Biogen's Financial Strength An Advantage

For US biotechnology company Biogen, 1993 was its fifth consecutive year of profitability. The company derived substantial royalty revenues from sales of five Biogen products around the world through licensees. "Biogen has a clear advantage over many companies in our industry because we have been able to make critical strategic decisions in an atmosphere of financial strength and confidence," said chairman and chief executive James Vincent in the company's 1993 annual report.

Sales by Schering-Plough of Intron A (interferon alfa) led royalty revenues at Biogen, and were backed up by sales of hepatitis B vaccines sold by SmithKline Beecham and Merck & Co. Sales of these products amounted to $1.5 billion, up from $1.3 billion in 1992.

Biogen said that sales growth of these products has continued from the breakthrough levels established in 1992, primarily as a result of the US Occupational Safety and Health Administration requirement that health care workers be vaccinated for hepatitis B. Furthermore, pediatric vaccination is now part of the standard regimen for newborn babies in the USA, and the World Health Organization has recommended that the vaccine becomes part of the basic worldwide immunization package.