EXHIBIT 99.1
BIOGEN, INC.
BIOGEN SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
DECEMBER 31, 2001 AND 2000
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, 2001 and 2000 2
Statements of Changes in Assets Available for Plan Benefits for the Years Ended
December 31, 2001 and 2000 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 31, 2001 9
Supplemental Schedule II - Schedule of Reportable Transactions for the
Year Ended December 31, 2001 10
* Other schedules have been omitted because such schedules are not applicable.
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, 2001 and 2000,
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 14, 2002
PricewaterhouseCoopers LLP
Boston, Massachusetts
BIOGEN, INC.
BIOGEN SAVINGS PLAN
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 2001 AND 2000
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2001 2000
Assets
Investments at fair value:
Mutual funds:
Fidelity Intermediate Bond Fund $ 1,632,995 $ 1,301,556
Fidelity Puritan Fund 6,014,678 * 5,685,899 *
Fidelity Value Fund 1,847,441 960,195
Fidelity Magellan Fund 11,541,258 * 12,113,732 *
Fidelity Retirement Government Money Market Fund 2,560,667 1,969,913
Fidelity Growth Company Fund 13,015,719 * 15,783,298 *
Fidelity International Growth & Income Fund 6,389 11,408
Fidelity Asset Manager Growth Fund 1,601,223 1,491,133
Spartan US Equity Index Fund 4,224,140 * 4,272,674 *
Spartan International Index Fund 106,032 33,993
Fidelity US Bond Index Fund 1,320,628 647,237
Fidelity Low-Priced Stock Fund 1,986,433 891,672
USAA International Fund 776,856 932,954
Janus Worldwide Fund 2,958,086 3,639,988 *
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Total mutual funds 49,592,545 49,735,652
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Biogen, Inc. Stock Fund:
Biogen, Inc. common stock 15,618,183 * 14,756,816 *
Interest bearing cash 351,311 380,131
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Total Biogen, Inc. Stock Fund 15,969,494 15,136,947
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Loans to participants 803,217 825,095
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Total investments 66,365,256 65,697,694
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Receivables:
Investment income receivable 1,113 1,864
Receivable for investments sold -- 15,327
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Total receivables 1,113 17,191
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Assets available for plan benefits $66,366,369 $65,714,885
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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, 2001 AND 2000
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2001 2000
Additions:
Investment income;
Net depreciation of investments:
Mutual funds $ (7,353,565) $ (6,348,603)
Biogen, Inc. common stock (671,278) (4,947,230)
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Total net depreciation of investments (8,024,843) (11,295,833)
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Dividends and interest:
Mutual funds 973,943 3,582,519
Biogen, Inc. Stock Fund interest bearing cash 19,410 25,796
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Total dividends and interest 993,353 3,608,315
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Contributions;
Employer contributions 1,223,138 1,039,943
Participant contributions 7,357,102 6,306,950
Participant rollovers 1,263,868 1,754,222
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Total contributions 9,844,108 9,101,115
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Total additions 2,812,618 1,413,597
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Deductions:
Benefits paid to participants 319,076 272,024
Participant rollovers 1,841,970 3,900,000
Administrative fees 88 200
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Total deductions 2,161,134 4,172,224
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Net increase (decrease) 651,484 (2,758,627)
Assets available for plan benefits:
Beginning of year 65,714,885 68,473,512
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End of year $ 66,366,369 $ 65,714,885
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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 (as described below) to
the Plan in whole percentages of their gross salary ranging from a
minimum of 2% to a maximum of 18% (40% as of January 1, 2002), subject
to certain limitations. For each pay period, the Company will make a
matching contribution (as described below) 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 April 1, 2002, matching contributions will be
made into the same funds as selected by the participants for their own
contributions, and not exclusively into the Biogen Stock Fund.
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.
Effective January 1, 2002, eligible employees are allowed to contribute
after-tax savings deposits to the Plan, subject to certain limitations.
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.
4
BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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INVESTMENT OF CONTRIBUTIONS
Company matching contributions are invested in the Biogen, Inc. Stock
Fund. Effective April 1, 2002, matching contributions will be made into
the same funds as selected by the participants for their own
contributions, and not exclusively into 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 1% 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.
- 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.
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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- 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.
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.
BENEFIT PAYMENTS
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 Plan 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.
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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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.
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, 2001 and 2000, the Plan had loans receivable from
participants aggregating $803,217 and $825,095, respectively. Interest
rates on the loans range from 6.5% to 9.5% annually. The loans are
collateralized by the participant's interest in the Plan.
4. PARTY-IN-INTEREST TRANSACTIONS
The Plan invests in common stock of Biogen, Inc., the employer, and
transactions in this common stock are party-in-interest transactions.
During the years ended December 31, 2001 and 2000, the Plan purchased
shares of the common stock having values of $1,885,797 and $4,209,260,
respectively, and sold shares of the common stock having values of
$1,759,867 and $3,656,278, respectively.
7
BIOGEN, INC.
BIOGEN SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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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,
2001 2000
Assets:
Biogen, Inc. Stock Fund $l5,969,494 $15,136,947
Receivables 1,113 17,191
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$15,970,607 $15,154,138
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Year Ended
December 31,
2001 2000
Changes in Assets:
Employer contributions $ 1,218,822 $ 1,039,943
Participant contributions 901,085 719,034
Interest 19,410 23,230
Net appreciation/(depreciation) (671,278) (4,947,230)
Transfer of investments from other options (145,541) 332,470
Benefits paid to participants (506,029) (1,261,640)
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$ 816,469 $ (4,094,193)
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8
BIOGEN, INC.
BIOGEN SAVINGS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
(SCHEDULE H, PART IV, ITEM 4i, FORM 5500)
DECEMBER 31,2001 SUPPLEMENTAL SCHEDULE I
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Number of
Shares/ Current
Units Cost Value
158,236 Fidelity Intermediate Bond Fund* $ 1,632,995
340,389 Fidelity Puritan Fund* 6,014,678
35,866 Fidelity Value Fund* 1,847,441
110,739 Fidelity Magellan Fund* 11,541,258
2,560,667 Fidelity Retirement Government Money Market Fund* 2,560,667
244,564 Fidelity Growth Company Fund* 13,015,719
341 Fidelity International Growth & Income Fund* 6,389
111,661 Fidelity Asset Manager Growth Fund* 1,601,223
103,940 Spartan U.S. Equity Index Fund* 4,224,140
4,338 Spartan International Index Fund* 106,032
122,280 Fidelity US Bond Index Fund* 1,320,628
72,445 Fidelity Low-Priced Stock Fund* 1,986,433
46,297 USAA International Fund 776,856
67,475 Janus Worldwide Fund 2,958,086
------------
Total mutual funds 49,592,545
------------
272,331 Biogen, Inc. common stock* $ 8,437,235 15,618,183
Interest bearing cash 351,311 351,311
------------
Total Biogen, Inc. Stock Fund 15,969,494
------------
Loans to participants* 6.5% to 9.5% 803,217
------------
Total $ 66,365,256
============
* Party-in-interest.
9
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, 2001 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 $ 1,885,797 $ -- $ -- $ -- $ -- $1,885,797 $ --
Biogen, Inc. Biogen, Inc. common stock -- 1,759,867 -- -- 1,740,607 1,759,867 19,260
* Non-participant directed transactions in excess of 5% of the current value
of the Plan's assets as of December 31, 2001 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 Income Act of 1974.
10