valuable fixed
assets. It is invested in Fidelity's Value Fund.
* An aggressive growth fund invested which seeks to achieve capital
appreciation. It is invested in Fidelity's Magellan Fund.
* A US government money market fund seeks high current earnings while
preserving capital and liquidity. It is invested in Fidelity's
Retirement Government Money Market Fund.
* A growth company fund which seeks to provide capital appreciation from
investments primarily in common stock of companies with above-average
growth characteristics. It is invested in Fidelity's Growth Company
Fund.
* An international equity fund which seeks capital growth, current
income and growth of income. It is invested in Fidelity's
International Growth & Income Fund.
* An asset allocation fund that seeks total return with reduced risk
over the long term. It is invested in Fidelity's Asset Manager Growth
Fund.
* A long term growth fund which seeks to provide investment results that
correspond to the total return performance of common stock of
companies publicly traded in the US. It is invested in the Spartan US
Equity Index Fund, a Fidelity sponsored fund.
* A fund that seeks to provide investment results that correspond to the
total return of foreign stock markets. It is invested in the Spartan
International Index Fund, a Fidelity sponsored fund.
* A corporate bond fund that seeks to replicate the price and interest
performance of the debt securities in the Lehman Brothers Aggregate
Bond Index. It is invested in Fidelity's US Bond Index Fund.
* A fund which seeks to provide capital appreciation from investments in
companies which are undervalued or which are out of favor with other
investors and that could offer the possibility for significant growth.
It is invested in Fidelity's Low-Priced Stock Fund.
* A fund that seeks long term capital growth and current income from
investments in stocks of companies organized and operating principally
outside the United States. It is invested in the USAA International
Fund.
* A fund that seeks capital growth over the long term from investments
in common stocks of foreign and domestic companies. It is invested in
the Janus Worldwide Fund.
* A fund that pools money to buy shares of Biogen, Inc. stock and cash
or short-term investments. It is invested in the Biogen, Inc. Stock
Fund.
Dividends, interest, and other distributions received in any fund are
reinvested in the same fund.
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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VESTING
Participants are fully vested in their savings deposit accounts and
rollover accounts at all times. Participants will vest in the employer's
matching contribution at a rate of 25% for each year of Plan service and
will be fully vested after four years of Plan service. Participants become
100% vested in employer's matching contributions upon retirement or
termination of employment due to disability.
WITHDRAWALS AND DISTRIBUTIONS
Distributions are generally payable at termination of employment due to
retirement, disability, death or any other reason. Distribution payments
are made in cash in a lump sum for employees' contributions and in whole
shares of stock for Company matching contributions. Forfeitures of
nonvested amounts are used to reduce the amount of future Company matching
contributions.
LOANS
Participants may borrow against their savings deposits. Loans will bear a
reasonable interest rate determined by the Company. Repayment of loans is
made by direct withholdings of a participant's salary for a period not to
exceed five years (ten years for a residential loan). The minimum loan
amount is $1,000 and a participant may borrow up to a maximum of 50% of the
participant's vested account balance or $50,000, whichever is smaller.
There is no minimum service requirement for a participant to be eligible
for a loan.
PLAN AMENDMENT AND TERMINATION
The Company has the right to amend, suspend or terminate the Plan, but may
not do so in a way which would divest a participant of accrued vested
benefits. If the Plan is terminated, the Trustee will distribute the assets
held in the trust, after payment of expenses, in such a manner as the
Committee shall determine. The Company currently has no intention to
terminate the Plan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies which are in conformity with accounting principles
generally accepted in the United States of America consistently followed by
the Plan in the preparation of its financial statements.
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared on the accrual basis of
accounting.
INVESTMENTS
Plan investments are stated at fair value. The Company stock is valued at
its quoted market price. Mutual fund investments are valued at net asset
value representing the value of which shares of the fund may be purchased
or redeemed. Loans to participants are stated at principal plus accrued
interest, which approximates fair value.
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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Purchases and sales of securities are recorded on a trade-date basis. Cost
is determined on the average cost basis. Net appreciation or depreciation,
which includes realized and unrealized gains or losses on investments, is
reflected for the year in the statement of changes in assets available for
plan benefits. Interest income is recorded on the accrual basis. Dividends
are recorded on the ex-dividend date.
PAYMENT OF BENEFITS
Benefits are recorded when paid.
INCOME TAXES
No provision for income taxes has been made in the financial statements as
the Plan qualifies as a tax-exempt entity under Section 401 of the Internal
Revenue Code ("Code"). The Plan has received a favorable determination
letter dated June 5, 1996 from the Internal Revenue Service. The Plan has
since been amended and a new letter has not been requested. Management has
asserted the Plan, as amended, and its operations have been and continue to
be in accordance with all applicable provisions of the Code and the
Employee Retirement Income Security Act of 1974 ("ERISA").
EXPENSES OF THE PLAN
Administrative and audit fees are paid directly by the Company and,
accordingly, such items are not reflected in the financial statements of
the Plan. Expenses directly related to the investment transactions of the
Plan are paid by the Plan.
3. LOANS TO PARTICIPANTS
At December 31, 2000 and 1999, the Plan had loans receivable from
participants aggregating $825,095 and $715,247, respectively. Interest
rates on the loans range from 7.0% to 9.50% annually. The loans are secured
by the participant's interest in the Plan.
4. PARTY-IN-INTEREST TRANSACTIONS
Certain of the Plan's assets are invested in mutual funds for which FMR
Corp. provides investment advisory services. FMR Corp. is an affiliate of
both Fidelity Management Trust Company and Fidelity Investments
Institutional Operations Company, Inc. Accordingly, these transactions
qualify as party-in-interest.
5. NON-PARTICIPANT-DIRECTED INVESTMENT
Information about the assets and the significant components of the changes
in assets relating to the non-participant-directed investment is as
follows:
DECEMBER 31,
2000 1999
Assets:
Biogen, Inc, Stock Fund $15,136,947 $19,129,804
Receivables 17,191 118,527
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$15,154,138 $19,248,331
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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YEAR ENDED
DECEMBER 31,
2000 1999
Changes in Assets:
Employer contributions $ 1,039,943 $ 759,576
Participant contributions 719,034 521,651
Dividends 23,230 17,924
Net appreciation/(depreciation) (4,947,230) 9,376,362
Transfer of investments from other options 332,470 370,227
Benefits paid to participants (1,261,640) (495,151)
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$ (4,094,193) $ 10,550,589
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(SCHEDULE H, PART IV, ITEM 4i, FORM 5500)
DECEMBER 31, 2000 SUPPLEMENTAL SCHEDULE I
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NUMBER OF
SHARES/ CURRENT
UNITS COST VALUE
129,637 Fidelity Intermediate Bond Fund* $ 1,301,556
301,960 Fidelity Puritan Fund* 5,685,899
20,716 Fidelity Value Fund* 960,195
101,540 Fidelity Magellan Fund* 12,113,732
1,969,913 Fidelity Retirement Government Money 1,969,913
Market Fund*
220,962 Fidelity Growth Company Fund* 15,783,298
502 Fidelity International Growth & Income Fund 11,408
93,723 Fidelity Asset Manager Growth Fund* 1,491,133
91,277 Spartan U.S. Equity Index Fund* 4,272,674
1,073 Spartan International Index Fund* 33,993
61,118 Fidelity US Bond Index Fund* 647,237
38,567 Fidelity Low-Priced Stock Fund* 891,672
46,977 USAA International Fund 932,954
64,017 Janus Worldwide Fund 3,639,988
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Total mutual funds 49,735,652
-----------
245,691 Biogen, Inc. common stock* $6,678,642 14,756,816
Interest bearing cash 380,131 380,131
-----------
Total Biogen, Inc. Stock Fund 15,136,947
-----------
Loans to participants* 7.0% to 9.5% 825,095
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Total $65,697,694
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* Party-in-interest.
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS (INVOLVING AMOUNTS IN EXCESS OF 5% OF
CURRENT VALUE OF PLAN ASSETS)*
(SCHEDULE H, PART IV, ITEM 4j, FORM 5500)
YEAR ENDED DECEMBER 31, 2000 SUPPLEMENTAL SCHEDULE II
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CURRENT
VALUE ON
PURCHASE SELLING LEASE EXPENSE HISTORICAL TRANSACTION
PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE RENTAL INCURRED COST DATE GAIN (LOSS)
Biogen, Inc. Biogen, Inc. common stock $4,209,260 $ -- $ -- $ -- $ -- $4,209,260 $ --
-- 3,656,278 -- -- 3,956,334 3,656,278 (300,056)
* Non-participant directed transactions in excess of 5% of the current value
of the Plan's assets as of December 31, 1999 as defined by Section
2520.103-6 of the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Security Act of 1974.
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