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Exhibit 99.1
BIOGEN, INC.
BIOGEN SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
DECEMBER 31, 1999 AND 1998
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
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Report of Independent Accountants 1
Statement of Assets Available for Plan Benefits as of December 31, 1999 and 1998 2
Statements of Changes in Assets Available for Plan Benefits for the Years Ended
December 31, 1999 and 1998 3
Notes to Financial Statements 4-7
Supplemental Schedules*:
Supplemental Schedule I
Assets Held for Investment Purposes as of December 31, 1999 8
Supplemental Schedule II
Transactions Involving Amounts in Excess of 5% of the Current Value 9
of Plan Assets for the Year Ended December 31, 1999
* 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, 1999 and 1998,
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. 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,
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 the opinion expressed above.
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, 2000
PricewaterhouseCoopers LLP
Boston, Massachusetts
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BIOGEN, INC.
BIOGEN SAVINGS PLAN
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS
DECEMBER 31, 1999 AND 1998
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1999 1998
ASSETS
Investments at fair value:
Mutual Funds:
Fidelity Intermediate Bond Fund $ 1,375,497 $ 1,226,161
Fidelity Puritan Fund* 5,873,976 5,393,202
Fidelity Value Fund 824,946 1,002,445
Fidelity Magellan Fund* 12,722,798 9,278,946
Fidelity Retirement Government
Money Market Fund 1,978,221 1,632,338
Fidelity Growth Company Fund* 15,675,154 7,802,376
Fidelity International Growth Income Fund 11,528 --
Fidelity Asset Manager Fund 1,344,059 1,066,774
Fidelity US Equity Index Fund* 4,129,562 2,677,468
Fidelity US Bond Index Fund 420,465 279,121
Fidelity Low-Priced Stock Fund 711,337 486,853
USAA International Fund 772,722 535,219
Janus Worldwide Fund 2,669,669 749,449
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Total mutual funds 48,509,934 32,130,352
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Biogen, Inc. Stock Fund:
Biogen, Inc. common stock* 18,858,795 8,523,321
Interest bearing cash 271,009 174,421
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Total Biogen, Inc. Stock Fund 19,129,804 8,697,742
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Loans to participants 715,247 743,526
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Total investments 68,354,985 41,571,620
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Receivables:
Investment income receivable 1,767 --
Receivable for investments sold 116,760 --
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Total receivables 118,527 --
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Assets available for plan benefits $68,473,512 $41,571,620
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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, 1999 AND 1998
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1999 1998
Additions:
Net appreciation of investments:
Mutual funds $ 8,205,188 $ 3,580,013
Biogen, Inc. common stock 9,376,362 4,654,644
Investment income:
Dividends and interest 3,227,039 2,116,226
Contributions:
Employer contributions 759,576 620,721
Participant contributions 5,214,809 4,228,628
Participant rollovers 1,631,157 1,071,575
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Total additions 28,414,131 16,271,807
Deductions:
Benefits paid to participants 1,511,839 2,963,213
Administrative fees 400 116
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Total deductions 1,512,239 2,963,329
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Net increase 26,901,892 13,308,478
Assets available for plan benefits:
Beginning of year 41,571,620 28,263,142
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End of year $68,473,512 $41,571,620
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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"). The
majority of administrative costs of the Plan have been assumed by the
Company.
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.
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:
o An intermediate bond fund designed to earn a high level of current
return. It is invested in Fidelity's Intermediate Bond Fund.
o 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.
o 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.
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o An aggressive growth fund invested which seeks to achieve capital
appreciation. It is invested in Fidelity's Magellan Fund.
o 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.
o 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.
o An international equity fund which seeks capital growth, current
income and growth of income. It is invested in the Fidelity
International Growth & Income Fund.
o An asset allocation fund that seeks total return with reduced risk
over the long term. It is invested in the Fidelity Asset Manager
Fund.
o 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
Fidelity US Equity Index Fund.
o 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 the Fidelity US Bond Index
Fund.
o 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 the Fidelity Low-Priced
Stock Fund.
o 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.
o 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.
o 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.
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.
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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 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 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.
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.
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RECLASSIFICATIONS
Amounts shown by investment fund option on the statement of assets
available for plan benefits as of December 31, 1998 and the statement
of changes in assets available for plan benefits for the year ended
December 31, 1998 have been reclassified to be shown in total to
conform to current year presentation in order to adopt AICPA Statement
of Position 99-3, "Accounting for and Reporting of Certain Investments
for Defined Contribution Benefit Plans."
3. LOANS TO PARTICIPANTS
At December 31, 1999 and 1998, the Plan had loans receivable from
participants aggregating $715,247 and $743,526, respectively. Interest
rates on the loans range from 7.0% to 11.0% 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. NONPARTICIPANT-DIRECTED INVESTMENT
Information about the assets and the significant components of the
changes in assets relating to the nonparticipant-directed investment is
as follows:
DECEMBER 31,
1999 1998
Assets:
Biogen, Inc. Stock Fund $19,129,804 $8,697,742
Receivables 118,527 --
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$19,248,331 $8,697,742
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YEAR ENDED
DECEMBER 31,
1999 1998
Changes in Assets:
Employer contributions $ 759,576 $ 620,721
Participant contributions 521,651 124,328
Dividends 17,924 --
Net appreciation 9,376,362 4,654,644
Transfer of investments from other options 370,227 95,758
Benefits paid to participants (495,151) (361,370)
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$10,550,589 $5,134,081
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BIOGEN, INC. SUPPLEMENTAL SCHEDULE I
BIOGEN SAVINGS PLAN
ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1999
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NUMBER OF
SHARES/ CURRENT
UNITS COST VALUE
--------- ---- -------
140,932 Fidelity Intermediate Bond Fund* $ 1,375,497
308,669 Fidelity Puritan Fund* 5,873,976
18,830 Fidelity Value Fund* 824,946
93,119 Fidelity Magellan Fund* 12,722,798
1,978,221 Fidelity Retirement Government Money
Market Fund* 1,978,221
185,945 Fidelity Growth Company Fund* 15,675,154
383 Fidelity International Growth Income Fund 11,528
68,330 Fidelity Asset Manager Fund* 1,344,059
79,277 Fidelity U.S. Equity Index Fund* 4,129,562
41,263 Fidelity US Bond Index Fund* 420,465
31,419 Fidelity Low-Priced Stock Fund* 711,337
32,952 USAA International Fund 772,722
34,930 Janus Worldwide Fund 2,669,669
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Total mutual funds 48,509,934
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223,181 Biogen, Inc. common stock* $4,469,031 18,858,795
Interest bearing cash 271,009
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Total Biogen, Inc. Stock Fund 19,129,804
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Loans to participants* 7.0% to 11.0% 715,247
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Total $68,354,985
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* Party-in-interest.
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BIOGEN, INC. SUPPLEMENTAL SCHEDULE II
BIOGEN SAVINGS PLAN
TRANSACTIONS INVOLVING AMOUNTS IN EXCESS OF 5% OF CURRENT VALUE OF PLAN ASSETS
YEAR ENDED DECEMBER 31, 1999
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CURRENT
DESCRIPTION VALUE ON
OF PURCHASE SELLING LEASE EXPENSE HISTORICAL TRANSACTION
PARTY INVOLVED ASSET PRICE PRICE RENTAL INCURRED COST DATE GAIN (LOSS)
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Biogen, Inc. Biogen, Inc. common stock $2,950,330 $ -- $ -- $ -- $ -- $2,950,330 $ --
1,460,975 -- -- 1,144,819 1,460,975 316,156
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