XML 72 R53.htm IDEA: XBRL DOCUMENT v2.4.1.9
Collaborative and Other Relationships (Tables)
12 Months Ended
Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Co-promotion profit sharing formula
Until GAZYVA First Non-CLL FDA Approval
40.0
%
After GAZYVA First Non-CLL FDA Approval until First GAZYVA Threshold Date
39.0
%
After First GAZYVA Threshold Date until Second GAZYVA Threshold Date
37.5
%
After Second GAZYVA Threshold Date
35.0
%
First Non-CLL GAZYVA FDA Approval means the FDA’s first approval of GAZYVA in an indication other than CLL.
First GAZYVA Threshold Date means the earlier of (1) the date of the First Non-CLL GAZYVA FDA approval if U.S. gross sales of GAZYVA for the preceding consecutive 12 month period were at least $150.0 million or (2) the first day of the calendar quarter after the date of the First Non-CLL GAZYVA FDA Approval that U.S. gross sales of GAZYVA within any consecutive 12 month period have reached $150.0 million.
Second GAZYVA Threshold Date means the first day of the calendar quarter after U.S. gross sales of GAZYVA within any consecutive 12 month period have reached $500.0 million. The Second GAZYVA Threshold Date can be achieved regardless of whether GAZYVA has been approved in a non-CLL indication.
Pretax profit sharing formula
Until First GAZYVA Threshold Date
39.0
%
After First GAZYVA Threshold Date until Second GAZYVA Threshold Date
37.5
%
After Second GAZYVA Threshold Date
35.0
%
Revenues from unconsolidated joint business
 
For the Years Ended December 31,
(In millions)
2014
 
2013
 
2012
Biogen Idec’s share of pre-tax profits in the U.S. for RITUXAN and GAZYVA (1)
$
1,114.1

 
$
1,085.2

 
$
1,031.7

Reimbursement of selling and development expenses in the U.S. for RITUXAN
3.0

 
2.1

 
1.6

Revenue on sales in the rest of world for RITUXAN
78.3

 
38.7

 
104.6

Total unconsolidated joint business revenues
$
1,195.4

 
$
1,126.0

 
$
1,137.9

Mechanism for reimbursement, under the amended agreement amounts payable
 
 
 
 
 
Rates should Sobi exercise
its option right(3)
Royalty and Net Revenue Share Rates:
Method
 
Rate prior to 1st
commercial sale in
the Sobi Territory:
 
Base Rate following
1st commercial sale in
the Sobi Territory:
 
Rate during the
Reimbursement
Period:
Sobi rate to Biogen Idec on net sales in the Sobi Territory
Royalty
 
N/A
 
10 to 12%
 
Base Rate
plus 5%
Biogen Idec rate to Sobi on net sales in the Biogen Idec North America Territory
Royalty
 
2%
 
10 to 12%
 
Base Rate
less 5%
Biogen Idec rate to Sobi on net sales in the Biogen Idec Direct Territory
Royalty
 
2%
 
15 to 17%
 
Base Rate
less 5%
Biogen Idec rate to Sobi on net revenue(1) 
from the Biogen Idec Distributor Territory(2)
Net
Revenue
Share
 
10%
 
50%
 
Base Rate
less 15%
(1)
Net revenue represents Biogen Idec’s pre-tax receipts from third-party distributors, less expenses incurred by Biogen Idec in the conduct of commercialization activities supporting the distributor activities.
(2)
The Biogen Idec Distributor Territory represents Biogen Idec territories where sales are derived utilizing a third-party distributor.
(3)
A credit will be issued to Sobi against its reimbursement of the Opt-in Consideration in an amount equal to the difference in the rate paid by Biogen Idec to Sobi on sales in the Biogen Idec territories for certain periods prior to the first commercial sale in the Sobi Territory versus the rate that otherwise would have been payable on such sales.
Summary of activity related to collaboration with AbbVie Inc.
 
For the Years Ended
December 31,
(In millions)
2014
 
2013
 
2012
Total development expense incurred by the collaboration
$
117.8

 
$
133.4

 
$
128.0

Biogen Idec’s share of development expense reflected within our consolidated statements of income
$
67.4

 
$
71.0

 
$
65.6

Summary of activity related to collaboration with Eisai
 
For the Years Ended
December 31,
(In millions)
2014
 
2013
 
2012
Total development expense incurred by the collaboration
$
57.5

 
$

 
$

Biogen Idec’s share of development expense, excluding upfront and milestone payments, reflected within our consolidated statements of income
$
29.1

 
$

 
$