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TABLE OF CONTENTS *Perspectives from Biogen leadership For the fourth consecutive year, our global colleagues participated in ON THE COVER Biogen's Care Deeply Volunteer Day, which shattered last year's record Inspired by the new Biogen turnout with a 54-percent increase in employee participation. This worldwide logo, the front cover graphic project enables employees to participate in meaningful community service represents the many facets projects and has a beneficial impact in every location where Biogen operates of our citizenship efforts: around the world. More than 3,000 employees from 27 countries took part improving the lives of patients, in more than 150 projects in 2014. Throughout this report we've showcased protecting the environment Care Deeply Volunteer Day initiatives from around the world. and bettering the community through STEM education and Just look for the icon to find these stories. Letter from Leadership For Biogen and the patients we serve, 2014 was a year of great accomplishments. We expanded our leadership in multiple sclerosis, introduced the first new advances for hemophilia in nearly two decades and, in conjunction with commercial and academic partners, continued to develop one of the most robust pipelines in the industry. The same intellectual discipline and rigor that drives our science is reflected in our corporate citizenship. Our efforts include improving patient access and health outcomes while strengthening our commitment to environmental sustainability, philanthropy, employee development and community improvement. "We have effectively neutralized all the carbon emissions associated with our business, demonstrating continued leadership in protecting the environment." We made significant progress in all of these areas – but perhaps most notably, Biogen this year achieved carbon neutrality. That means we have effectively neutralized all the carbon emissions associated with our business, demonstrating continued leadership in protecting the environment. We were able to reach this milestone by continuing to invest in the sustainable innovations that have allowed us to reduce our operational carbon emissions intensity by 70 percent since 2006. We also funded renewable energy and carbon offset projects to cover the remaining emissions sources, which included internal operations, purchased electricity, employee commuting and business travel, and suppliers of products and services. We carefully chose these offset efforts, which include wind, hemophilia treatments is a serious public health solar and low-impact hydroelectric projects throughout the and humanitarian issue. To address this challenge, United States and Denmark, and low-impact hydroelectric we pledged, along with collaborator Swedish Orphan power in Switzerland – as well as landfill gas projects to Biovitrum AB (Sobi), to donate up to 1 billion international provide energy in Massachusetts, New York and Utah − units of clotting factor over the next 10 years to places where many of our employees live and work.
humanitarian aid programs in the developing world.
Inside our own walls we strive to make Biogen an inclusive place to work and thrive. In 2014, we launched "Inside our own walls we strive to make Biogen an inclusive place to work a global initiative to elevate our company's commitment and thrive. to diversity and inclusion. We developed new programs to prepare more women for leadership roles and expanded Beyond our environmental focus, Biogen is also working to our Employee Resource Networks that celebrate the many make a difference in the lives of patients, thinking beyond backgrounds that make up our Biogen community. the therapies that we pioneer and produce to consider the We listened to employees who expressed the need for whole person. We support patients and their caregivers with greater work-life balance and, in response, introduced a range of best-in-class services and programs to help with a year-end shutdown of the company and an employee the informational, emotional and logistical considerations sabbatical program. that are part of living with disease. Philanthropy also continues to serve as a centerpiece for We also help patients and their families address the our global corporate social responsibility efforts. The Biogen financial impact of treatment. In 2014, we provided financial Foundation made strides in building a global network to assistance valued at more than $1 billion in the form of free expand our commitment to science, technology, engineering drug and insurance copayment support, infusion assistance and mathematics (STEM) education programming worldwide and charitable contributions.
with new and ongoing signature partnerships, while we also expanded our grants programs globally and increased Sometimes, ensuring access requires bold initiatives. investment in our pioneering Community Lab program. In many developing countries, the lack of access to A portion of our investment in carbon neutrality also • We received multiple accolades for being a great supports Solar 4R Schools, an organization which uses place to work, earning a perfect score of 100 on solar technology as a hands-on, interactive education tool the Human Rights Campaign Corporate Equality to cultivate a new generation of clean energy leaders.
Index and inclusion on "best places to work" lists around the globe, including Germany, Italy, Portugal, Switzerland, United Kingdom and the United States. "We topped the Newsweek list of Top Green Companies in the World 2015. Our dedicated approach to global corporate citizenship " is a source of pride for all Biogen employees. Together We are increasingly recognized by respected entities. we work to meet the best interests of society and our In the past year: communities and improve outcomes for people living with serious diseases. • Biogen was named biotech industry leader on the prestigious Dow Jones Sustainability World Index, At Biogen, we are truly committed to what counts.
and we made the Dow Jones North America Index for the fifth consecutive year. - George A. Scangos, Ph.D. • In June, we topped the Newsweek list of Chief Executive Officer "Top Green Companies in the World 2015." • In early 2015, based on our 2014 performance, we were named the world's most sustainable company by sustainability research firm, Corporate Knights. • We were recognized by CR Magazine on its 100 Best Corporate Citizens List. About BIOGEN At Biogen, we measure success by our impact on the patients we serve. Each day we ask ourselves one simple question: Have we truly made a difference in the lives of patients? BIOGEN AT A GLANCE Employees worldwide (approximately) As of December 31, 2014 In 2014, Biogen provided $1 billion in financial assistance to patients in the form of free drug, drug copay assistance, infusion assistance and Revenues in Billions Women on Biogen board of directors *This number includes free drug assistance, calculated as the Wholesale Acquisition Cost (WAC), which is in line with current industry reporting standards.
GOALS AND PERFORMANCE Emissions Intensity Goal: Actively engage in at least one collaborative Goal: Increase the percentage of U.S. research initiative with a leading academic institution multiple sclerosis (MS) patients who go through on an ongoing basis, year over year. our Patient Services program year over year Progress: Achieved for 2014 (seven active partnerships) Progress: Increase of 17 percentage points from *Biogen has neutralized the carbon footprint associated with our business throughout our value chain through greenhouse gas emissions reductions and offsets. Intensity measures and goals are based on the amount of resources used or greenhouse gas emissions per dollar of revenue from our 2006 baseline. Additionally, Biogen achieved and has maintained virtually zero waste to landfill for our manufacturing waste from our owned and operated facilities since early 2012.
ABOUT OUR COMPANY Biogen is one of the world's leading biotechnology companies, with a focus on developing therapies for neurodegenerative, autoimmune and hematologic Recent Significant External Recognition disorders. Founded in 1978, our work in biologics and small-molecule drug discovery has led to the world's most extensive portfolio of MS therapies Biotech industry leader. and innovative new treatments for hemophilia patients. Our experience, capabilities and passion for innovation Fifth consecutive year. have enabled us to build a pipeline and develop advanced research programs that include exploration of potential candidates for serious and difficult-to- Named as the world's most sustainable company treat neurodegenerative diseases and fibrotic and by research firm, Corporate Knights. non-malignant blood disorders. We are committed to research that uncovers the Named number one in the world on 2015 Green Rankings. underlying biology of complex diseases. Our focus is on illnesses with few, if any, treatment options. Named number 64 on the CR Magazine 100 Best Corporate Citizens list. Biogen is listed on the Global Select Market of the NASDAQ Stock Market under the symbol BIIB. In 2014, we changed our legal name from Biogen Received perfect score of 100, earning the title of Idec to Biogen. Our global headquarters in Cambridge, Best Places to Work. Mass., is also home to our research operations and small scale manufacturing facility, with an international Named number 13 on the top 100 companies to work headquarters in Zug, Switzerland, and world-class for in Massachusetts. manufacturing facilities in Research Triangle Park (RTP), N.C., and Hillerød, Denmark. We offer therapies globally through direct affiliate presence in more than Life Sciences Award Winner – Public Company Category. 30 countries and a network of distribution partners in more than 50 additional countries. A list of our global locations can be found Named number 11 on the Business Insider/PayScale Annual Survey. Germany, Italy, Portugal, Switzerland, United Kingdom. *Great Place to Work® is a global research and consulting institute.
OUR MARKETED THERAPIES As of June 2015 Visit our for more detailed information on our therapies.
Indication Overview (In United States) Control and prevention of bleeding episodes, perioperative management and routine prophylaxis [Coagulation Factor IX in adults and children with hemophilia B.
(Recombinant), Fc Fusion Protein] Relapsing forms of MS.
Control and prevention of bleeding episodes, perioperative management and routine prophylaxis [Antihemophilic Factor in adults and children with hemophilia A. (Recombinant), Fc Fusion Protein] Improved walking in adult MS patients who have walking disability.
(prolonged-release fampridine tablets) Previously untreated chronic lymphocytic leukemia, designed to improve upon the efficacy of RITUXAN.
Relapsing forms of MS.
(peginterferon beta-1a) As single agent or in combination with other therapies for certain types of non-Hodgkin's lymphoma (NHL). In combination with other therapies for rheumatoid arthritis. In combination with other therapies for CD20-positive chronic lymphocytic leukemia.
Relapsing forms of MS.
(dimethyl fumarate) Relapsing forms of MS.
*Marketed by Genetech/Roche FINANCIAL PERFORMANCE (As of December 31, 2014) See our or more detailed information on our financial performance.
Operating Results ($ in millions, except EPS) GAAP Net Income Attributable to Biogen GAAP Diluted Earnings Per Share (EPS) Financial Position ($ in millions) Total Liabilities Total Shareholders' Equity R&D Investments (featured in annual reports) Citizenship & Our commitment to corporate citizenship and environmental sustainability reflects the best interests of our patients, our stakeholders and the communities we serve. It is a commitment that is built into our culture of excellence and part of what we do each and every day. In developing our 2014 Corporate Citizenship Report, 2013 and early 2014. We plan to repeat this process we have followed the Global Reporting Initiative (GRI) approximately every two years. This strategic exercise Sustainability Reporting Guidelines, known as "G4." helped us identify and rank the issues that we believe The GRI Guidelines represent the most widely adopted are most critical to the continued success of our company voluntary sustainability reporting standard in the world.
and that matter most to a wide variety of our stakeholders — both internal and external. These issues are summarized As part of our commitment to corporate transparency, on Page discussed throughout this report. and in keeping with the spirit of the G4 Guidelines, For a more detailed discussion of the materiality we conducted a full "materiality assessment" in late assessment process, please see Page BIOGEN VALUE CHAIN & MATERIAL ISSUES Stakeholder Engagement Patient Health Outcomes Patient Health Outcomes Environmental Impacts Access to Treatment GLOBAL MEDICAL MANUFACTURING TRANSPORTATION COMMUNICATIONS, Ethics Governance Citizenship Philanthropy Talent Attraction, Retention & Development Our employees and their commitment to patients are at the core of everything we do at Biogen and make possible the results we achieve throughout our entire value chain. OUR MOST MATERIAL ISSUES (for detail on how we determined our material issues, please see Page Research and Development (R&D) and Innovation As a company committed to visionary science and new therapies for diseases with inadequate or no treatment options, our investment in R&D distinguishes Biogen. Within neurology, immunology and non-malignant hematology, we continue to apply our decades of expertise to focus on some of the most challenging disease areas, while building on our expertise to identify adjacencies where the science leads us. This focused approach and commitment to R&D, where we annually invest approximately 20 percent of our revenue, aims at meeting the critical needs of patients and society as we work to reduce the overall burden of debilitating diseases.
Patient Health Outcomes Our company's success is ultimately determined by the health outcomes realized by the patients on our therapies, including benefits of the therapies and the services we provide, managing potential side effects, product safety and product security. The benefits of our treatments may encompass improved physical and cognitive function, easier compliance with therapy and a better quality and more productive life. This helps determine the willingness of physicians to prescribe our treatments and impacts the decisions payers must make in covering drugs, especially newly introduced therapies. Product security includes safeguards against counterfeit, adulterated and compromised drugs.
Access to Treatment/Promoting Product Societal Value One of the more complex tasks we navigate as a company and an industry is helping to ensure that the people whose lives may be improved by our therapies have access to them. This involves considerations such as obtaining regulatory approvals across many jurisdictions, weighing options for compassionate use of therapies prior to approval, ensuring that prescribers are aware of their options, setting product pricing that balances citizenship and fiscal prudence, demonstrating product efficacy and societal value to payers, offering patient financial assistance and helping patients find the healthcare providers they need. Ethics/Governance Sound corporate governance is essential to sustaining our growth and success as a company and to maintaining the trust and confidence of our stakeholders. This extends throughout all aspects of our business, from the way we conduct clinical trials and compensate investigators to the way we market and protect our products, allocate corporate resources and select suppliers. All Biogen employees must comply with our Code of Business Conduct, Values in Action, which guides decision-making throughout our organization. external internal/external OUR MOST MATERIAL ISSUES (continued) Stakeholder Engagement Engaging with a wide range of stakeholders is essential to our business. We work collaboratively to understand patient needs, conduct research, protect the environment, improve the pharmaceutical supply chain and work with government regulators globally. We also strive to understand the needs and desires of our employees and the challenges faced by physicians and caregivers. Citizenship & Philanthropy As a company dedicated to improving lives, Biogen and many of its stakeholders view community, philanthropic and volunteer activities as a core component of our business. Not only is it the right thing to do as a good corporate citizen, but it is essential to the long-term viability of our business and industry, as it engages our employees, strengthens our communities and helps nurture the science and technology leaders of the future.
Environmental Impacts As a company with significant manufacturing capacity, Biogen uses a considerable amount of energy, water and materials in the production of our products. We have incorporated environmental sustainability as a cultural imperative across the company and are dedicated to reducing the intensity of our natural resource use even as we experience significant growth worldwide. Intellectual Property Continued innovation and access to treatments, and fair reimbursement for innovative products, depend in large part on certainty around intellectual property protections, which are necessary to ensure that we are able to make the long-term investments that biopharmaceutical innovation external internal/external Improving LIVES Biogen's commitment to improving patients' lives goes beyond scientific research and development. We believe it is equally important to listen to and interact with patients, advocacy organizations and healthcare societies in order to gain insights into unmet needs. We apply similar rigor and passion to improving lives in the community. Research & Development: Going After the Hard Problems Biogen's approach to research and development (R&D) is designed for maximum impact in our core areas of expertise: neurology, immunology and hematology. When I arrived at the company in 2011, I worked with our CEO and others to help streamline and focus our R&D portfolio where we could make the most difference in the lives of patients. We've built a unique scientific expertise, and we seek to apply that understanding to develop new and improved therapies for areas of unmet medical need. What that means is, we go after the hard problems. Biogen's research tackles diseases where there's currently inadequate treatment, or no treatment – the kinds of diagnoses that drastically impact the day-to-day lives of patients and their caregivers. But, science has shown us that there's potential for another way, a better way, that can have a substantial impact on helping people achieve a significantly higher "We reinvest about 20 percent of our annual revenues right back into R&D each year." quality of life by slowing the progression of these seemingly intractable diseases, decreasing the burden of disease and making it easier to comply with treatment regimens. To develop therapies with the potential to make a real impact on improving lives, we reinvest about 20 percent of our annual revenues right back into R&D each year. This investment is among the highest in the industry and supports developing new research technologies, as well as building the right team to continue to grow the innovation pipeline and advance patient care.
RESEARCH AND DEVELOPMENT: GOING AFTER THE HARD PROBLEMS D o u g W i l l i a m s , P h . D .
Logical Adjacencies: Strategically Building for Success Building the Pipeline: For years, Biogen has been a leader in the treatment Fueled by Talent, Technology and Data Insights of MS and, more recently, we have introduced pioneering Our potential for success is directly impacted by the talent therapies for managing hemophilia. As we expand our and tools available to push forward toward new discoveries. portfolio, we are building upon what we learn from In 2014, we focused on expanding our in-house R&D strength developing the therapies that are successfully introduced, by welcoming five leading researchers to the Biogen team: as well as those compounds that, for one reason or another, do not make it all the way through our pipeline.
• Dr. Olivier Danos joined Biogen from Kadmon Pharmaceuticals to lead the company's gene therapy As we expand beyond MS, we focus on areas of logical research group, a team dedicated to identifying and adjacencies. For example, while MS and Alzheimer's developing new technologies for gene transfer and disease (AD) may seem like completely different conditions, genome engineering. Dr. Danos is a true pioneer in the both are neurodegenerative disorders. Both diseases field. We believe that his expertise will help accelerate typically advance slowly, but inexorably. The basic principles our development of a world-class gene therapy platform of how we're treating relapsing forms of MS are not that that combines our growing internal capabilities with different than what we're trying to do in AD. We are trying collaborations with leading research organizations to slow down the progression of these diseases to give the across the globe.
patient a much longer period of time during which they can retain a significant amount of function – whether that is physical or cognitive function or both.
To track our advances over the long R&D timeline, we have established the Biogen Value Pipeline Index (VPI), United States (Washington, D.C.) an internal tool that allows us to measure the quality of development and progress toward new solutions we've The Children's Inn at the National achieved on an annual basis. VPI helps us to quantify Institutes of Health in Washington, D.C. clinical, biological and safety risks to determine if programs provides pediatric patients and their are generating valuable results that help us reduce risk, families with an environment where improve success rates and advance toward our targets. kids can be kids and where families Ultimately, in any given year, we can evaluate how much can be together. Biogen volunteers decorated hundreds of sugar cookies value our work is creating for shareholders, patients and and assembled "thoughtful treasure" the company as a whole. This data supports informed goody bags with toys for children and decision-making about advancing research from one families staying at the Inn.
phase to the next and is used to communicate the value of our current pipeline to our board of directors.
RESEARCH AND DEVELOPMENT: GOING AFTER THE HARD PROBLEMS D o u g W i l l i a m s , P h . D .
• Dr. Donald R. Johns joined Biogen from Novartis Institutes for BioMedical Research as vice president to lead Biogen's amyotrophic lateral sclerosis (ALS) COLLABORATING Innovation Hub (ALS iHub), a new unit established FOR SUCCESS in 2014 dedicated to accelerating the discovery and development of novel therapies for ALS by integrating research with clinical development. Dr. Johns' experience Goal: Actively engage in at least one as a clinician and researcher, his dedication to patients collaborative research initiative with and his successful track record make him a perfect a leading academic institution on addition to help us in our efforts to bring critical therapies an ongoing basis, year over year. to ALS patients as quickly and efficiently as possible.
In 2014, we were engaged in seven active academic collaborations • Dr. Christopher Henderson joined Biogen as vice president, Neurology Research, and is advancing our (see description on following pages). work to identify and accelerate the development of new product candidates for treating neurological diseases. He previously worked for Columbia University where he co-founded the Center for Motor Neuron Biology and While deepening our own bench is critical, we also recognize Disease and the Columbia Stem Cell Initiative.
that the challenges of taking on unmet medical needs are bigger than any one company. Making an impact and finding • Dr. Richard Ransohoff joined Biogen as senior research the next big breakthrough requires innovative collaboration fellow, Neuroimmunology, and will work closely with between research institutions, the public and private sectors Dr. Henderson. Dr. Ransohoff comes to Biogen from and across industries. the Cleveland Clinic, where he served as director of the Neuroinflammation Research Center in the Department Our partnerships with other research leaders such as AbbVie, of Neurosciences of the Lerner Research Institute; Eisai, Biofocus, Isis Pharmaceuticals, Sangamo BioSciences professor of Molecular Medicine at the Lerner College and Swedish Orphan Biovitrum AB are helping produce of Medicine at Case Western Reserve University; advances in treatment and expand our footprint to help and staff neurologist at the Mellen Center for more patients around the globe. Multiple Sclerosis Treatment and Research. One of the principles that I think sets Biogen apart from • Dr. Rick Rudick joined Biogen to lead our new many others in our industry is the way we partner with Value-Based Medicine (VBM) Group. Learn more academia. Not only do we provide funding to leading research about Dr. Rudick and VBM on Page.
institutions, as many companies do, but our researchers RESEARCH AND DEVELOPMENT: GOING AFTER THE HARD PROBLEMS D o u g W i l l i a m s , P h . D .
work hand in hand with theirs to further understand the and methods, such as sensor platforms and bi-analytical underlying causes and potential treatments for complex tools, to better characterize the symptoms of MS and to track diseases. This unique approach helps ensure a diversity and measure, in real time, factors that may influence disease of ideas, perspectives and, ultimately, data, to tackle severity in different patients. This is something we have not challenges that a single institution might not be able been able to achieve in the past.
With new, innovative approaches like these, we believe the path forward is promising for improving the lives of patients "With new, innovative approaches like these, we believe the path forward is promising for with unmet medical needs. • improving the lives of patients with unmet medical needs. to solve on its own. We have set a goal to have at least one of these collaborations active on an ongoing basis, year over year. These collaborations are funded, in part, by Biogen's R&D innovation fund, which in 2014 invested $20 million from our R&D budget.
In Hillerød, Biogen hosted the area's Annual Volunteer Meeting, where more At its core, R&D is an information-driven capability. than 80 people discussed volunteering Along with our investments in talent, we've worked efforts in the local community. Part of to reshape our information technology (IT) organization the time donated by Biogen was spent to play a more central role in our core business. with Helping Mothers, an organization In particular, newly established global data and digital that supports vulnerable pregnant health technology groups are helping us to gather more mothers and families by providing robust data sets to drive new treatment and clinical counseling on different program development insights. My colleague, and Biogen's new initiatives. Biogen also helped out Executive Vice President and Chief Information Officer, at the Red Cross Shop by cleaning, Andi Karaboutis, offers further insight on this exciting decorating and sorting sales items. new approach in a following section. Looking at information technology in new ways has opened the door to opportunities with seemingly unlikely partners. Through an innovative collaboration with Google [X] Life Sciences, we are pioneering the use of novel technologies COLLABORATING FOR SUCCESS While our own research teams are making significant Amicus Therapeutics – To further our capability to produce scientific advancements in-house, we recognize that orally-administered treatments, like we did with the launch no one has a monopoly on innovation. We value the of TECFIDERA in 2013, we entered into an agreement with insights and expertise of other companies and academic Amicus Therapeutics to use their research platform and institutions and believe that they are necessary to expertise in discovering and developing small molecule complement our internal expertise. At our core, we know drugs to reduce alpha-synuclein accumulation, a hallmark that by bringing together many different disciplines to of Parkinson's disease pathology.
tackle complex challenges we have the potential to advance medicine more rapidly and effectively.
We value the insights and expertise of other companies and academic institutions Collaborations between Biogen scientists and academic and believe that they are necessary to researchers are critical to maintaining a vibrant research and development program, and we continuously work to complement our internal expertise. establish new partnerships and consortia. BioFocus – To advance our immunology efforts, Industry Collaborations we signed a three-year collaboration agreement with Collaborative relationships allow us to leverage BioFocus, a subsidiary of Galapagos NV, to identify and complementary skills, technologies and areas of expertise. validate novel targets in scleroderma, an autoimmune Through these relationships, we accelerate and enhance disease that causes hardening of the skin and that can how we discover, develop and deliver our therapies to also impact organs. patients. In many instances we have collaborated on multiple projects with partners, often over many years, Eisai – In early 2014, we entered into an agreement with as we work to sustain collaborations that are successful Eisai, Inc., to jointly develop and commercialize two of their and mutually beneficial.
candidates for Alzheimer's disease, which have the potential to reduce Aß plaques that form in the brains of patients, AbbVie Biotherapeutics – We have continued our as well as to slow the formation of new plaques, potentially partnership with AbbVie to advance new therapies improving symptoms and suppressing disease progression.
for relapsing-remitting MS. In June 2014, we jointly announced positive top-line results from our Phase III Isis Pharmaceuticals – In 2013, we expanded our DECIDE clinical trial, where daclizumab high yield process relationship with Isis Pharmaceuticals to leverage antisense (DAC HYP) demonstrated superiority over interferon technology in advancing the treatment of neurological beta-1a in reducing patients' relapse rates.
diseases, including myotonic dystrophy type 1 (the most common form of muscular dystrophy in adults) and spinal muscular atrophy (SMA) in children. In 2014, one of our SMA drug candidates moved into Phase III trials. COLLABORATING FOR SUCCESS Quintiles – In 2014, we launched a multiyear At the end of 2013, Biogen announced that it had entered collaboration with Quintiles, a provider of into an agreement with Samsung Bioepis to commercialize biopharmaceutical development and commercial anti-TNF biosimilar product candidates in Europe, including outsourcing services, to increase the efficiency of our biosimilars for widely used therapies to treat conditions such clinical trials. Quintiles will work with Biogen on the design, as rheumatoid arthritis, psoriasis and Crohn's disease. planning and execution or our Phase II-IV studies as well as select Phase I studies. Biogen will leverage Quintiles' technology and systems across our growing portfolio. "We are delighted to collaborate with Biogen to expand our hemophilia gene therapy program also to hemophilia A and to Samsung Bioepis – Since 2012 Samsung Biologics and Biogen have collaborated through Samsung Bioepis Co., advance both programs towards clinical Ltd., a joint venture to develop, manufacture and market testing, always keeping in mind the safety biosimilars. The strategic collaboration between the two and benefit of the patients. companies has enabled Samsung Bioepis to build the capabilities needed to develop high-quality biosimilars. – Luigi Naldini, director, TIGET Sangamo BioSciences – Biogen is exploring gene-editing therapies for serious, inherited hematological diseases through its collaboration with Sangamo BioSciences. A Donation to Transform the The agreement enables Biogen to enhance our expertise Model of Hemophilia Care in non-malignant hematology by leveraging Sangamo's proprietary genome-editing technology platform to It is our goal to improve the standard of care develop treatments targeting sickle cell disease for people with hemophilia worldwide. To (SCD) and beta-thalassemia.
help achieve this, Biogen, Swedish Orphan Biovitrum (Sobi), and the World Federation Telethon Institute for Gene Therapy (TIGET) – In early of Hemophilia are working to transform the 2015, Biogen entered into a global collaboration with humanitarian aid model for people with TIGET to jointly develop gene therapies for the treatment hemophilia in the developing world. In 2014, of hemophilia A and B. The partnership aims to leverage Biogen and Sobi announced their intent to TIGET's advanced lentiviral gene transfer technology, produce one billion international units (IUs) an approach that could one day lead to a single-dose, of clotting factor therapy for humanitarian lasting therapy for people with hemophilia.
use. signed to help enable a predictable, sustained humanitarian supply of factor therapy with a goal to improve the quality of care and outcomes for people with hemophilia living in developing countries.
COLLABORATING FOR SUCCESS Academic Collaborations Collaborations between Biogen scientists and academic researchers are critical to maintaining a vibrant research New ALS Gene Identified and development program, and we continuously work to establish new relationships and consortia. In collaboration with Columbia University Medical Center and Hudson Alpha Institute for Biotechnology, Columbia University – Biogen and Columbia University we have identified a new gene that is associated Medical Center have formed a $30 million strategic with sporadic ALS. Our findings were published in alliance to conduct genetics discovery research on ebruary 2015. The gene, TBK1, plays a the underlying causes of disease and to identify key role at the intersection of two cellular pathways, new treatment approaches. As part of this strategic inflammation and autophagy, that previously have alliance, a sequencing and analysis facility and shared been implicated in the disease. doctoral program will be established at Columbia to support collaborative genetics studies. This multiyear This publication is an important achievement for collaboration enables Biogen and Columbia to Biogen, and the discovery is another step forward investigate the genomes of patients showing unusual for the ALS community in better understanding this treatment responses or unique disease presentations disease. This is the type of finding we intended when and to explore the connections among genes, pathways we launched this collaboration less than three years and disease processes.
ago, and since that time we have screened the largest number of ALS patients in a single study. Massachusetts Institute of Technology/Whitehead Institute for Biomedical Research – We are working The speed with which we achieved this result in close collaboration with Whitehead researchers to speaks to the power of our approach to focused pioneer novel ways to improve human health through collaborations with true pioneers in the academic basic biomedical research in the areas of immunology, community. neurology, developmental biology, genetics and genomics. We plan to execute four to five three-year projects starting with epigenetics and immunology. Harvard Medical School/Rubin Laboratory – We are working with Harvard researchers on exciting early-stage projects. These include mapping human protein interactions to yield new insights, pathways and targets COLLABORATING FOR SUCCESS for a wide range of diseases; modeling system genetics to identify new pathways for Parkinson's disease; and investigating methods of action for spinal muscular atrophy (SMA), ALS and Parkinson's disease BIOGEN ACQUIRES in conjunction with the Rubin Laboratory.
CONVERGENCE ALS Consortium – Biogen and several leading academic research centers have formed a consortium In early 2015, Biogen acquired dedicated to identifying new approaches to treating U.K.-based Convergence Pharmaceuticals, ALS. The consortium includes representatives from a clinical stage biopharmaceutical Yale University, Harvard University, Columbia University and The Rockefeller University. company with a focus on developing treatments for neuropathic pain. Duke University/Hudson Alpha Institute Biogen intends to leverage Convergence's for Biotechnology – In coordination with the expertise in chronic pain research ALS Consortium, we worked with Duke University and and clinical development to advance Hudson Alpha Institute for Biotechnology, two premier new therapies for neuropathic pain. research institutions, to sequence the genomes of nearly 3,000 patients with ALS. This project, Convergence's lead candidate, which screened the largest number of ALS patients CNV1014802, which is in Phase II in a single study, identified a new gene associated development, has demonstrated proof with ALS (see Page of concept for treating pain associated with lumbosacral radiculopathy, Lawrence Berkeley National Lab/University of more commonly known as sciatica, Connecticut Health Center – Biogen, the Berkeley Lab and has potential applicability in and UCONN Health Center are investigating RNA binding protein sequencing to identify essential functional several other neuropathic pain states. modules between ribonucleoprotein complexes (RBPs) and RNA. We are using this data to explore interactions relevant to neurodegeneration and, we hope, determine its potential cause.
COLLABORATING FOR SUCCESS Scleroderma Consortium – Biogen's immunology group created this consortium to investigate the underlying pathogenesis of scleroderma. Investigators from Tufts University, Yale University, University of Pennsylvania, University of Utrecht and the University of Glasgow — all representing different fields of immunology — will coordinate their research activities and collaborate with Biogen scientists to identify new targets with potential for therapeutic intervention.
University of Edinburgh – In 2013, Biogen and University of Edinburgh agreed to a three-year collaboration to study MS and motor neuron disease, then identify drug compounds that could potentially be used as Technology & Business Solutions: Beyond the Traditional IT Team When I was approached about moving from my role as Dell's Chief Information Officer to run Technology and Business Solutions for Biogen, one piece of the company's strategy in particular helped convince me to make the leap: Technology innovation is at the core of our long-term growth strategy. For many companies, IT is primarily an operational support function. At Biogen we are taking IT to another level to drive real business solutions and advance the way computer technology is applied in the biopharma industry. Traditionally, the pharmaceutical industry is very good at accumulating data. What we are looking to do at Biogen is not only find more sources of information, but better connect the dots between that data to reveal correlations that have the potential to help with faster drug discovery, better design of clinical trials and improved outcomes for patients.
"Through powerful search capabilities and integrated perspectives, we're able to discover and expose trends and insights that help Biogen scientists get to a better result faster." In 2014, we reorganized our approach to using information to better capitalize on that potential, creating three interconnected global teams.
• Recognizing that data is a core asset of our company, our new global data function is charged with mining that information to enhance our approach to developing groundbreaking therapeutic advances. Through powerful search capabilities and integrated perspectives, TECHNOLOGY & BUSINESS SOLUTIONS: BEYOND THE TRADITIONAL IT TEAM Ad r i a n a Ka r a b o u t i s we're able to discover and expose trends and insights and research through the collection of real-world data that help Biogen scientists get to a better result faster. from which to glean new insights to both help individual Moving forward, we believe this will elevate our ability to patients and advance toward new discoveries. identify disease targets, design better clinical trials and understand how patients are faring on our therapies. • The chief information office, which oversees the more traditional aspects of IT, is charged with managing and • Our digital health and technology team is seeking ways maintaining the advanced technologies and systems to put cutting edge devices in the hands of patients and that enable our researchers and their supporting teams care providers to both improve therapy delivery and to to think and innovate. And, we're doing it in a way that monitor and track patient response. Whether through helps support Biogen's ambitious environmental goals. wearables or more personalized medicine solutions, Initiatives such as an increased Cloud presence and our aim is to transform the delivery of clinical care right-sizing global server capacity save energy and reduce carbon emissions.
At Biogen, Technology and Business Solutions sits squarely at the cross-section of R&D and Patient Health Outcomes. With the pace of digital innovation continuing to accelerate, our technology team's ability to adapt, learn and grow is mission-critical for supporting new advances in United States (Massachusetts) human health. • Beautifying the front entrance, building planters and benches, dressing up a once dreary sidewalk and painting a mural – these were some of the many projects Biogen volunteers completed for The Everett Boys and Girls Club. The upgrade pays tribute to an organization that works daily to address significant community needs. These needs include school time opportunities, extracurricular sports and a place where teens receive genuine support and guidance from their peers and adults. Innovation in Our Pipeline Cutting-edge science can change the course of devastating Early- and Mid-stage Product Candidates diseases. Patients worldwide benefit every day from our Aducanumab (BIIB037) – For Alzheimer's disease. industry-leading MS products and our new treatments for hemophilia. Through our strong product pipeline, Anti-BDCA2 – For systemic lupus erythematosus. we are also working hard to bring new therapies to market for patients with MS, Alzheimer's disease and other areas Anti-CD40 Ligand – For systemic lupus erythematosus. of high unmet need.
Developed in collaboration with UCB, Inc. Anti-LINGO-1 (BIIB033) – For multiple sclerosis. Below is a summary of the therapies in our pipeline. For more details see the section Anti-TWEAK – For lupus nephritis. of our website.
BAN2401 (Humanized anti-amyloid beta mab) – For Alzheimer's disease. Developed in collaboration with Eisai Co., Ltd. Daclizumab High-Yield Process (DAC HYP) – For relapsing-remitting multiple sclerosis. Developed in BIIB061 (Oral re-myelination) – For multiple sclerosis. collaboration with AbbVie Biotherapeutics. CNV1014802 – For Trigeminal Neuralgia. Acquired in ISIS-SMNrx – For spinal muscular atrophy. Developed in acquisition of Convergence Pharmaceuticals. collaboration with Isis Pharmaceuticals. E2609 (BACE1 Inhibitor) – For Alzheimer's disease. Natalizumab – For secondary progressive multiple Developed in collaboration with Eisai Co., Ltd. sclerosis. ISIS-DMPKRX – For myotonic dystrophy, type 1. Obinutuzumab (GA101) – For diffuse large B-cell Developed in collaboration with Isis Pharmaceuticals. lymphoma (DLBCL) and indolent non-Hodgkin's lymphoma, front-line and refractory. Currently Natalizumab – For Acute Ischemic Stroke. approved as GAZYVA for chronic lymphocytic leukemia (CLL). We collaborate on obinutuzumab in Neublastin (BG00010) – For neuropathic pain. the United States with Genentech, Inc., a wholly-owned STX-100 – For idiopathic pulmonary fibrosis. member of the Roche Group. The Roche Group and its sub-licensees maintain sole responsibility for the development, manufacturing and commercialization of obinutuzumab. A Single Mission: Improving Patient Health Everything we do at Biogen boils down to one common goal: to improve the lives of patients. That is the very essence of our company. And we come at that challenge from many different avenues. At the most basic level, the clinical effectiveness of our therapies is paramount to our success and to the health outcomes patients can expect to achieve. In our industry, this has traditionally been the domain of the R&D organization. But since coming to Biogen in 2010, I have seen and aided in a paradigm shift toward more fully integrating other functions into the drug development process, including IT, market access and patient advocacy group engagement. This more holistic approach gives us important information that we use to design better clinical trials and helps ensure that when our therapies receive regulatory approval, they are made available to as many patients as possible as a first-line reimbursable treatment. Serving the "Whole" Patient As core as clinical effectiveness is to our mission, it is essential that we look well beyond just the patient's condition and that we see the whole person. That's why we have put so much emphasis on building world-class Patient Services and why we're developing programs and apps that are designed to help patients lead better lives. When a patient is prescribed one of our therapies, they can benefit from Patient Services programs where available, which facilitates patients getting started on treatments and complying with drug regimens so they have better overall outcomes. We help them navigate the informational, emotional and logistical considerations that accompany living with a chronic disease. A SINGLE MISSION: IMPROVING PATIENT HEALTH To ny K i n g s l ey Where local regulations permit, we seek to ensure that We invest a significant amount of resources in helping every patient who is prescribed a Biogen therapy avails patients anticipate, understand, track and manage side themselves of our Patient Services process. In the United effects so that they remain compliant with their regimen States, where we're able to uniformly measure this, and have a better health experience. we have set a goal to increase the percentage of patients who go through the process year over year. While it may The sooner a patient starts on a therapy, the more likely not be possible to hit that 100 percent mark, we want to they are to have better outcomes. This is especially true get as close as possible. for progressive diseases like MS. Through a variety of consultative activities, our Patient Services group helps shorten the time before they can start experiencing the Onboarding for Better Outcomes potential benefits of the therapy. Goal: For each patient who is prescribed a Biogen product, we work to ensure that as many as possible go through our Patient Services program. Percentage of U.S. MS patients going through State of MS Report the Biogen Patient Services program: As part of Biogen's relentless commitment to improve the lives of patients – an effort that extends well beyond medication – we commissioned a landmark study in 2014 in conjunction with The State of MS Consortium, an international For any therapy to perform at its full potential, patients steering committee. The study focused on a key must comply with their treatment regimen. While that aspect of MS care: communication between patients may sound simplistic, it can be a real issue – one that our and their doctors. Conducted online by Harris Poll, onboarding process addresses. For example, several of our vealed that, despite the products are self-administered by injection, and the patient generally positive assessment of current practice needs to know how and when to do that and overcome in MS, certain aspects of communication between reservations they might have about injecting themselves. doctors and patients could be better. Our hope We offer training through a 24-hour toll-free number, is that this new data will prompt crucial discussion as well as an email alert service so that patients know about how physicians and patients speak together when to dose. Medications may also have unpleasant side about symptoms – especially hidden ones – effects, especially at the onset of treatment. which can help neurologists know if they're helping change patients' lives for the better. A SINGLE MISSION: IMPROVING PATIENT HEALTH To ny K i n g s l ey Taking a Value-Based Approach as often as they like. This helps patients track their health One of the most important developments in 2014 and better prepare for conversations with their doctors. was the launch of our Value-Based Medicine (VBM) The initial response to this free tool has been very positive, Group, which seeks to enhance individualized exceeding targets for number of downloads and garnering treatment outcomes through emerging technology, a high rate of return users. clinical innovation and continuous learning for the benefit of the entire MS community. The goal of VBM The Micro8 tool for patients with hemophilia and their is to capitalize on new and emerging technology to caregivers was developed in partnership with MicroHealth, collect and better synthesize information to improve our an innovative digital community exclusively for people with knowledge of the impacts of the disease and therapy.
hemophilia. Micro8 helps connect patients, clinicians, caregivers, families and friends − even the rest of the We are fortunate to have welcomed Dr. Rick Rudick aboard hemophilia community – to share relevant information. to lead this team. Dr. Rudick comes to Biogen from the Micro8 provides several options for tracking infusions Cleveland Clinic where he served as director of the Mellen and patient progress via text, online and mobile. Center for Multiple Sclerosis Treatment and Research for nearly 30 years. He has been a valued partner of the company for more than two decades and played key roles in our clinical trials for AVONEX and TYSABRI. His vision, expertise and passion bolsters our efforts to create real-world, practical solutions to empower better decision-making and improve the way people live with MS. Under Dr. Rudick's leadership we aim to help physicians In 2014, Biogen launched the MS Visionaries and patients make more evidence-based, individualized program, an initiative designed to highlight treatment decisions with the goal of improving MS care.
outstanding individuals who have developed programs, tools or services to benefit the MS Applying Technology in New Ways community. Profiles of these innovators were We learn so much from the patients we serve – and we featured on Yahoo Health, a digital magazine are using these insights to develop and deliver innovative covering modern health and wellness topics. services that complement our therapies and help patients Over the course of a month, Yahoo Health live their lives to the fullest. To this end we introduced featured weekly stories of MS Visionaries as several new technology-based tools in 2014. well as inspiring personal accounts of people living with relapsing forms of MS who have The MySidekick™ smart device app was launched in been treated with a Biogen therapy.
November 2014 and allows patients and their caregivers to easily record mood, energy level, activities and sensations A SINGLE MISSION: IMPROVING PATIENT HEALTH To ny K i n g s l ey We also conducted a joint study in 2014 with industry partner, PatientsLikeMe, to assess the feasibility of using a consumer wearable device to monitor activity among people with MS in a real-world setting. Results from the study established a potential framework for the rapid and effective deployment of activity tracking devices to MS "Through the passion of our people and the data and tools that we are putting in their hands, Biogen is helping to redefine the art of the possible in meeting unmet In February 2015, Biogen hosted its medical needs." first MS Hackathon with the external technology community. The challenge patients and subsequent data collection. If an individual for Hack MS was to develop potential chooses to share logs with their care team, then doctors solutions for people living with MS or nurses can use this information to support clinical to manage stress. Twenty-two teams undertook the challenge over a 48-hour period. First, second and third place I am personally very excited and encouraged by the strides we've made in 2014 in paving the way for better health prizes were awarded, ranging from outcomes for patients. What's more is that this is just $5,000 to $20,000, to help winners the tip of the iceberg. Through the passion of our people kick-start their ideas. Biogen will use and the data and tools that we are putting in their hands, insights gleaned from the winners and Biogen is helping to redefine the art of the possible in all the presenting teams to further refine meeting unmet medical needs. • and innovate programs that serve the MS community. ADVOCACY ORGANIZATIONS ENGAGEMENT A key component of our mission to improve the We are leveraging these findings to enhance our disease lives of patients is engaging with patient advocacy awareness initiatives, expand support of patient education organizations, which provide a critical link to real-world to underserved populations and infuse a stronger community patient experiences. Armed with a deep understanding focus into our MS programs. In 2015, we will complete a of what it is like to live with chronic conditions such similar survey in Europe.
as MS, hemophilia or one of the conditions currently under research by Biogen scientists, patient advocacy In addition to the following examples of our work to improve organizations help us better understand unmet patient outcomes for people living with MS and people living with needs, shape our discovery and development programs hemophilia, Biogen also works to support those facing many and enhance our treatments and patient experiences. diseases of high unmet need as represented by our pipeline therapeutic areas of interest (e.g. Alzheimer's disease, ALS and Spinal Muscular Atrophy). Through engagements We have formed collaborations with with patient advocacy organizations early in our development organizations in every country where we process, we work collaboratively to define clinically operate and help them advance their own meaningful endpoints, capture important data across the missions through sponsorship and support natural history of disease and share information about our for a wide range of initiatives. Biogen has a strong history of working with patient organizations to amplify the patient's voice and support equitable access to treatment. We have formed collaborations with organizations in every country where we operate and help them advance their own United States (North Carolina) missions through sponsorship and support for a wide Biogen and Habitat for Humanity both range of initiatives. These have included core funding, strive to achieve the vision of making disease awareness programs, fundraising and a positive difference in the lives of support for organizational development.
others. Our volunteers partnered with Habitat in North Carolina In 2014, Biogen commissioned a third-party research erecting frames, roofing, painting and firm to survey key MS advocacy groups in the United landscaping to help build homes that States to help us assess our advocacy relations efforts. benefit local families in need. The survey provided rich insights into how our company and our programs are perceived by the MS community and whether they appropriately address the needs of patients. ADVOCACY ORGANIZATIONS ENGAGEMENT clinical programs. All of these initiatives support the overall with updates in their native language on emerging therapies goal of working together to develop treatments that are and strategies for MS symptom management to help them meaningful to patients.
make more informed decisions about their treatment. For additional information on how we collaborate with Multiple Sclerosis International Federation (MSIF) – advocacy organizations, please also see Public Policy Helping to Build Advocacy Capacity and Community Support on Page Access to Treatment on Page Awareness Internationally Biogen has enjoyed a strong relationship with MSIF for years, MS Awareness Week – Raising Public Awareness and we've broadened our partnership to enhance our impact Biogen employees in the United States celebrated MS in the MS community on a global scale. We provide financial Awareness Week 2014 with a variety of activities, including support to key MSIF initiatives like the Atlas of MS Database live educational programs, community events and – the only up-to-date online source of information on the fundraising campaigns to support key patient advocacy worldwide epidemiology of MS and the global accessibility organizations. To kick off the week, Biogen sponsored the of resources for people with MS – and a new MSIF capacity National MS Society's Taking Steps Initiative–Climb to the building program aimed at supporting and strengthening Top event in New York and other cities, including Boston. local patient advocacy organizations in Latin America and During the New York event, more than 1,500 participants the Middle East.
climbed 66 flights to the top of Rockefeller Center to raise awareness and funds for the nonprofit's crucial work in Biogen recognizes the need to support MS the community. We also supported a series of live patient education for underserved populations. education programs hosted by the MS Foundation in Savannah, Ga., Dallas, Texas and San Diego, Calif.
Biogen has participated in MSIF's global "World MS Day" campaign since its inception in 2009. In 2014, we donated Multiple Sclerosis Association of America Hispanic space on our website to promote the day, and our affiliates Outreach Program – Reaching an Underserved Community undertook a wide range of activities to raise awareness For non-English speakers living with MS in the United about MS worldwide and support MS advocacy groups States, obtaining accurate information and counsel for locally around the world.
managing MS can be a challenge. Recognizing the need to support MS education for underserved populations, MS Underserved Populations Initiative (MS-UP) Biogen has provided support to the Multiple Sclerosis Biogen is committed to finding ways – through support Association of America for a new Hispanic Outreach of research, educational resources and patient advocacy Program. Through 14 Spanish-language patient education organizations – to address health problems in ethnically programs in Spanish-speaking communities throughout diverse communities. As part of our vision and commitment the United States, the program aims to provide participants ADVOCACY ORGANIZATIONS ENGAGEMENT to bring innovative solutions to the MS patients and communities we serve, MS-UP's cross-functional team Oceans of Hope – was formed to help improve outcomes among the racial and Educating and Empowering ethnic minority populations in the United States. We aim to the MS Community achieve this through data generation and external education in partnership with a steering committee representing top In 2014, Biogen signed on as principal experts in the field, as well as collaborations with advocacy sponsor and official partner of the Sailing organizations already working in the areas of MS and Sclerosis Foundation's (SSF) minority health.
project. This multiyear, global campaign is designed to use sailing as a means to European Multiple Sclerosis Platform (EMSP) educate and empower the MS community, The EMSP is the umbrella organization for 39 MS societies changing perceptions of what it means to from 34 European countries representing more than live with the disease and demonstrating the 700,000 persons with MS. Biogen has supported the benefits of an active lifestyle. EMSP for many years and collaborates on various projects The Oceans of Hope project was pioneered and initiatives to support the European MS community. by Dr. Mikkel Anthonisen, Founder of Key projects include: SSF and a MS specialist at Copenhagen University Hospital, Rigshospitalet. Starting • The European Register for Multiple Sclerosis Project in June, Dr. Anthonisen and several other (EUReMS): Aimed at addressing the lack of data on crew members began stopping in multiple treatment and care for people with MS, the EUReMS harbors in Europe, North America, South project has developed a groundbreaking tool for America and Australia to build strong bonds accessing, comparing and enhancing the status of with the global MS community. Each port people living with MS throughout the European Union. day was celebrated with an interactive event, After more than four years of data collection from MS giving people living with MS the opportunity registries across Europe, the EMSP presented the first to learn to sail and participate as crew. results of the EUReMS research studies at the ACTRIMS-ECTRIMS Meeting in September 2014 and released a comprehensive report to the public in October 2014. The data collected and analyzed through this pioneering initiative can be leveraged to address inequalities in accessing treatment, care and employment across European markets.
ADVOCACY ORGANIZATIONS ENGAGEMENT • Believe & Achieve: In 2014, we joined the EMSP's Biogen Germany – Supporting Patient Activities Believe & Achieve program, an initiative designed to Biogen Germany collaborates with several different help young people with MS gain access to employment chapters of the German MS Society (DMSG) to support and professional development opportunities. As part patient events, patient journals and other activities such of the program, we launched our MS in the Workplace as World MS Day via sponsorships and advertising.
Internship Program and accepted our first intern in our Italy affiliate in early 2015. For six to 12 months, Biogen Italy – Empowering People Living with MS participants in the paid internship program will gain Biogen Italy supported the National Observatory on career experience and attend training sessions to Women Health (Onda) with an unconditioned grant develop their transferable skills and employability. to ideate and run an Italian MS awareness campaign. We are piloting the program in the United Kingdom The campaign addressed the difficulties of a life with and Belgium as well, and, if successful, it will be rolled MS and focused on evidence that dreams don't stop out across Europe.
for MS, because patients keep looking at their future with strength and positivity. • MS Nurse Professional: A modular, online training curriculum to support the evolving role, competencies and leadership of European MS Nurses.
Other examples of support for MS patient advocacy organizations around the globe include: Biogen Australia – Raising Funds and Awareness The Church City Mission in Oslo runs the Biogen Australia participated in MS Walk and Bekkelagshjemmet retirement home. MS Gong Ride events in 2014 to raise awareness A group of Biogen volunteers spent the and to help raise funds for people living with MS. day painting the garden pavilion and one We also participated in the ALS ice bucket challenge of the home's living rooms to provide and raised over $7,000. a change in scenery for the residents. Another group of Biogen volunteers Biogen BeLux (Belgium and Luxembourg) – visited a center run by the Blue Cross for World MS Day in Focus drug addicted people to help serve food, Biogen BeLux employees cleared their agenda on participate in motivating conversations May 28, 2014 – World MS Day – to spend the entire day and assist with checking identification with MS patients and their families at the animal park cards for entry into the facility. Paira Daiza, the location of an MS awareness event that was organized by the local MS patient associations. ADVOCACY ORGANIZATIONS ENGAGEMENT Biogen Poland – Collaboration to Improve Access In 2014, Biogen Poland supported the creation of the report "Socio-economic consequences of multiple sclerosis in Poland". It was a joint initiative of the Lazarski University and patient advocacy group, Urszula Jaworska's Foundation. The goal of the report was to collect data from public institutions financing diagnosis, treatment and care about MS patients and United States (Massachusetts) costs of lost productivity to society. Biogen supported The Dimock Center, which works to benefit Boston's Biogen Portugal – Literary Prize in MS inner city neighborhoods of Roxbury, to Raise Awareness Dorchester and Jamaica Plain. Biogen Portugal partnered with the Portuguese The center provides vital services MS Patient Association (SPEM) on a project called to over 40,000 families annually "Literary Prize in MS". Over the year, SPEM made within the Boston community. presentations about MS at schools throughout the Biogen upgraded the center by country and challenged students from fifth and sixth painting and planting new garden beds. grades to write stories or poems about the topic. With the support of the Ministry of Education and National Institute for Rehabilitation, this project Biogen Switzerland – Every Step Counts! raised awareness about MS and how it affects society. Biogen Switzerland supports the work of the Swiss Multiple Sclerosis Society with its participation in two Biogen Sweden – Patient Power and major events: World MS Day and msrun® at the Swiss City MS Disease Awareness Marathon Lucerne, which is held every year as a mark of Biogen Sweden has collaborated with the Swedish solidarity for people with MS and their families. patient organization, Neuro Sweden, for several years. The collaboration in 2014 included a seminar for Biogen UK – Focus on Disease Awareness and Access healthcare policymakers and decision-makers about Biogen UK has worked with the UK MS Society and the new treatment guidelines being developed for MS, MS Trust for years to support efforts to improve patients' as well as an online educational program to support, understanding of their disease and provide support, educate and empower people living with MS.
information and education, as well as improve access to appropriate treatments and services. ADVOCACY ORGANIZATIONS ENGAGEMENT European Federation of Neurological Associations (EFNA) The EFNA is an umbrella group representing pan-European EURORDIS (Rare Diseases Europe) is a nongovernmental neurology patient organizations that work to empower alliance representing 678 rare disease patient organizations. patient neurology organizations and build their capacity.
It works to build a strong community of people living with a range of rare illnesses and advocates for their collective needs. These organizations represent 30 million patients Following a wide-reaching patient survey conducted who are affected by rare diseases across 63 countries with support from Biogen in 2014, EFNA published a book summarizing brain and chronic pain disorders, patients' experiences and best practices from a number Biogen has a long-standing relationship with EURORDIS of European countries on how to address patients' on a number of projects. In 2014, Biogen supported the unmet needs.
Rare Connect project, a tool for sharing information among people living with a rare disease. This is a noncommercial, • European Parliament Interest Group on Brain, Mind, online platform that patients can use to support one and Pain: In 2014, Biogen, along with other corporate another across borders and languages, as well as accessing partners, provided support to EFNA and the Pain publications from medical experts and patient organizations. Alliance Europe to form an interest group on brain, mind and pain. The objective of the interest group My Life, Our Future offers genetic testing, is to raise political awareness of the impact of or genotyping, to people with hemophilia. neurological and chronic pain disorders in Europe and encourage policy solutions aiming to encourage research, increase access to innovative treatment, My Life, Our Future – With Every Yes, Progress improve quality of life and decrease stigma.
After a successful pilot program completed in early 2013, Biogen joined leaders in hemophilia advocacy and treatment The European Patients Forum (EPF) to announce the national rollout of My Life, Our Future: The EPF is an umbrella organization working with patient Genotyping for Progress in Hemophilia, which offers genetic organizations to advocate, support and empower them in testing, or genotyping, to people with hemophilia in the their health policy objectives across Europe. EPF works to United States. My Life, Our Future is a partnership with the ensure equitable access to treatments and equal care for National Hemophilia Foundation, American Thrombosis and all. Members of the EPF represent a wide range of patients Hemostasis Network and Bloodworks Northwest.
and therapy areas, allowing coordination and exchange of best practices at both European and national levels. Biogen has supported the EPF for a number of years and provided grants to support EPF´s independent capacity building work. ADVOCACY ORGANIZATIONS ENGAGEMENT My Life, Our Future is halfway to its overall goal. SMA and Newborn Screening Currently, more than 65 hemophilia treatment centers SMA is a hereditary, neurodegenerative disease that are participating in the program and more than 2,500 causes weakness and wasting of the voluntary muscles people have enrolled. Once 5,000 people contribute to in infants and children. There are several types of SMA, the repository, scientists and researchers at academic with infantile-onset SMA being the leading cause of institutions or companies will be able to apply to study genetically related death in children under two years of age. the samples and data, potentially leading to improvements in treatment and care. To date, more than 80 percent Biogen works with SMA patient advocacy groups and experts of participants have contributed their samples to the in the field of newborn screening to develop and validate tests that can be used to identify babies with SMA as soon as possible following birth. These tests are able to identify World Hemophilia Day – Shining a Light on the 95 percent of all babies genetically predisposed to developing Hemophilia Community SMA, including those with the infantile onset form of the Every April, Biogen celebrates World Hemophilia Day condition, the most severe type. Timely identification of SMA to increase awareness of hemophilia and other inherited through screening is especially important as we believe that bleeding disorders. In 2014, our efforts included launching the earlier treatment is started the greater benefit it may have.
a public service announcement that aired on Boston's local television affiliates, raising awareness via a social We also are working to support the development and media hemophilia campaign and registering dozens of expansion of an SMA patient registry that is expected Biogen participants for the New England Hemophilia to further the healthcare, patient and research community's Association's 2014 Hemophilia Walk. understanding of this disease. The registry should be a rich source of data that will help inform the research efforts In 2015, Biogen expanded its World Hemophilia Day of the entire biomedical community.
awareness activities by collaborating with hemophilia advocacy groups to illuminate more than 15 prominent Alzheimer's Disease landmarks red throughout the United States, Based on extrapolations o including Boston's Zakim Bridge and Prudential Tower, y 2050 there will be about 70-80 million Chicago's Wrigley Building, New Orleans' Mercedes- individuals worldwide living with Alzheimer's disease. Benz Superdome and Denver's Coors Field. The lightings The impact of this disease on individuals and families coincided with hemophilia community events organized throughout the world is staggering. Biogen is currently by Biogen with hemophilia chapter organizations. working to advance several therapeutic options in this The events occurred in a dozen locations across the disease space. By supporting and participating in many country, and recognized the day with educational global Alzheimer's disease organizations and coalitions, and family-friendly activities.
we ensure that progress on our clinical development programs are well communicated to the Alzheimer's community. ADVOCACY ORGANIZATIONS ENGAGEMENT Notably, Biogen participates in the Alzheimer's Association Research Roundtable, a consortium of senior scientists from the pharmaceutical, biotechnology, diagnostics, imaging and cognitive testing industries, and senior staff and advisors from the Association. Our scientists and medical experts participate in the Roundtable to contribute to and benefit from the state-of-the-field scientific discourse, debate and information sharing in order to advance the field of Alzheimer's research and Our scientists and medical experts contribute to and benefit from the state-of-the-field scientific discourse, debate and information sharing in order to advance the field of Alzheimer's research. ALS Biogen, in partnership with the ALS Association, is currently funding ongoing natural history studies at several universities in order to further understand the most common genetic cause of ALS, in preparation for clinical trials in those whose disease is affected by the C9orf72 gene. Upon the successful completion of these studies, we will have carefully defined important elements of ALS due to the C9orf72 gene and established the clinical data and biomarkers needed to successfully plan a clinical trial for C9orf72 ALS patients.
Our commitment to improving patients' lives goes beyond the treatments we develop – we also work to support patients and their caregivers with a range of best-in-class services. For example, we've created a number of programs under the mbrella to help people with MS understand and access the resources they may need along their journey with MS. This includes our programs focused on helping patients and their families understand their insurance coverage and ensure cost is not a barrier to treatment through our comprehensive financial assistance solutions. In 2014, Biogen provided nearly $1 billion in financial assistance in the form of free drug, drug copay assistance, infusion assistance and charitable contributions. For patients in the hemophilia community, we offer the and programs. Our aim is to provide comprehensive assistance programs to find the most cost effective means for the community to access ALPROLIX and ELOCTATE. We are offering a variety of assistance programs based on the needs of people with hemophilia and shaped by community input, including a copay program, financial counseling, as well as free drug and free trial programs.
We are committed to providing personalized assistance for each individual affected by hemophilia. Everyone who calls into MyALPROLIX or MyELOCTATE is partnered with a coordinator to provide one-on-one support to help tailor resources to meet patient needs. Additionally, everyone on the MyALPROLIX and MyELOCTATE teams has had the opportunity to meet face to face with hemophilia community members.
PATIENT SAFET Y AND TRANSPARENCY Patient Safety During Clinical Trials Clinical research is essential to the development of our therapies. It gives doctors and researchers valuable data on the benefits, side effects and possible applications of new drugs, as well as on potential new combinations, doses and indications. One of the highest priorities at Biogen is to protect the health and safety of the patients participating in our clinical trials and to help them understand the potential benefits and risks. In 2014, more than 22,000 patients in multiple countries participated in clinical trials sponsored by Biogen. Please see our website for more information on how we conduct .
Patient Communications For any patient facing a serious disease, the decision to seek treatment must be an informed one. Biogen is committed to openly communicating the benefits and risks of therapies to help healthcare professionals and patients make the best choices. In addition to strictly adhering to all laws and regulations regarding product labeling and communications materials, we also ensure that healthcare professionals have open access to information about our therapies. Please see our website for more information on Improving Lives in Our Communities At Biogen, we "Care Deeply" for those around us. We work not only to serve the best interests of our patients, but also to serve as model neighbors in the communities where Aiding the Fight Against Ebola we operate. This commitment is brought to life each day by our employees who passionately support causes that In March 2015, Biogen donated interferon beta-1a enhance community vitality around the world.
as part of a pilot study in Ebola virus-infected patients in Guinea, West Africa. As a company focused on advancing life-changing science, we are committed to inspiring the next generation Interferon beta-1a, sold by Biogen under the trade of innovators through effective STEM (science, technology, name AVONEX, is a known antiviral that has shown engineering, math) education programs that cultivate to be effective against other viruses, such as a healthy curiosity in young learners. Through these hepatitis C. While it has never been studied in efforts, we empower students not only to consider exciting humans with Ebola, nonclinical data of the effect of careers in science but also to contribute to society in the drug in Ebola-infected monkeys is available from innovative ways.
a study at the National Institutes of Health in 2014. The clinical trial protocol for testing interferon As a community-focused company, we are also committed beta-1a in Ebola-infected patients was developed to lending our neighbors a hand when they need it most. jointly by an independent research team and During natural disasters and emergency situations, approved by Biogen's Interferon Clinical Trial we quickly mobilize support and deliver humanitarian Review Committee. aid to help communities rebuild and recover.
Biogen secured interferon beta-1a pre-filled syringes, Caring Deeply Around the World subcutaneous needles, half-dose devices and sharps For the fourth consecutive year, our global colleagues containers, and put together customized directions participated in Biogen's Care Deeply Volunteer Day, for the handling, storage and administration of the which shattered last year's record turnout with drug in both English and French (the official language a 54-percent increase in employee participation. This worldwide project enables employees to participate in meaningful community service projects and has a One year after the largest outbreak of Ebola was first beneficial impact in every location where Biogen operates identified, a trial is underway to learn if interferon around the world. More than 3,000 employees from beta-1a has the potential to save the lives of those 27 countries took part in more than 150 projects in stricken with the deadly virus.
2014. Throughout this report we've showcased Care Deeply Day initiatives from around the world. Biogen Foundation The Biogen Foundation is focused on strengthening communities and enhancing STEM education through innovative, interactive hands-on programming. We believe that a solid foundation in STEM education opens doors to opportunity for all students, and we are committed to A team of Biogen volunteers spent time helping make high-quality STEM experiences accessible with MS patients visiting Parque Europa around the world. in Madrid. The park hosts replicas of some of the most important historic In support of this vision, we continued to expand the monuments found in major European cities. Our volunteers and patients spent global reach of our programs and engaged in new time getting to know each other, and long-term initiatives to ensure our investments in patients let their disease fade into the STEM have a sustained impact. These efforts are engaging more young people in STEM disciplines, helping to build a pipeline of smart, enthusiastic scientists some of who may one day become Biogen employees. After a successful launch of our international grants program in 2013, we've continued to provide allowing us to build a diverse pipeline of future scientists. financial support to international organizations with We also support professional development for STEM a proven track record of supporting excellent science educators to ensure they have the tools and resources education programming. In 2014, the Foundation necessary to inspire and teach future innovators and leaders. awarded $7 million in grants worldwide, which includes $800,000 in matching gifts through our Employee Notable STEM initiatives in 2014: Matching Gifts program. Teach For America – A $5 million grant to the largest grant awarded by the Biogen Foundation to These efforts are helping to build a date, will address disparities in STEM education and help pipeline of smart, enthusiastic scientists fill STEM teaching positions in low-income neighborhoods. some of who may one day become The grant will be spread over five years to support the Biogen employees. nonprofit's recruiting, training and professional development opportunities for teachers who focus on STEM education. The programs we support are designed to improve Students and teachers will also have opportunities to engage opportunities and outcomes for students of all with Biogen employees at our Community Labs (see story on backgrounds and at all phases of their education, Pageoughout the year. The World Biotech Tour – With support from the Biogen Community Lab – The Biogen Community Lab is the Foundation, the vel longest-running, hands-on corporate science lab in the to 12 leading science centers and museums worldwide nation, engaging middle and high school students with for three-day science festivals focused on the theme hands-on, real-world science. Over 25,000 students in of biotechnology. Formed in partnership with the Greater Boston have experienced real laboratory science Association of Science-Technology Centers, the WBT through the Community Lab.
will run from 2015 to 2017 with the goal of engaging young people in science and technology through hands-on In October 2014, Biogen opened a second Community Lab learning opportunities. Science centers participating in at our RTP facility in North Carolina. Modeled on the success the WBT will provide a culturally unique visitor experience of our Cambridge program, the Community Lab expansion through several activities developed and hosted at each continues Biogen's mission to inspire the next generation science center.
of STEM leaders through hands-on learning. Swiss Science Center Technorama – With approximately The Community Lab is a catalyst for students to learn 65,000 student visitors per year, the firsthand that there are countless careers in science ys a vital role in encouraging interest and biotechnology. Biogen and the Community Lab have and enthusiasm for science and technology at an early partnered with different programs to help promote career age. To further these efforts, the Biogen Foundation has committed to providing more than $625,000 over the course of three years to support Technorama's hands-on learning lab, as well as the development of new workshops and training for teachers. This marks the Foundation's largest grant ever awarded outside of the United States.
North Carolina Museum of Natural Sciences, Biogen volunteers helped the Raleigh, N.C. – Through support from the Biogen Mother Mary Joseph Center and three other community organizations that focus on supporting children. as able to triple the number of classes Our volunteers conducted renovation offered through its Micro World Investigate Lab. In 2014, projects, painted and upgraded this program engaged more than 31,000 visitors and the centers. They also helped raise students in lab-based activities. The Foundation's support awareness around healthcare habits made it possible for approximately 800 students from through educational talks tailored for underserved school districts and afterschool programs the kids, ultimately benefitting a total to participate in these hands-on programs, providing of 195 children. transportation for many of these students.
exploration in biotechnology. Programs include Kinder-Universität Zürich – For the fifth straight year, Biogen has been the exclusive biotechnology sponsor and North Carolina Museum of Natural Sciences. on's University of Zurich), a program that provides lab-based curricula to Supporting Science Education — The Biogen Foundation third through sixth graders. This program, which serves launched the Ignite the Power of STEM Competitive Grants about 700 children per year, makes lab learning fun as Program in 2013 to support science education programs it introduces students to such topics as microscope use, in public and charter elementary, middle and high climate change and electricity.
schools in Massachusetts. The program was expanded to North Carolina in 2014. Ignite the Power of STEM Strong Communities – The Biogen Foundation also grants are designed to enable teachers to bring new, provides grants for innovative programs that address exciting hands-on science experiences to their students, vital community needs, including general education, promote science literacy in innovative ways, encourage human services, and culture and the arts. Partners include underserved youth with the potential to pursue science as a career and create excitement about STEM topics within the classroom. The Foundation awarded more than $200,000 to more than 50 schools in Massachusetts and North Carolina in 2014. U.S. Employee Matching Biomedical Science Careers Program (BSCP) – For years, Gifts Program the Biogen Foundation has been a strong supporter of the BSCP, supporting professional development In 2014, our Employee Matching Gifts and educational programming and providing a HOPE program grew 45 percent, awarding nearly Scholarship award to a deserving student in need of $800,000 in employee matching gifts to financial assistance. The goal of the BSCP is to increase more than 580 organizations across the the number of under-represented minorities in the health United States. The program allows Biogen professions and the biomedical sciences. Many BSCP employees to double their donations to the students have gone on to pursue successful careers in organizations they care about most – healthcare and biomedical sciences, including two former these range from the National MS Society, BSCP students who are now Biogen employees. One is a to camps for children with serious illnesses, scientist with our molecular discovery team and the other to disaster relief efforts around the world. is a senior research analyst with our public policy and government affairs group. ADVANCING MEDICAL EDUCATION Biogen continuously strives for new ways to increase disease awareness, improve patient access to care and help patients with unmet medical needs. To that end, we offer educational grants, fellowships and other support to academic institutions, hospitals and community-based healthcare organizations in the therapeutic areas we serve. In 2014, Biogen contributed approximately $10 million to independent medical education programs for healthcare providers, including physicians, nurses and pharmacists. All medical education programs are developed and administered completely independent of any direction or influence from Biogen, in accordance with our company's internal policies and relevant external regulations. Biogen collaborated with five different organizations around Australia. Our The Biogen MS Clinical Fellowship Program volunteer efforts helped organizations has supported promising clinical fellows such as OzHarvest, Royal Society who are helping to lead the effort to care for the Prevention of Cruelty to Animals, Meals on Wheels, Community First, for MS patients and find new treatments and Clean Up Australia. We fed the for this serious disease since 2006. hungry, distributed supplies to the disadvantaged, helped support the Fellowship Programs – In 2014 we donated more prevention of animal cruelty and than $1.9 million to fellowship programs, including the worked to clean up area parks and MS Clinical Fellowship Program, Hemophilia Fellowship Program, Global MS Registries Research Fellowship Program and R&D Fellowship Program. For the 2014-2015 academic year, Biogen awarded 16 grants totaling more than $1.3 million to top universities and academic institutions across the United States to support MS Clinical Fellowships. Once grants are awarded, the selection and placement of the MS Clinical Fellows are at the discretion of the recipient institution. The Biogen MS Clinical Fellowship Program has supported promising clinical fellows who are helping to lead the effort to care for MS patients and find new treatments for this serious disease since 2006. Please visit our website for more information about ou Rethinking As Biogen grows, we are rethinking the way we use resources like water, energy and materials in an effort to reduce or freeze our environmental footprint, even as we expand our product portfolio and manufacturing throughput. By applying innovation to everything we do, we are confident that we can continue to improve the lives of patients in a sustainable and responsible manner. Making the Leap to a Net Zero Carbon Footprint Being a responsible corporate citizen is at the very heart of how we operate as a company. Respect for the environment and our communities is deeply rooted in our company culture, and it plays out in the high standards we use to guide our conduct. We want to be a company for which our employees are proud to work, and we empower them to be innovators who find and implement the solutions behind our many achievements in the area of environmental sustainability. "Biogen is now a carbon neutral company. We have effectively neutralized all the carbon emissions associated with our business. I consider it both my personal and executive responsibility to help shape Biogen's sustainability vision, strategy and goals and to guide our efforts to reduce our companywide environmental footprint. We challenge ourselves to think of new paradigms and rethink the way we use resources, with a particular focus on water, energy and waste.
One of the most exciting developments to come out of 2014 from a sustainability perspective is that Biogen is now a carbon neutral company. That means we have reduced and then effectively neutralized all the carbon emissions associated with our business.
We were able to achieve this Net Zero Carbon Footprint milestone by continuing to invest in sustainable innovation internally and by funding external renewable energy and offset projects to zero balance the rest of the carbon emissions associated with our business value chain. This includes emissions from our own operations, employee commuting and business travel, purchased electricity, upstream suppliers and downstream business activities. After years of cutting emissions by increasing manufacturing and building efficiency and generating much of our own power with our co-generation plant that uses cleaner burning natural gas, we decided to take this next major step.
MAKING THE LEAP TO A NET ZERO CARBON FOOTPRINT J o h n C ox Getting to and maintaining a Net Zero Carbon Footprint We intend to meet our water and carbon goals through is no small undertaking. But the enormous strides we ongoing manufacturing innovation that will enable us have made – and will continue to make – in shrinking to dramatically increase the throughput of our therapy our operational footprint and working with suppliers production with little or no increase in carbon emissions to do the same, made it easier.
In fact, this remarkable achievement is really just Zeroing in on Our Target an extension of our overall commitment to corporate Carbon emissions are linked to global climate change, citizenship and environmental sustainability. Since 2006, which has, in turn, been linked to extreme weather events we have reduced our operational carbon emissions and drought. The World Health Organization says that climate change may also affect access to sufficient food and water and the stability of the healthcare infrastructure, "We realized that we had the opportunity thus impacting human health. As a company focused on to make an immediate impact by doing improving the lives of patients, these are issues that we our part to curb carbon emissions. It was must take into consideration as we plan for the future.
the right thing to do and the right time to do it — for society, for the environment In 2014, we identified that we weren't that far from reaching a Net Zero Carbon Footprint, thanks to the improvements and for our business." we've made in curbing our operational emissions over time. We realized that we had the opportunity to make intensity by 70 percent and water use intensity by an immediate impact by doing our part to curb carbon 72 percent. And we have set a goal to reduce them both emissions. It was the right thing to do and the right time to by 80 percent by 2020, using 2006 as our baseline. do it – for society, for the environment and for our business.
That means we'll be using about the same amount of water and emitting the same amount of carbon from our First we worked with respected third parties to determine operations as we did in 2006, despite real and anticipated our current footprint. When we look at the carbon emissions business growth. We expect this will make it easier and associated with Biogen, both inside and outside our walls, less costly to continue to neutralize our emissions and we see that the majority comes from our suppliers. The rest maintain our Net Zero Carbon Footprint. We are also is split between our operations and employee commuting committed to achieving zero manufacturing waste-to- and business travel. landfill status in the facilities that we own and operate. Then we neutralized these emissions by investing in credible, certified projects that were already putting cleaner energy onto the grid. These investments support wind, solar, MAKING THE LEAP TO A NET ZERO CARBON FOOTPRINT J o h n C ox landfill gas-to-energy and low impact hydroelectric power So where do we go from zero? We plan to continue to projects in the United States and Europe. We applied drive the use of natural resources out of our system and, our usual high standards using very specific criteria as a result, make it easier to maintain our Net Zero Carbon to ensure each project had a current and meaningful Footprint. And we will do it using the three-pronged approach impact. Additionally, a portion of our purchases support that got us here – driving sustainability internally, working Solar 4R Schools, which use solar technology as a hands- with our suppliers and investing in cleaner energy projects. on, interactive education tool to cultivate a new generation I am confident that we will be successful. • of clean energy leaders. "Without the passionate efforts of Biogen employees across the globe, these great achievements would not have been possible. Before declaring that that our carbon footprint is net zero, we took painstaking steps, again with a third-party auditor, to assure that this was indeed true, based on the internationally accepted standard. Owning it Throughout the Organization Without the passionate efforts of Biogen employees across the globe, these great achievements would not have been possible. While we have a dedicated Environmental Health Safety and Sustainability (EHS+S) organization, environmental responsibility is everyone's job. To drive that point home, each year we nominate and recognize employees for their extraordinary actions to support our EHS+S goals. But only employees whose primary job function is not EHS+S are eligible to win. It is this culture of ownership and innovation that's gotten us this far along our sustainability journey. ENVIRONMENTAL STRATEGY AND MANAGEMENT Efficient Buildings Efficient Manufacturing our carbon footprint carbon emissions through internal remaining carbon footprint by funding innovation and supplier engagement credible renewable energy projects Net Zero Carbon Footprint determined according to Biogen's Carbon Neutral Methodology, assured by ERM CVS based on ISO14064:3 ENVIRONMENTAL STRATEGY AND MANAGEMENT Management and Goals Our impact on the environment factors significantly in These goals are ambitious, but we've cultivated a culture how we view our mission to improve the lives of patients of working fearlessly to measure and address what really and operate as a responsible and sustainable company. counts. We believe our global EHS+S strategy, coupled We carefully manage the way we use resources, striving with innovative manufacturing technologies, will enable us to reduce, mitigate and, in the case of carbon emissions, to reach and maintain these environmental performance neutralize our footprint wherever possible. We focus milestones. For more information on our global EHS+S our efforts where we have the most potential impact: approach and a summary of our strategy and management water use, energy use/carbon emissions and solid waste. In our last Corporate Citizenship Report, we outlined bold We are also pleased to report that Biogen did not have new environmental goals for 2020 tied to these areas. any fines for noncompliance with environmental laws Through innovative management and manufacturing and regulations in 2014. However, we received notice and greener buildings, we've made substantial progress of violations for exceeding a wastewater permit limit in against these targets, which are: one of our RTP facilities and for exceeding a mercury limit in a small amount of water that was poured down • Reducing our water use by 80 percent by 2020 a drain at one of our Cambridge labs. To address these compared to 2006, normalized by revenue.
issues, we implemented additional controls at the RTP site, which were agreed to by the local authority and • Reducing our direct and indirect operational carbon incorporated into our permit conditions, and enhanced emissions by 80 percent by 2020 compared to 2006, communications and training in our Cambridge facility.
normalized by revenue. Manufacturing Innovation Launched in 2014, our Operations Technology and • Setting and achieving the goal of having a Net Zero Innovation Group – a cross-product, cross-functional Carbon Footprint across our value chain by funding group housed within our Pharmaceutical Operations certified renewable energy and carbon offset projects and Technology function – uses a structured innovation to neutralize the balance of our carbon emissions. process that focuses on bringing many Biogen departments This includes emissions remaining from our together to create significant breakthroughs throughout operations plus employee commuting and business travel,purchased electricity, upstream suppliers and downstream business activities. • Achieving zero manufacturing waste-to-landfill status at all major owned locations. ENVIRONMENTAL STRATEGY AND MANAGEMENT While it's intuitive to think that producing more products requires more water and energy, Biogen is challenging this paradigm. A key focus of this newly formed group is driving manufacturing innovation that has the potential to dramatically multiply our drug throughput and increase our manufacturing capacity with little or no increase in the amount of natural resources used.
By increasing the capacity of our existing operations, manufacturing innovation reduces the need for new facilities, as well as the attendant business risk. Increasing productivity at this level requires a smarter approach to biology, where more of the active ingredients for our therapies can be extracted from the cultures in which they are grown. The process of separating components of mixtures is known as chromatography. Cells in our bioreactors create byproducts that require water to purify. We are using technologies that allow us to run chromatography at higher concentrations, which significantly decreases our water use at this stage of production. This not only cuts down on our water use, but also reduces the energy required to move and purify the large amounts of water it takes to create safe, high-quality biopharmaceutical products. Our efforts to increase productivity also have implications for downstream manufacturing processes and our bottom line. By increasing the capacity of our existing operations, manufacturing innovation reduces the need for new facilities, as well as the attendant business risk. ENVIRONMENTAL STRATEGY AND MANAGEMENT EHS+S AWARDS Regional Sustainability Award Winners: Our annual global EHS+S Awards recognize - Johan Bruun, Engineer II, Process (Hillerød) non-EHS+S employees who go above and beyond for eliminating the use of nitrogen gas in our water their core duties to help us achieve our EHS+S purified rinse tanks.
goals. For our most recent set of awards, a team of EHS+S leaders thoroughly evaluated more than - John Kelliher, Senior Engineer III (Cambridge) 100 nominations to arrive at global and regional for multiple sustainability projects including award winners in two categories: Sustainability renovating and completing a fan wall conversion and Health + Safety. of our Building 6 to reduce air demand, resulting in an annual energy cost savings of approximately The Sustainability Award goes to individuals or teams $50,000 per year. who have completed a measurable project or initiative that improves performance of an environmental metric, - Jimmy Smith, Senior Supervisor, Instrumentation such as water, waste or energy. The winners are & Controls (RTP) for developing an innovative new featured below, with the global winner being selected level calibration process for buffer solution holding from the ranks of the regional winners. (Health + Safety tanks, thus reducing water use by 55,000 liters and award winners are featured on Page cutting the time needed to complete this process by 15 percent. Global Sustainability Award Winner: - Our India Affiliate Office's "Green Team" (Virender - Our Italy Affiliate Office's "Green Team" Bhasin, Senior Manager, Affiliate Finance; Gaurav (Silvia Donzelli, HR Partner; Verena Mitterer, Khanna, Senior Associate I, Office Management; Assistant, Office Management; Linda Pizzichini, Davendra Mal Singhvi, Associate Director, Affiliate Senior Administrative Assistant; Alice Sala, Senior Finance) for driving sustainable behaviors in our Administrative Assistant; Antonella Scaldaferri, India operations. This includes reducing energy Administrative Associate) for several sustainability costs by nearly 40 percent, establishing a paper initiatives. Accomplishments include switching recycling system, curbing the use of sealed water to 100 percent renewable energy, launching a bottles in the office, reusing wood fixtures from recycling program, installing "green" printers the old India office in the new office and proposing through the office and executing a additional energy-reduction projects.
"Thinkbeforeprinting.org" campaign. ENVIRONMENTAL STRATEGY AND MANAGEMENT LEED Certification and Sustainable Construction Biogen considers physical infrastructure an important component of our approach to environmental sustainability. Getting to Zero We operate four energy-efficient buildings with Leadership in Energy & Environmental Design (LEED) certification. After identifying innovative ways to reduce our These include two LEED Platinum buildings, one in operational carbon emissions and collaborating Weston, Mass., and one in Cambridge, and two Gold with our suppliers to do the same, we funded certified buildings, including our headquarters in certified renewable energy and carbon offset Cambridge, Mass., and a facility in RTP, N.C.
projects to bring us to a Net Zero Carbon Footprint. In 2015, we will launch sustainable renovation and Specifically, for 2014, we offset the greenhouse gas construction guidelines that aim to speed up the emissions we created internally (Scope 1) by helping selection of sustainable materials and equipment fund a project that uses landfill gas to generate energy for smaller projects involving facilities that we control. in Utah. Our indirect emissions from purchased electricity (Scope 2) were offset by investments that support wind, solar and low-impact hydroelectric Water plays a critical role in many aspects of our projects throughout the United States and Denmark. business. It is used to help make our products, The remaining emissions in our value chain (Scope 3), to sterilize and clean equipment, in our cooling towers, including those associated with employee commuting for irrigation, and elsewhere throughout our office and and business travel, upstream suppliers and manufacturing operations. Because it is so valuable to downstream business activities were neutralized us – and our communities – we focus on ways to reduce by funding projects using landfill gas to generate our dependence on water, recycle more of it, and make energy in Massachusetts and New York, as well sure it adheres to the highest quality and safety standards as projects that fund wind farms in Texas. before being returned back to the environment.
Biogen enlisted credible third-party auditors to assure By completing innovative projects across our operations, our emissions data and our methodology for achieving we've made sure that every drop counts. Projects in our Net Zero Carbon Footprint status. Our Scope 1, recent years have included installing flexible volume Scope 2 and Scope 3 (business travel only) emissions manufacturing processes, HVAC water reclamation were verified b, in accordance with the AA1000 systems, a rainwater-harvesting cistern, clean-in-place Assurance Standard (2008). All other Scope 3 emissions process improvements and upgrades to our cooling towers. data were assured by ERM CVS. Net Zero Carbon Footprint determined according to Biogen's Carbon Neutrality Methodology assured by on ENVIRONMENTAL STRATEGY AND MANAGEMENT Energy Use and Carbon Reductions Developing therapies that improve patients' lives is a fairly energy-intensive process. Paying close attention Status Change Leads to how we use energy and implementing energy-efficient to Innovation strategies and projects have helped us achieve significant energy and carbon emissions reductions. These reductions In 2012 and 2013, we reported that we are driven internally through innovative projects like had achieved zero waste-to-landfill status optimizing our glycol distribution systems and using our (defined as a landfill waste diversion rate own co-generation plant to generate much of the energy for of 100 percent). We subsequently identified our Cambridge campus, using cleaner burning natural gas. that a small amount of non-hazardous waste Materials and Waste – primarily in the form of off-spec inventory In 2014, we achieved a virtually zero manufacturing and unused medication – from one of our waste-to-landfill status* at our owned locations. This is Cambridge facilities was properly disposed in part due to identifying innovative ways to divert from of in a landfill specialized for this purpose. landfills all materials and waste associated with our owned This represented less than 1 percent of our operations, as well as having all of our major operations total waste. This meant that we had achieved located in areas with substantial waste recovery, recycling a virtually zero-waste-to-landfill status* and composting infrastructure. in 2012 and 2013. Our goal is to achieve zero waste-to-landfill status In response to this error, earlier this year going forward at all of the major locations that we control. we implemented an innovative program To do so, we will continue to leverage a suite of projects to "offset" this past waste by arranging that avoid, recycle and compost our waste, as well as use and paying for an equal amount of waste some of it to create or recover energy. This includes proper from local small organizations in Cambridge management and disposal of hazardous waste, adhering to be diverted from landfills. Not only will to both local and international standards and regulations. this help us realize our goal of achieving We're also finding innovative ways to transform some of zero waste to landfill, but it will help build our manufacturing byproducts from hazardous materials awareness among these smaller companies into useful fertilizers and compost.
of how they might reduce their own environmental footprints. *Virtually Zero Waste to Landfill is a designation granted to facilities that have achieved a landfill diversion rate of 98% or greater, by global independent safety science company, UL. Total Energy Use (gas, oil, steam and electricity in MMBTUs) Energy Intensity (MMBTUs/million $ revenues) Electricity Use (MWh) Electricity Intensity (MWh/million $ revenues) Renewable Energy (% of electricity use) Renewable Energy (% of total energy use) Scope 1 (gas, oil, U.S. fleet in metric tons CO e) Scope 1 Intensity (metric tons/million $ revenues) Scope 2 (electricity and steam in metric tons CO e)2 Scope 2 Intensity (metric tons/million $ revenues) Scope 1 and 2 (metric tons CO e) Scope 1 and 2 Intensity (metric tons/million $ revenues) Scope 3 (Value Chain in metric tons CO e) Purchased goods and services (category 1)4 Capital goods (category 2)5 Fuel and energy related activities (not included in Scope 1 or 2 – category 3) Scope 3 (Value Chain in metric tons CO e)3 (Continued) Waste generated in operations (category 5) Business travel (category 6) Employee commuting (category 7) Upstream leased assets (category 8) End of life treatment, sold products (category 12) Net Zero Greenhouse Gas Emissions Total Emissions (metric tons CO e) Carbon Offsets (metric tons CO e) MWh neutralized through Renewable Energy Credits (metric tons CO e) Net Emissions (Scope 1, 2 and 3 in metric tons CO e)6 Net Intensity (metric tons/million $ revenues) Emissions Offset (% of total Scope 1, 2 and 3) Water and Wastewater Water Use (cubic meters) Water Intensity (cubic meters/million $ revenues) Wastewater Discharge (cubic meters) Wastewater Discharge Intensity (cubic meters/million $ revenues) Reclaimed/Reused Water (%)7 Non-hazardous Waste Generated (metric tons) Waste Composted (metric tons) Waste Recycled (metric tons) Waste to Energy (metric tons) Solid Waste to Landfill (metric tons)8 Non-hazardous Waste Generated Intensity (metric tons/million $ revenues) Hazardous Waste (metric tons)9 N/A = Data was not collected in reporting year.
1 Data includes 191, 945, and 281,977 MWhs of renewable energy certificates and guarantees of origin purchased in 2012, 2013 and 2014, respectively. Of the 281,977 purchased in 2014, 97,691 MWhs neutralize Biogen's electricity use and the remaining 184,286 MWhs is used to neutralize electricity use within our value chain. 2 Data reflects CO e from electricity and steam use, excluding impacts from renewable energy.
3 Data reflects business travel only for 2006 to 2013. 2006 baseline data is extrapolated based on data from prior years. Scope 3 categories 4, 9, 10, 11, 13, 14 and 15 were determined to not be relevant to our value chain.
4 Data includes 156,100 metric tons CO e from fuel usage and 91,600 metric tons CO e from electricity use.
5 Data includes 19,700 metric tons CO e from fuel usage and 11,600 metric tons CO e from electricity use.
6 Data reflects inclusion of carbon offsets and renewable energy.
7 Data reflects percentage of total water need sourced from reclaimed potable water, greywater and rainwater.
8 Data includes non-hazardous solid waste from our routine operations only. Waste derived from construction and demolition debris, incinerator ash and other contractor activities is not included. See Por discussion on restatement of previously reported 2012 and 2013 values.
9 Data reflects biomedical, hazardous and other regulated wastes.
Biogen works to ensure honesty, fairness and integrity in everything we do. We balance the needs of patients, society, shareholders and other key stakeholders through a focused and strategic approach. We treat employees with respect and provide an inclusive work environment that helps them grow and thrive. Access to Treatment: Innovative Solutions to Real-World Challenges Biogen has the opportunity to improve the lives of patients every day by bringing transformative therapies to market. But winning regulatory approval is just part of the challenge. For patients combatting serious chronic conditions to benefit from our efforts, they need access to the products we can provide. When that happens, everybody wins. Patients lead richer lives. Society benefits from a healthier, more productive workforce with less stress on an already strained healthcare system. And Biogen earns a profit while returning value to shareholders, which enables us to reinvest in drug research and development.
Global Market Access (GMAx): Mission Driven Success As the leader of our GMAx organization, I lead a team that is passionately driven to make patient access a reality. Our GMAx organization is uniquely positioned to operate at the intersection of science, medicine and economics. Together, we're focused on a singular mission: to define and implement innovative, evidence-based pricing and reimbursement strategies that ensure access to all of our therapies in markets around the globe. This is easier said than done, of course. It requires a thoughtful approach to balancing the needs of patients with our own return on investment to fund future therapies. And in today's dynamic healthcare landscape, this balancing act is growing increasingly complex. Payers, such as governments and insurance providers, are influencing more treatment decisions than ever before, requiring companies like Biogen to demonstrate the value of therapies beyond just safety and efficacy. We must show that our newly introduced products offer sufficient benefits over current treatments and, in many cases, that reimbursing the cost of the new treatment outweighs the economics of not doing so over the long term. ACCESS TO TREATMENT: INNOVATIVE SOLUTIONS TO REAL-WORLD CHALLENGES D av i d M i l l e r In pricing our products at Biogen, we seek to balance One of the more innovative approaches we have taken three elements: (1) access for patients; (2) sustainability in the past few years is to integrate more patient access for health systems; and (3) financial returns to support considerations into our research and development design. continued investment in innovation. As a result, we have GMAx and our R&D organization have begun collaborating generally priced our products to ensure that the choice much earlier on in the process. With payers making to use a Biogen product does not increase overall costs reimbursement contingent upon the kinds of data to the healthcare systems in which we operate. We also that can take years of post-launch experience to collect, provide significant patient assistance in the form of free we have made incorporating more evidence-driven drugs for indigent patients, drug copay assistance and strategies into our product development programs mandatory. This allows us to generate the types of data that can help advance regulatory approval for our therapies As a company focused on diseases where the unmet and satisfy expectations of payers, pricing reimbursement need for new treatment options is exceptionally high, authorities and health technology assessment (HTA)* it is especially important that we get this balance right. organizations. In fact, we now have specialized health If we fail, patients may not have anywhere to turn for economists embedded in all of our clinical trials. innovative treatments that could significantly improve their quality of life.
Achieving regulatory approval for a therapy means that a given regulatory body, such as the FDA, is convinced of its safety and effectiveness. It is not a guarantee that payers will cover the cost of the new therapy. GMAx strives to close the gap between the number Working to meet societal demands for of patients who can benefit from our recently launched access to effective therapies at reduced products and the number who have access to them cost, we are working with Samsung through payer reimbursement programs. While it's Bioepis (see Page o commercialize not always possible to close the gap completely, biosimilar anti-TNF product candidates we work to narrow it year over year. in Europe. These are expected to include Coming at Access from Multiple Directions biosimilars for widely used therapies. Biogen meets the challenge of patient access through research design, engagement with payer and patient- We are working to bring lower-cost advocacy organizations, flexible pricing structures, versions of important biological therapies patient financial assistance and free drugs. to patients following an appropriate period of exclusivity for the innovator product. *A health technology assessment is a multidisciplinary process to evaluate the social, economic, organizational and ethical issues of a health intervention or health technology.
ACCESS TO TREATMENT: INNOVATIVE SOLUTIONS TO REAL-WORLD CHALLENGES D av i d M i l l e r We are initiating more conversations with payers and HTA authorities early in the development process of our therapies, as well. These conversations have yielded Helping to Ensure Financial great insights into the perceived value of the products Access: Biogen Pricing Models in our pipeline and the types of evidence needed to help ensure their acceptance for reimbursement down the • Volume Rebates (primarily in the United States) road. We see only an upside to engaging payers so early on. Maintaining an open dialogue with payers and HTA • Risk Sharing (in some European countries) authorities is enabling us to make better decisions at every stage in the development process.
• Price Volume Agreements that cap payers' We are also engaged in continuous dialogue with total financial exposure many third-party patient advocacy organizations. These partners offer a highly credible and growing • Portfolio Pricing (where allowed by law) voice in the healthcare system. To support their efforts • Variable Pricing based on countries' gross in helping patients gain access to better treatments national product and services, we make sure they are armed with the research, knowledge and expertise they need to represent the patient perspective to policymakers and payers.
There will always be discrepancies around the world In the United States, our Patient Services team helps in payers' and patients' abilities to afford therapies patients navigate the often complex reimbursement that satisfy unmet medical needs. Our philosophy process and puts them in touch with agencies that is that a patient should never be denied access can help them secure the financial assistance they need. to a life-changing therapy due to an inability to pay. We also offer a free drug program to those patients that For this reason, we have put in place responsible can't access our therapies any other way. pricing structures that take into consideration the wealth of individual nations. In the case of our We believe we are on the right track but know that there's hemophilia factors, we have committed to giving still much work to be done. Our ultimate goal is to ensure the drug away in the world's poorest countries that everyone who is prescribed a particular therapy has where the need exists. the financial access to afford it. If we only secure access for a portion of the affected patient population who need our products, we've let patients, society and Biogen down. Because the stakes are so high, Biogen works relentlessly to ensure that patients have access to our products. • ENGAGING WITH STAKEHOLDERS Regular stakeholder engagement is a critical content of this report, and we are using the survey results component of how we pursue innovation across the to help shape how we continue to create value for our enterprise. To help inform the content of both our 2013 and 2014 Corporate Citizenship Reports, we conducted a Engaging with Patients, Patient Groups and Healthcare series of interviews in 2014 with representatives from the Professionals – As part of Biogen's commitment to investment community, as well as with several U.S.-based improving the lives of patients, we engage with them MS patient advocacy groups.
one on one, indirectly through advocacy groups and The following is a summary of our overall stakeholder professional healthcare societies and through our own patient services and assistance programs. Our global approach to working with patient advocacy groups is, Engaging with Investors – We regularly engage in part, a result of such engagement. See Page and communicate with the investment community, for more information.
both with traditional and socially responsible investors. For the past five years we have provided detailed information to RobecoSAM and the Dow Jones As a result of our patient engagement efforts, Sustainability Index (DJSI) — two of the most prominent Biogen has developed patient mentoring and entities that track and evaluate the performance of financial aid and free drug programs. the world's leading companies against economic, environmental and social criteria. We also participated Through ongoing dialogue and dedicated research, in the healthcare working group of the Sustainability and through a series of interviews with MS patient Accounting Standards Board (SASB), which helped advocacy groups, Biogen works to support patients and inform SASB's Biotechnology Sustainability Accounting their continued focus on key concerns. These include drug Standard. This nonprofit organization is engaged in availability and safety, financial support, access to drug the development of industry-specific sustainability information, expanded access programs, accelerating accounting standards that will be suitable for disclosure clinical development and approval timelines, improving in standard filings such as the Form 10-K.
the success rates of treatment and improving the overall In 2013, we contracted with a third party to conduct patient experience.
an investor perception survey to gauge traditional As a result of our overall patient engagement efforts, investors' and analysts' opinions on our strategy, Biogen developed patient mentoring and financial aid R&D capability, management team, communication and free drug programs; makes significant investments efforts and capital allocation. While the information in R&D, both within our own organization and in derived from this survey is proprietary, it was one of collaboration with others; works with regulators to help many inputs included in our 2013/2014 Materiality accelerate drug approvals and expand access to treatment; Assessment (see Pageormed the and provides advocacy groups with both financial aid and capacity building.
ENGAGING WITH STAKEHOLDERS In 2014, we created the Patient Center of Excellence • Lupus Foundation of America (PCOE) in the United States, which cultivates a deep • Lupus Research Institute understanding of the MS patient and leverages insights • Members of the MS Coalition (Accelerated Cure Project to provide solutions that meet their needs.
for Multiple Sclerosis, Can Do MS, Consortium of Multiple Sclerosis Centers, International Organization Some of the Patient Advocacy Groups and Professional of Multiple Sclerosis Nurses, Multiple Sclerosis Healthcare Societies with which we Engage Include: Association of America, Multiple Sclerosis Foundation, • Accelerate Cures and Treatment for Alzheimer's National Multiple Sclerosis Society, United Spinal Disease (ACT-AD) Coalition • ALS Association • Alzheimer's Association • American Academy of Neurology • Multiple Sclerosis International Foundation (MSIF) • American Academy of Nursing • MS Views and News • Chronic Disease Fund • Muscular Dystrophy Association • Coalition for Hemophilia B • Myotonic Dystrophy Foundation • Coalition for Pulmonary Fibrosis • National Alliance on Caregiving • Committee of Ten Thousand • National Health Council • National Hemophilia Foundation (NHF) • European Federation of Neurological • National Organization for Rare Disorders (NORD) Associations (EFNA) • Patient Services Incorporated • European Patients Forum (EPF) • Pulmonary Fibrosis Foundation • European Multiple Sclerosis Platform (EMSP) • Rare Diseases Europe (EURORDIS) • Genetic Alliance • Save One Life • Global Genes (RARE) • Hemophilia Federation of America (HFA) • Hemostasis and Thrombosis Research Society (HTRS) • SMA Foundation • Infusion Nurses Society • World Federation of Hemophilia (WFH) • International Alzheimer's Disease Association• Leaders Engaged on Alzheimer's Disease ENGAGING WITH STAKEHOLDERS Engaging with Employees – Listening to our employees • National Association for Environmental is critical to the success of our company. We solicit Management (NAEM) feedback through a variety of company surveys, • North Carolina Biosciences Organization (NCBIO) periodic roundtables and employee meetings. • Pharmaceutical Research and Manufacturers But we do more than just listen. We act upon their of America (PhRMA) suggestions and concerns. For example, our sabbatical Engaging in Public Policy – In 2014, Biogen CEO program and now annual year-end shutdown arose from George Scangos joined the leadership of PhRMA, employee feedback (see Pageor more information). the largest biopharmaceutical industry trade association. Engaging with Industry – Biogen engages in several George will assume the chairmanship of PhRMA in 2016, industry forums designed to further incorporate after serving one-year terms as Treasurer and Chairman- citizenship and sustainability. We are a member of elect, respectively. This leadership role is more than just the Global Environmental Management Initiative (GEMI), a great opportunity – it's an obligation to help shape the an organization of leading companies dedicated to future of the biopharmaceutical ecosystem. fostering excellence in sustainable business practices. We are also an active participant in the Pharmaceutical The development of good public policy is Supply Chain Initiative, which supports better social, one of the many ways that Biogen and our economic and environmental outcomes for all those who make up the pharmaceutical supply chain.
industry can care deeply and change lives. We are active members in organizations that share best Our mission depends on our ability to discover the latest practices within and outside our industry, including: scientific advancements, develop and deliver innovative • BioPharma EHS Forum medicines to patients living with serious diseases, • Biotechnology Industry Organization (BIO) and create a policy environment that makes it possible to devote huge sums of financial and human resources • California Health Institute (CHI) over long periods of time to fight daunting medical • Corporate Responsibility Officers Association (CRO) problems. Innovative products require creative policy • Direct Employers Association solutions to ensure that scientific discoveries are • European Federation of Pharmaceutical Industries translated into available treatments as quickly as and Associations (EFPIA) possible. The development of good public policy is • European Biotech Association (EuropaBio) one of the many ways that Biogen and our industry • European Confederation of Pharmaceutical can care deeply and change lives.
Entrepreneurs (EUCOPE) • Massachusetts Biotech Council (MassBio) ENGAGING WITH STAKEHOLDERS Public Policy Support – Biogen participates in public • U.S. Corporate Tax Reform. To help the United States policy discussions to benefit our patients and foster attract and retain innovative companies, as well innovation and growth in the industry. In 2014, as the jobs and societal benefits that go with them, our work in public policy revolved around a number we must build a competitive corporate tax system that of key issues, including: provides incentives for companies to invest in research, development and manufacturing in the United States. • Ensuring Patient Access. Sufficient protections should be in place to establish healthcare systems For more information on Biogen and public policy, that ensure timely patient access to the most please visit our appropriate healthcare providers, services and Through the Biogen Political Action Committee, we support treatments. Biogen worked closely with U.S. candidates that we believe shape the issues that impact policymakers to incorporate a policy change that will our industry and the patients we serve. Information on our accelerate the review of conditions to be added to the contributions can be found on the newborn screening panel of tests. Our work will help newborns with heritable conditions receive earlier can be found on our website. access to potentially life-saving treatments. • Strong Intellectual Property Protection. Fair and effective incentives are necessary for continued biomedical innovation and ongoing investment in research to fund new treatments and cures for patients facing the most challenging diseases. • Advancing Drug Development. Supporting regulatory reforms, including those that target clinical trials and regulatory science, to reduce development and approval timelines and accelerate the availability of treatments for patients with unmet medical needs. Biogen is actively engaged in the 21st Century Cures Initiative to help develop a regulatory framework in the United States that accelerates the pace of treatments and cures for patients. Funding Our Future Through Human Capital Biogen is only as great as the people we attract, develop and retain. As a company on the forefront of cutting-edge science and medicine, our business depends on innovative thinking from passionate people who care deeply for the patients we serve. Today, the pharmaceutical industry is facing headwinds it has never before experienced. The dynamic of how we do business is changing. The goal of meeting unmet medical needs has grown more complex in an environment where drug companies are increasingly being asked to prove not only the safety and effectiveness of their products, but the economic and societal benefits as well. In this period of incredible change, human capital will differentiate us in an industry where expectations to perform keep rising.
Ensuring that we have the right people and programs in place to navigate this emerging environment is no small feat. But as I reflect on the advancements we made in 2014 to improve our company's learning strategy and the pipeline and development of talent, I'm confident that our business is poised for continued growth. Turning Learning into Leadership In 2014, we established the position of Chief Learning Officer to work closely with our executive team to ensure that our talent development agenda aligns with our corporate strategy. As a result, we've established the Biogen University Advisory Board – a group comprising senior leaders who are tasked with advising, funding and directing our overall approach for delivering learning inside the company. Through this initiative, we've evolved what was once a highly decentralized structure into a more centralized learning function that can develop employees at Biogen more efficiently and effectively.
FUNDING OUR FUTURE THROUGH HUMAN CAPITAL Ke n D i P i et ro We nearly doubled participation in our Leading at Biogen since gone much deeper into the organization around the (LAB) program, a leadership course for high-potential world. We've also developed career model frameworks for individuals at Biogen that I co-teach alongside our CEO a broad set of functions within Biogen that outline the core George Scangos. This six-day intensive course not only competencies and experiences needed to grow a career here.
imparts fundamental leadership skills and strategies Embracing Differences, Driving Innovation to these rising stars, but also gives us insights into Beyond learning, we have also invested in programs that the talent within our company. By the fall of 2015, support a diverse workforce and inclusive culture at Biogen. we expect more than 45 employees will have completed This includes cultivating a strong network of female leaders this program. These alumni will essentially serve as within our company. In 2014, we partnered with professors an extension of our leadership team, working on key at Babson College specializing in teaching entrepreneurship projects and initiatives that give them the opportunity to develop our company's first leadership program designed to test their leadership skills while solving real-world specifically for high-potential women at Biogen. We will be business challenges at Biogen.
piloting this program with our first group of 20 women in 2015. We have also launched Raising the Bar: Advancing Women "We have launched Raising the Bar: Advancing Women on Boards, a pilot on Boards, a pilot program introduced in early 2015 to sponsor high-potential female leaders to take on roles on program introduced in early 2015 to corporate boards. Women hold less than 20 percent of sponsor high-potential female leaders Fortune 500 board seats and approximately 10 percent to take on roles on corporate boards. of board roles in biotech companies. There is an immense pool of talented, but underutilized women eager to help We've also listened to our current employees companies succeed at the highest level. While the program and developed new initiatives to help them better is still in its infancy, we've already secured two board understand how to advance their career at Biogen. In placements through this initiative.
2014, we launched a small task force to research who succeeds at Biogen and why. We are currently sorting These kinds of innovative programs, coupled with our through this data for insights that will help us make Global Diversity + Inclusion initiative and growing Employee better development decisions.
Resource Networks, have established Biogen as a leader in advancing diversity and inclusion as a strategic imperative. We have also expanded our Organization and Human This is reflected in the increasing percentage of employees Resource Planning (OHRP) process, an initiative that who – based on surveys conducted over the past several leads to rich, constructive conversation with managers years – believe Biogen recognizes and respects the value and direct reports about their potential assessment, of human differences. And externally, Biogen continues as well as the development actions needed to progress to be recognized as a great place to work. to the next step in their career. When we first launched OHRP in 2013, we kept it at a fairly high level, but we've FUNDING OUR FUTURE THROUGH HUMAN CAPITAL Ke n D i P i et ro Building for our Future: Attracting and Retaining the Very Best Biogen offers both traditional and nontraditional talent landscaping initiative in 2014 to build a deep benefits and rewards to help keep employees engaged familiarity with talent pools across the biotechnology and satisfied, while also maintaining a healthy work- industry. By developing an understanding of who the life balance. For example, we introduced a new Global best people in the industry are and evaluating their Sabbatical Program in 2014. After six years of service potential to help Biogen, we're deepening our pipeline to the company, Biogen employees are now eligible of candidates for future positions within our company.
for a four-week fully paid sabbatical leave. Thoughtfully We have made tremendous strides in 2014, but there disconnecting from work for an extended period to pursue will always be more to accomplish. Biogen is fundamentally personal interests leaves employees energized and ready dependent on attracting and retaining the very best to immerse themselves when they return. That belief has people, instilling in them a sense of mission and wrapping been reinforced by feedback from the first group to take it around an extraordinary culture. We must get this advantage of this program.
combination right. Because, as I like to remind myself and other company leaders, at the end of each day our strategy walks out the door and every morning it walks back in. • "I like to remind myself and other company leaders, at the end of each day our strategy walks out the door and every morning it walks back in." We have also made enhancements to our long-term incentive program to better resonate with our senior leaders and give them more ownership in the success of our company. Even as other companies have moved away from long-term incentives, we continue to grant them broadly as a way to align our interests with the interests of our shareholders while also rewarding our best employees for their performance. But as we look to grow our ability to improve the lives of patients, we know we need to be even more strategic in how we identify and attract the best and brightest minds to Biogen. To that end, we launched our competitive Our future as a company depends upon a workplace that enables our employees to grow their careers and achieve their objectives — both at work and outside the office. When this happens, everyone benefits. To this end, we embrace a global Culture of Excellence through collaboration, innovation, development, diversity, recognition and work-life balance. We embrace top talent from all backgrounds and foster a work environment where all employees feel empowered to do their best work. Our people are our foundation, and we draw our entrepreneurial spirit from the energy of a team with different backgrounds, perspectives and life experiences. We have worked hard to infuse Diversity + Inclusion principles and practices into our global culture. We embrace top talent from all backgrounds and foster a work environment where all employees feel empowered to do their best work. continues to guide our efforts to move our D+I initiative forward and enhance our position as a great place to work In early 2014, we launched our Global Diversity + for people of all backgrounds. Inclusion (D+I) initiative to elevate our company's commitment to diversity and inclusion. We set out to prepare more women for leadership roles, integrate the In 2014, for the second consecutive year, we achieved a perfect needs of diverse patients, encourage supplier diversity, score of 100 on the Human Rights Campaign's (HRC) Corporate train our managers in inclusive leadership and further Equality Index and were named one of HRC's Best Places to develop our Employee Resource Networks (ERNs). Work. The Corporate Equality Index is a widely recognized, We've made significant progress in these areas, national benchmarking tool for corporate policies and practices and we continue to measure our impact.
related to lesbian, gay, bisexual and transgender employees. In 2014, we were also recognized as a best place to work by Our D+I Strategic Council – a group of 18 men the , as a leader and women drawn from across our business – in diversity by the and nominated for our commitment to supporting BIG CHAMPIONS OF employees serving in the National Guard and Reserve.
INCLUSION AWARDS Supporting Underserved MS Patients Our Underserved Populations Initiative seeks to Our "BIG Champions of Inclusion" program improve MS outcomes among racial and ethnic minority identifies and recognizes employees who promote diversity and inclusion in their populations in the United States. In collaboration with day-to-day work. In 2014, we received more an external steering committee, we are working across than 350 inspiring nominations and honored functional groups within Biogen to launch programs five individuals for their outstanding that help ensure under-represented MS populations contributions. The awardees were: have access to the information and treatment they need. Launched in 2014, this initiative focuses on: • Giuseppe Banfi for encouraging everyone in the Milan office to share their insights and opinions, accept ideas from colleagues and • Data Generation: Increase the availability of information participate in inter-departmental discussions.
on clinical outcomes and treatment responses in minority populations.
• Roger Carter for helping the ERNs develop TeamNet sites and distribution lists and • External Education: Increase awareness of MS among recruiting others to help by matching their minority populations and improve the availability of interests and skills with opportunities. educational resources tailored to their specific needs.
• Kurt Kreiter for providing opportunities for team members to explore and understand • Internal Education: Increase our awareness of the their competencies, ensure they realize why needs of MS patients in minority populations and they're successful in certain areas and how lead efforts to address them.
they can replicate success.
As part of this initiative, a group of Biogen leaders recently • Pamela Haire for creating and traveled to the Caribbean Neurology Center in San Juan, implementing programs to innovate Puerto Rico, to identify ways we can meet the medical and empower employees and for co-leading our Women's Innovation Network (WIN) needs of MS patients in the Hispanic community.
RTP chapter.
• Lisa Amaya Price for creating the name "WIN" and inspiring her team to do their best and be inclusive of what everyone brings to the table.
Encouraging Inclusive Leadership We believe that there are certain attributes and Advancing Women's Leadership behaviors required to foster a workplace where To continue to thrive as a company and an industry, everyone's contributions are recognized and valued. we must advance leadership opportunities for women. To bring these to life, we provide our managers with the Women currently make up just over half of our global opportunity to test and improve their leadership through an workforce and about 40 percent of our management team. e-learning program called Becoming an Inclusive Leader. Employees use a workbook to record their insights We conducted a survey on women's and commitments as they move through online course leadership with female executives and modules. Throughout the course, employees conduct directors within Biogen to understand the self-assessments, create a plan of action related to experiences of emerging women leaders. the course content, and plan discussions with their managers and peers on how to promote more inclusive Our Women's Innovation Network (WIN) Employee Resource Group provides opportunities for women to network, learn, seek out mentors and develop their Employee Resource Networks careers. Though primarily focused on women's careers Our employees have the opportunity to participate in ERNs and leadership, WIN proactively recruits and welcomes for people with shared characteristics or life experiences, employees of all gender identities who wish to act as allies. and all supporters are welcome to join any network to help WIN has approximately 1,200 members, both women advance the inclusion of others. Each of our employees and men, in chapters at all our major offices worldwide.
that participated in our ERNs in 2014 helped embed our D+I commitment throughout Biogen. In 2014, we also laid the groundwork to launch our Women's Leadership Program, a new leadership U.S. Military Veterans Employee Resource Network development program for high-potential women employees. Launched on Veterans Day in 2014, our newest ERN We conducted a survey on women's leadership with female provides U.S. veterans and members of military families executives and directors within Biogen to understand with a platform to connect and educate others about their the experiences of emerging women leaders, potential unique background and experience. This group helps challenges to their advancement, and ways to better veterans translate their experience to the workforce and leverage the talents of women. raise awareness within Biogen of how individuals with military backgrounds can enhance our teams. In 2015, Based on this feedback, we developed the Women's this organization will strive to grow its membership and Leadership Program in collaboration with Babson continue attracting the interest of talented veterans, College's Center for Women's Entrepreneurial Leadership. adding to our already diverse community.
This program focuses on enhancing the careers of high-potential, emerging women leaders in management working environment for LGBTQ employees and exemplify positions and develops a talent pipeline to fill future our commitment to social responsibility and innovation. senior leadership positions. Taught by faculty at the Among other milestones, in 2014, this group helped us college, the program includes in-class curriculum as become one of the few companies in the United States well as hand-on development activities related to each to offer employees transgender health coverage that participant's current role.
includes gender reassignment surgery. Twenty high-potential women leaders from Mosaic Employee Resource Network cross-functional areas of our company were selected Mosaic focuses on opportunities to celebrate and learn to participate in the pilot program, which launched from the multicultural backgrounds of Biogen employees. in January 2015. Initial feedback is overwhelmingly The group fosters awareness, appreciation and collaboration positive, and we look forward to reporting the pilot's by encouraging members to develop a richer understanding outcomes in 2015. of one another's cultural heritages and identities. Our U.S. chapters have attracted both immigrants and people who ReachOUT Employee Resource Network trace their American ancestry back generations, while our ReachOUT is our network for lesbian, gay, bisexual, European chapters celebrate the diversity of often dozens transgender and questioning (LGBTQ) employees, of nations represented in a single worksite. Mosaic also along with their straight allies. This organization works sponsors cultural events hosted at our Cambridge, RTP and to increase awareness and acceptance of the LGBTQ Hillerød locations to celebrate the diverse backgrounds of our community within Biogen, support a best-in-class employees with a different cultural theme each month.
DIVERSITY AT BIOGEN (in percent) (defined as Director and (defined as Director above in all locations) and above in the United (defined as Director and above in all locations) CREATING A GREAT WORK ENVIRONMENT B eyo n d B e n e f i t s Rewarding Great Work Biogen offers a comprehensive employee incentive program – one that goes "beyond benefits" and is highly competitive with other biotechnology and pharmaceutical leaders. It features valuable protection so employees can focus on their careers, knowing that there are incentives available to them to encourage success. The program focuses on these key areas: • Protecting Employee Health – Our program features preventive care and wellness programs and access to comprehensive care and services.
• Protecting Employee Income – Biogen automatically provides company-paid life insurance and disability coverage. If needed, employees can supplement this coverage to be sure they have the right level of financial security.
• Balancing Work and Personal Life – Biogen offers a range of individual and family support programs designed to help employees manage life's daily responsibilities and challenges.
• Planning for the Future – Biogen offers a variety of programs to help employees with their financial well-being and assist them with planning for a secure financial future.
• Recognizing Commitment and Contributions – Visit our website for more information about Biogen's BIG recognition program is designed to encourage and enable timely and personalized recognition. Awards range from peer-to-peer thanks for a job well done to service awards for continued commitment to the company.
Employee Health and Safety A key component of our commitment to acting responsibly is constantly striving to find new and innovative ways to ensure a safer, healthier and more pleasant environment for our employees and visitors. We are continuously challenging ourselves to provide and foster a culture where health and safety are the norm. As a growing, international company, we recognize the importance of having a world-class EHS+S management model and delivering exceptional performance. Our goal is to create a workplace that is free from disabling injuries, and our updated EHS+S Management System helps us do that efficiently and effectively. See Pageor a visualization of that system. EHS+S Mission: We will develop and manufacture therapies, as well as design, build and operate our facilities in ways that maintain a safe and healthful workplace; conserve energy, water and raw materials; and prevent harm to public health and the environment. We will establish and maintain effective procedures and systems to adhere to these principles and track progress against our EHS+S strategy. EHS+S Policies: - - Global EHS+S Management Standards Objectives & Targets Event Reporting & Preventive Action Inspections & Audits Global Operational Control Standards EHS+S Planning and Operating Strategy: A key element of the Biogen management system is our annual global EHS+S planning process. Each year, the company updates its three-year strategic EHS+S plan based on current progress, emerging issues and internal and external stakeholder feedback. Company objectives are integrated into corporatewide and facility-level EHS+S plans to create global alignment and focus. For more information on the environmental and product stewardship aspects of our strategy, please see Pagespectively.
Mitigate Operational Risk Focus EHS+S resources on identifying and mitigating risks that involve physical or health hazards with the potential to cause significant injuries, illnesses or death, or that that may significantly impact the environment or surrounding communities. Improve the EHS+S Management System Leverage Sustainability Opportunities Our FIVE
Improve the effectiveness and efficiency Identify and manage emerging of the Global EHS+S function through sustainability related risks and opportunities smart investments in programs, initiatives to improve our environmental and social and processes. 4 Promote a Culture of Safety and Health Identify and Manage Extend and improve existing safety culture through "Product Stewardship" Obligations employee engagement and middle management Assess and mitigate social and environmental ownership of roles and responsibilities. Positively risks associated with the development, impact employee lives through holistic and manufacturing and use of our products. integrative wellness initiatives. Our Health and Safety Culture We believe the best way to cultivate a culture of health, safety and wellness is to empower our employees and recognize those who champion this culture. Each year, our EHS+S Awards honor employees who voluntarily go beyond their duties to promote a better workplace. To qualify for these awards, the employee's primary job responsibilities must be outside of EHS+S. The Health + Safety Award distinguishes an employee or team who has positively influenced internal health and safety behaviors, demonstrated leadership or raised awareness of key health and safety issues, reduced the risk of an identified hazard, or improved our company's health or safety performance. We have highlighted the Health + Safety Award winners here, and more information on the Sustainability Award and its winners can be found on Page Our Global Health + Safety Award Winner for 2014 was Willy Thomsen (Hillerød) for making a positive impact on the health and safety culture during a key construction-related project. Our 2015 Regional Health + Safety Award Winners: • Renata Lopes (Japan, Australia and Emerging • Rich Toniazzo (RTP) for being instrumental in the Markets) for looking for ways to provide employees implementation of the graphical lockout/tagout with better working conditions and benefits, program at the Oral Solid Dose (OSD) site for emphasizing the importance of having a healthy the Manufacturing group and being an active balance between work and personal life. member of the OSD Safety Committee. • Kenneth Romig (Cambridge) for leveraging • Andrea Trementozzi (Cambridge) for establishing his manufacturing safety expertise to conduct safe waste handling and personal protective new employee training and mentoring less equipment practices for the new Oral Drug • Tanja Ruah (Germany) for initiating Biogen's • Mike Casey, Mike Cole, Allison Groseclose, participation in the Munich city run, B2RUN, Jack Kane, Chien Lin, Keith Melchiors and forming a weekly running group and raising Mark Von Bokern (RTP) for identifying a more awareness about the importance of personal efficient lockout/tagout solution that uses a single isolation point rather than a traditional multipoint approach, setting a precedent for • Marianne Strickler Binder (Zug) for introducing new similar future equipment and process designs. employees to important health and safety topics and assisting employees with ergonomic seating. Enhancing EHS+S Culture in our Affiliate Offices systems-related changes are needed. Our goal to Biogen provides a safe and healthy workplace for all of our reduce our DACR by 80 percent by 2020 (compared employees at each of our locations. In 2014, we created to our 2006 baseline) is still relevant and achievable.
the EHS+S in Affiliate Offices Guide to tailor the relevant Fleet – In 2014, our Accidents per Million Miles rate aspects of our global health and safety program to these increased over 2013. It is Biogen's policy to provide smaller, office-type environments where occupational a company vehicle to field-based employees who have hazards are relatively low. Because our affiliate offices an ongoing business need for ground transportation often do not have dedicated health and safety managers in order to perform their job duties effectively. on-site, we created an assessment process to complement Biogen is committed to promoting a high level of the guide. During 2015, we will enlist a third-party safety awareness and responsible driving behavior consultancy to assess about half of our affiliate office in our employees. Employees are required to attend locations, which will account for about 90 percent of behind-the-wheel driver training, drive and maintain our affiliate-office employees.
the vehicle in a safe operating condition at all times. Safeguarding Contractors and Employees Contractors – Our commitment to a safe workplace benefits both our employees and the contractors Health and Safety Performance working within our facilities. In 2014, our incident rate was 2.4 across our three major sites and more than 407,000 subcontractor hours. This number Days Away Case Rate stems from two Lost Time Accidents and three Accidents per Million Miles recordable injuries. While our rate in 2014 is not quite as good as the previous year, Biogen continues to rank better than the industry average for contractor safety. Employees – Overall, our employee safety record has improved over time. In fact, our occupational safety performance continues to be in the first quartile of companies in the biopharmaceutical industry. There will be individual years when the Days Away Case Rate (DACR) or Accidents per Million Miles (APMM) rates increase, but we expect that the trend of decreased rates will continue over time. While our DACR appreciably deteriorated in 2014, we believe the systems in place are still effective, and that no major structural or We invest in the well-being of our employees by encouraging them to use an array of company-supported wellness offerings, including state-of-the-art fitness centers on-site INCIDENT-INJURY at all major locations; cafes with healthy dining options; FREE IN HILLERØD walk-and-work stations and ergonomic instruction and support; free on-site nutrition counseling and biometric Incident-Injury Free (IIF) is a personal screenings throughout the year; on-site massage therapy and organizational commitment to create an environment absent of incident and and many educational and program opportunities targeted injury. Our Hillerød location adopted IIF to specific health risks and lifestyles. in 2014 on a continuing basis for our water Purification 2 Harvest 2 project. IIF is not Individual locations also champion their own wellness a program, a campaign or a "zero injuries" programs that align with their resources and most project. It is a journey and mindset that prevalent health risk factors. Some examples from across brings safety to the next level by making our operations include: it personal to all employees and company leadership. The IIF approach takes people beyond simply learning how to avoid what • The Cambridge Wellness Center provides holistic they don't want to happen to learn how to well-being services, including fitness for duty evaluations, achieve what they do want to see happen. ergonomic assessments, immunizations and clinical tests.
• Our RTP Wellness Program offers employee activity groups that promote active lifestyles and weight loss and offers Promoting Employee Wellness nutritional counseling, health seminars and other on-site We work to create robust wellness initiatives focused health services. on advancing a work environment that supports healthy lifestyles. The Global Wellness Program at Biogen builds • Employees in Denmark can take advantage of on-site on a simple premise – a person's health and well-being health services including massage therapy and matters for a lifetime. This program employs strategies that aim to enhance our employee's physical, mental, emotional and financial well-being. • Switzerland-based employees, primarily in Zug, have access to a growing number of wellness opportunities, including An important part of cultivating a healthy workplace fitness classes, clubs and stipends, access to healthy food is empowering employees with knowledge about their and ergonomic workspaces.
own health. We incent employees to take a health risk assessment and receive biometric screenings each year. • At our major U.S. and international locations, we hold benefits fairs at which employees have their health and fitness levels measured. PRODUCT RESPONSIBILIT Y Responsible Supply Chain Improving the lives of patients encompasses an array Pharmaceutical Supply Chain Initiative (PSCI) of measures to ensure that we source supplies and is a group of major pharmaceutical companies that materials responsibly and protect the integrity of our share a vision of better social, economic and environmental products throughout their lifecycle, from production outcomes for everyone in the pharmaceutical supply through final disposition. We do this through checks chain, including improved conditions for workers, and balances within our company and in collaboration economic development and a cleaner environment with others in the pharmaceutical supply chain.
for local communities. PSCI seeks to establish formal industry guidelines about ethics, labor, health and safety, All of Biogen's suppliers are subject to our Code the environment and management systems, and to support of Business Conduct, and must suppliers to build capacity to operate in a manner consistent meet rigorous compliance standards for quality, with those expectations. The initiative is being facilitated by as well as comply with applicable external laws and regulations. Currently we source the majority of our materials from regions that are not considered high risk from an environmental, social and governance All of Biogen's suppliers are subject to perspective, such as the United States and Europe. our Code of Business Conduct, Values in Nonetheless, we work diligently to make sure our Action, and must meet rigorous compliance supply chain is of the highest quality.
standards for quality, as well as comply with applicable external laws and regulations. For those vendors that supply products and services that relate directly to the safety and integrity of our Biogen is an active participant in PSCI, and supports the products and the continuity of our manufacturing Principles, which align with international frameworks and process, we employ self-assessment surveys to gauge standards, including the United Nations Global Compact corporate citizenship performance. Since 2011, and the International Labour Organization. PSCI's initiatives we have processed over 65 surveys and are using include shared audits of major suppliers, conducted by this information to better understand supplier practices. third parties under PSCI direction, and supplier capacity We also intensified our focus on implementing building. This approach yields a broad array of critical a proactive supply-chain risk management process. information about the supply chain, provides guidance This annual process assesses the risks associated for suppliers and streamlines the process for both with our supplier base from an environmental, pharmaceutical companies and their suppliers.
social and governance perspective across multiple factors, including water risks. We have not identified any at-risk suppliers through this process. PRODUCT RESPONSIBILIT Y Over the last three years, PSCI completed 27 joint Supplier Diversity audits and 60 shared PSCI audits. Audit results are Biogen's supplier diversity commitment aims to have available through the PSCI Online Supplier Directory, our employees, suppliers and patients embody the rich which gives PSCI members quick and easy access to and diverse communities we serve. Our philosophy is audit reports and documents. PSCI also expanded its based in the belief that by enriching our partnerships through resources for building supplier capacity by creating the inclusion of small businesses and businesses owned by a robust online resource library. To date, there have veterans, service-disabled veterans, LGBT individuals, women been 240 environmental, health, safety, labor and and minorities, we further support our company's economic social-related standards and documents loaded into growth, innovation and competitive advantage. In 2014, the Supplier Library. we spent more than $143 million with diverse suppliers. PSCI held supplier events reaching over 200 suppliers To learn more about our commitment to supplier diversity, in China in 2014 to promote suppliers' capabilities please on our website.
to operate in a manner consistent with the group's Product Security and Brand Protection expectations. In September 2014, PSCI held a Biogen takes the issue of counterfeit, adulterated and conference in Suzhou, China, to present its Principals compromised drugs very seriously and is committed to for Responsible Supply Chain Management to leading the highest standards of drug quality and patient safety. suppliers of PSCI members. The conference focused Counterfeits, adulterated and compromised drugs by their on the following topics: nature are of unknown safety and efficacy, thereby putting patients at risk. As part of our commitment to patients, • An overview of the PSCI core Principles, with a focus Biogen is dedicated to protecting the safety and integrity on management systems, ethics and labor practices.
of our products around the world. • An in-depth understanding of selected critical health and safety practices related to the management of process safety and industrial hygiene challenges in the pharmaceutical industry.
• An overview of the environmental laws of the People's Republic of China and selected environmental protection practices, with an emphasis on hazardous waste and wastewater management.
PRODUCT RESPONSIBILIT Y Worldwide markets for biopharmaceutical products Product Stewardship like ours are generally well regulated for the secure While ensuring the integrity of our products and their delivery of medicines, and we have great trust in the end-of-life disposition has long been a priority at Biogen, governments and commercial partners who help we have recently begun taking a more expansive and distribute our therapies. Our product security and brand strategic view of this important topic. Our product protection program supports an effective, secure and stewardship efforts are aimed at minimizing adverse health, resilient global supply chain, and the overall integrity of safety, environmental and social impacts and maximizing Biogen's medicines, for the protection and safety of our the benefits and value of our products throughout their patients. Some of the measures Biogen is employing to full lifecycle. We view it as a core responsibility and an deter, detect and disrupt the criminal counterfeiting of opportunity for innovation and ongoing improvement. our medicines include: Our product stewardship approach encompasses decisions and activities at every stage of the product lifecycle and will • Implementing sophisticated technology into our continue to develop and focus on the following areas: product packaging • Using green chemistry to reduce the use of energy, • Auditing and monitoring of supply chain water and hazardous materials in our development partners globally and manufacturing processes • Monitoring drug sales and potential threats to the • Reviewing materials used in devices to reduce their supply chain with counterfeit or diverted product environmental footprint Biogen supports the use of appropriate track-and-trace • Reducing the environmental impact of product techniques to advance the security of the supply chain. Delivering safe, secure, effective products to patients remains our commitment.
• Disposing of products responsibly at end of life • Ensuring that our products adhere to national and international regulatio, and other industry-related standards, including those governing conflict minerals ENSURING ETHICAL BUSINESS PRACTICES Code of Business Conduct Biogen conducts business ethically and with the The Code was updated in 2013 to contain new sections highest degree of integrity. Sound corporate governance that illustrate Biogen's ethical foundations, the real-life is essential to sustaining our growth and success as a application of company values and resources for taking company and to maintaining the trust and confidence of action. There are also new credo statements, as well as our stakeholders. This extends throughout all aspects of revamped chapters, including content on the importance our business, from the way we conduct clinical trials to the of speaking up, putting patients first and ethical decision- way we market our products. All employees must comply making. The revised Code places particular focus on with our Code of Business Conduct, Values in Action, patients, one of our key values. which guides decision-making throughout our organization. We update the Code as needed and require employees Every function within Biogen works to to participate in training sessions to ensure that they advance our efforts to operate responsibly understand all the principles and practices that it and sustainably. The Code covers six core principles: Every Biogen employee is required to be trained on our Code of Business Conduct. Our Anti-Bribery and Anti- • We Respect Patients and Healthcare Professionals Corruption Policy outlines standardized global operating procedures focused on grants and donations, sponsorships • We Work Together As a Team and fees for services and hospitality. • We Are Fair and Honest With Our Business Partners Responsibility for our performance begins with our board of directors. As of May 2015, the board has • We Protect Our Information and Assets 11 members, three women and eight men, all of whom meet the independence requirements of the NASDAQ, • We Never Compromise Our Integrity with the exception of our CEO. The board's Corporate Governance committee sets our company's governance • We Are Transparent framework in our Corporate Governance Principles. For more information on our board and board committees, please see the section of our website.
ENSURING ETHICAL BUSINESS PRACTICES Corporate Citizenship Strategy will perform in conjunction with a trial and agree to an Our commitment to corporate citizenship and associated budget and payment structure. Biogen conducts environmental sustainability is grounded in our fair market value assessments to ensure that investigators Code of Business Conduct, Values in Action and the are paid fairly for their work conducted. We also have policies , adopted in 2011 by our that require investigators to disclose any financial interests Corporate Sustainability Council (CSC), a cross-functional in our company, thereby reducing the potential for conflicts team chaired by our CEO. Values in Action sets forth of interest.
expectations for patient care, research ethics and human rights, among other topics. In fulfilling its mission to improve human health worldwide The Sustainability Policy lays out our commitment through the discovery of therapeutic compounds – and to to operating in a manner that reduces our environmental ensure their efficacy and safety for use in humans – impact, improves social conditions and promotes Biogen uses insights that can be acquired only through economic prosperity. The Policy also requires the studies involving the use of certain animals. In many cases, company to develop a long-term corporate citizenship this is essential to determining the therapeutic relevance strategy, including goals, objectives and targets, of new research approaches for human diseases. and an annual report on our progress. Every function Biogen is at times required by standards of scientific within Biogen works to advance our efforts to operate best practice, or by government agencies charged with responsibly and sustainably. Each function develops the protection of public health, to sponsor research that strategic plans that are approved by management, uses animals in order to determine the efficacy and and in certain cases, by the board of directors.
safety of therapeutic compounds.
Payments to Investigators When required to sponsor research that uses animals, To ensure the integrity of our research, we employ stringent Biogen adheres to applicable national and international guidelines in identifying and contracting with investigators laws, policies and guidelines on the humane treatment of (physicians and other personnel) who implement the animals used in research, including but not limited to the clinical trials sponsored by Biogen. We also conduct Animal Welfare Act, the U.S. Public Health Service Policy, extensive capability assessments to determine whether the National Institutes of Health and the Association for investigators are able to comply with the requirements Assessment and Accreditation of Laboratory Animal Care of the protocol. We require both investigators and the (list of applicable regulatio institutions that employ them to review the services they ENSURING ETHICAL BUSINESS PRACTICES Responsible Marketing Our Product Review Committees are responsible for We are committed to providing information that reviewing and approving marketing materials before they is accurate, supported by scientific evidence and are distributed publicly. We have adopted a global policy presented honestly and fairly in every context. that identifies general principles to be incorporated when Our interactions with patients and healthcare global promotional materials are created, as well as providers are governed by all applicable laws standard operating procedures that are implemented and regulations, as well as by our Code of Business by all Biogen offices throughout the world.
Conduct, Values in Action, and our Comprehensive Compliance Program. All applicable employees receive regular training and education programs regarding our marketing policies and practices.
We recently revised our Code of Business Conduct, Values in Action, among other actions, to update and improve on our policies regarding product information and promotion, as well as our interactions with healthcare professionals and organizations. All employees were required to take part in online and hands-on training, which used real-world examples to help bring these policies to life. We aim to ensure that all of our marketing materials are created and communicated in an ethical and responsible manner. All employees were required to take part in online and hands-on training, which used real-world examples to help bring these policies to life. We aim to ensure that all of our marketing materials are created and communicated in an ethical and responsible manner.
About This REPORT Biogen's annual Corporate Citizenship Report presents our citizenship and sustainability achievements, challenges and goals to our employees and outlines our ongoing engagement with patients and other key stakeholders.
ABOUT THIS REPORT This report was prepared in accordance with the Determining Material Issues idelines "Core" option In late 2013 and early 2014, Biogen conducted a full and includes a substantial amount of information required Materiality Assessment to determine what citizenship of the "Comprehensive" option. The report constitutes and sustainability issues have the most impact on our a high degree of transparency and data inclusion. company and are most important to key stakeholders. We have strived to include in-depth coverage of the Our Scope 1, Scope 2 and Scope 3 (business travel only) most material topics within this report and/or on applicable emissions were verified by , in accordance with sections of our website. We believe that these issues the AA1000 Assurance Standard (2008). All other have remained largely consistent since the 2013/2014 Scope 3 emissions data were assured b Materiality Assessment and plan on periodically conducting Net Zero Carbon Footprint determined according to assessments to ensure that we are addressing the issues Biogen's Carbon Neutrality Methodology assured by most important to our company and our stakeholders. ERM CVS based on We have made some minor changes to our Materiality Matrix and Grid to reflect the following: Data in this report covers our domestic and international companywide operations, including consolidated subsidiaries • The topic of Intellectual Property was deemed to be more but excluding joint ventures, for calendar years 2012 through significant to certain external stakeholders than we had 2014, with an emphasis on 2014 activities. Some activities indicated in our last report, based on additional secondary of note from the first half of 2015 are also covered. Our 2014 research we conducted in 2015.
environmental data includes our main locations (Weston, Mass., Cambridge, Mass. and Research Triangle Park, N.C. • The topic of Diversity was moved further to the right in the United States and Hillerød, Denmark).
in the Materiality Grid, reflecting the increasing This report excludes one small entity, Neurimmune SubOne, emphasis we place on this important issue.
which Biogen does not own but consolidates for financial reporting purposes. • The topics of Training and Development and Talent Attraction/Retention were combined under All references to currency are in U.S. dollars. Biogen is a single heading of Talent Management.
responsible for the preparation and integrity of the content in this report. Through a system of internal controls, including a comprehensive verification process by internal subject matter The topics included in this report have been affirmed by our experts, we believe this report accurately represents our CEO, George A. Scangos, Ph.D. as being our most material corporate citizenship and sustainability initiatives. For more citizenship and environmental sustainability issues.
information on this report, send questions or comments to .
ABOUT THIS REPORT We conducted our Materiality Assessment through one-on-one interviews with more than a dozen a rigorous methodology that included the review of key Biogen subject matter experts, as well as reviewed guidelines set forth by respected external organizations. an abundance of company literature and research. In all, we explored 37 topics. To populate the list of Based on these factors, the issues deemed as the most topics to include in our analysis, we referenced the material to our company and to stakeholders are shown in Sustainability Accounting Standards Board (SASB) the upper right quadrant of our Materiality Matrix (Figure 1).
Biotechnology Sustainability Accounting Standard, A more detailed look at our material issues, including which has its own rigorous materiality process; where the associated impacts occur and the relative level United Nations Global Compact's Ten Principles; of control that Biogen can exert over these issues, is found The Ceres Roadmap for Sustainability; and the in the Material Issues Grid (Figure 2). The full range of issues Dow Jones Sustainability Indexes. explored is found in Figure 3.
A detailed look at our material issues, including where the associated impacts occur and the relative level of control that Biogen can exert over these issues, is found in our Material Issues Grid We also conducted a review of topics covered by the following types of organizations: patient advocacy organizations in two of our main therapeutic areas, MS and hemophilia, and pharmaceutical and biopharmaceutical companies and associations.
Additionally, in 2014, we conducted a series of external interviews with representatives of three members of the investment community and six U.S.-based MS patient advocacy organizations for the specific purpose of informing the content of this report. Internally, in third quarter 2013, we conducted a materiality workshop with representation from virtually every area of our company and followed with 2014 MATERIALIT Y MATRIX FULL RANGE OF ISSUES/ IMPORTANCE TO KEY STAKEHOLDER GROUPS • Supply Chain ESG • R&D/Innovation • Patient Health Outcomes • Regulatory & Legal • Access to Treatment/Societal Climate Change Risk • Ethics/Governance • Stakeholder Engagement• Citizenship/Philanthropy • Environmental Impacts • Intellectual Property GHG Emissions/Air Pollution • New & Emerging Markets • Workforce Diversity • Labor Practices/Human Rights • Customer Relationship Patient Health Outcomes • Product Life Cycle Impact Customer Relationship Management • Senior Management/BOD • Talent Management • Political Contributions • Occupational Health, Safety & Disclosure & Labeling • CEO Compensation • Risk & Crisis Management Access to Services • Disclosure & Labeling • Green Chemistry/Green • Capital Allocation Training & Development Impact on Business CEO Compensation Occupational Health & Safety 2014 MATERIAL ISSUES GRID Product Societal Value Product Life Cycle Use Impact PATIENT HEALTH OUTCOMES Regulatory and Legal Challenges STAKEHOLDER ENGAGEMENT Capital Allocation Management Team/BOD PRODUCT SOCIETAL VALUE Risk & Crisis Management Stakeholder Engagement OCCUPATIONAL HEALTH & SAFETY Labor Practices/Human Rights Green Chemistry/Green Biology CUSTOMER RELATIONSHIP MANAGEMENT EMPLOYEE VOLUNTEERISM Employee Volunteerism Impact on Business Employee Wellness Political Contributions BIIB has high control or influence Impacts occur internally Intellectual Property BIIB has medium control or influence Impacts occur internally and externally BIIB has low control or influence Impacts occur externally Location and/or Description Strategy and Analysis CEO Letter; Citizenship & Sustainability Organizational Profile About Biogen World headquarters: Cambridge, Mass., United States International headquarters: Zug, Switzerland Publicly traded company listed on the NASDAQ Stock Exchange About Biogen; Citizenship & Sustainability; Improving Lives; About Biogen (Item 1, Pages 1-6) About Biogen; Acting Responsibly Approximately 6 percent of our employees are under a collective bargaining agreement. All of these employees work in our Hillerød, Denmark, manufacturing facility.
Citizenship & Sustainability (see value-chain diagram); Acting Responsibly Biogen experienced significant growth from 2013 to 2014. Total revenues increased from $6.9 billion to $9.7 billion. We changed our name from Biogen Idec to Biogen. Biogen acquired Convergence Pharmaceuticals for $200 million in cash and $475 million in potential milestone payments. Additionally, in 2014, we launched ALPROLIX and ELOCTATE for hemophilia and PLEGRIDY for MS. Biogen applies the precautionary approach by achieving carbon neutrality, ensuring the safety of patients, and performing detailed risk analyses related to our operations.
Acting Responsibly (Engaging with Stakeholders, Pharmaceutical Supply Chain Initiative, Animal Welfare; G4 Index – Labor Practices and Decent Work [DMA]) About This Report ages F19-F30, F46-F56) Citizenship & Sustainability; About This Report Location and/or Description Identified Material Aspects and Boundaries G4-19, G4-20, G4-21 Citizenship & Sustainability; About This Report Rethinking Resources (Status Change Leads to Innovation) Stakeholder Engagement G4-24, G4-25, G4-26, Improving Lives; Acting Responsibly; About This Report G4-28, G4-29, G4-30, About This Report G4-31, G4-32, G4-33 Biogen reports on its Corporate Citizenship commitment annually. Our most recent report prior to this report was released in June 2014.
Acting Responsibly Acting Responsibly Code of Business Conduct, (Page 26) G4-45, G4-46, G4-47 Acting Responsibly Our CEO, George A. Scangos, Ph.D., has affirmed that we have identified our most material citizenship and environmental sustainability issues in this report. A team of Biogen subject matter experts at the associate director, director, senior director and senior and executive vice president levels have approved the report content related to their areas of expertise.
G4-51, G4-52, G4-53 (Pages 12, 31-62) Location and/or Description Ethics & Integrity Specific Standard Disclosures Location and/or Description About Biogen (Page 35, F2-F8) (For details, see We have identified a number of potential risks associated with climate change, including: • Physical risk to property and employees, including increased droughts, hurricane severity, power or communications failures and flooding, which could affect our operations.
• Operating and financial risks, including extreme weather events and rising sea levels, that could disrupt transportation of goods/services/employees and physically impact our R&D and manufacturing sites. We could also be impacted financially if sectors we source from become subject to greenhouse gas regulations.
Also see our s.
In the United States, we do not have any defined benefit plan obligations. Outside of the United States, we make government- mandated pension contributions.
Acting Responsibly (Diversity at Biogen chart) About Biogen; Improving Lives (Hack MS, Believe and Achieve, Patient Services); Acting Responsibly Location and/or Description G4-EN1, G4-EN3, G4-EN4, Rethinking Resources G4-EN5, G4-EN6, G4-EN8, Note: All of our water is drawn from municipal sources. We do not G4-EN9, G4-EN10, believe we significantly affect any water sources, but continue to G4-EN15, G4-EN16, work to reduce our water consumption. G4-EN17, G4-EN18, assured by Trucost G4-EN19, G4-EN23, About This Report (description of external assurance) emissions (business travel only) assured by All other Scope 3 CO e emissions assured by Biogen did not have any significant spills in 2014.
We produce both chemical and medical waste, virtually all of which is incinerated for waste-to-energy purposes. We do not ship any Biogen reports emissions of CO e associated with its value chain. emissions (business travel only) assured by About This Report (description of external assurance) emissions (business travel only) assured by All other Scope 3 Location and/or Description Labor Practices and Decent Work Biogen follows laws, regulations and international conventions related to labor practices and ensuring decent work, including the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy and the Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises. Specific commitments to Respect in the Workplace and Workplace Health and Safety are outlined in our Code of Business Conduct, Values in Action. Employees are responsible for upholding the code. Suppliers are also subject to the code.
Acting Responsibly (partially reported) At our Hillerød, Denmark, facility, the minimum notice period is based on seniority and specified in the collective bargaining agreement. Notice periods may vary anywhere from one to six All Biogen employees receive a performance and career development review, annually.
Acting Responsibly (Diversity at Biogen chart); G4-HR4, G4-HR5, G4-HR6 We have not identified any owned operations or suppliers where there is a significant risk of human rights violations. Our major operations are not in areas considered to be at high risk. We are continuing to work to improve monitoring of human rights in our supply chain through participation in the Pharmaceutical Supply Chain Initiative.
Improving Lives Location and/or Description Product Responsibility All of our products are assessed for health and safety impacts. Due to the nature of our business, all of Biogen's products have stringent product information and labeling requirements. See the following for links to prescribing information for our marketed therapies: In 2013, Biogen engaged a third-party firm to measure patient and healthcare provider satisfaction with our company. While the results were quite positive, we consider the results proprietary and, as such, do not publicly report them.
Disclosures on Management Approach of Material Issues For each issue described below, see Por an explanation of why that issue has been identified as material to Biogen. Many of our most material issues are managed by multiple functions throughout the company, as referenced below. Location and/or Description Research and Development Improving Lives (R&D) and InnovationPatient Health Outcomes Improving Lives Access to Treatment/Promoting Improving Lives; Acting Responsibly Product Societal ValueEthics/Governance Acting Responsibly Stakeholder Engagement Improving Lives; Acting Responsibly; About This Report Citizenship & Philanthropy Improving Lives Environmental Impacts Intellectual Property Independent Assurance Statement to Biogen Inc.
ERM Certification and Verification Services, Inc. (ERM CVS) was engaged by Biogen Inc. (Biogen) to provide assurance in relation to its Net Zero Carbon Footprint assertion as reported on page 52 of the Committed to What Counts: 2014 Corporate Citizenship Report for the calendar year 2014. Engagement Summary
Whether Biogen's Net Zero Carbon Footprint assertion for the period 1st January 2014 – 31st December 2014 is, in all material respects, appropriately presented. The scope of assurance includes review of: Biogen's separately verified GHG Scope 1, 2 and 3 emissions as presented on 58 and 59 of the Committed to What Counts: 2014 Corporate Citizenship Report Biogen's Project Offsets, Renewable Energy Certificates and Guarantees of Origin (converted to tones co2e) as presented on 59 of the Committed to What Counts: 2014 Corporate Citizenship Report. The underlying calculations to achieve a Net Zero Carbon Footprint. "Appropriately presented" means we have assessed the selected data for reliability which includes: completeness (whether all relevant sources were captured); comparability (across locations and over time); and accuracy of calculations (including the use of appropriate formula, conversion factors, estimates and assumptions). Reporting criteria used:
Biogen Carbon Neutral Methodology Assurance standard
used:
ISO 14064-3:2006: Specification with guidance for the validation and verification of greenhouse gas assertions Assurance level:
Limited assurance To determine the extent of conformity of the GHG assertion with the reporting criteria, including the GHG information system and its controls/management; and to Objectives
confirm whether the GHG assertion is reported without material discrepancy and whether the verification activities provide the level of assurance agreed to. Biogen is responsible for preparing the data reported in the Committed to What Counts: 2014 Corporate Citizenship Report and for the collection and presentation Respective
of the information. ERM CVS's responsibility is to provide conclusions on the agreed scope based on the assurance activities performed and exercising our professional judgement. Our conclusions
The limitations of our engagement
Based on our activities, nothing has come to our attention to indicate that Biogen's Net The reliability of the assured data is subject to inherent uncertainties, given the available Zero Carbon Footprint assertion for the calendar year 2014 presented on page 52 of its methods for determining, calculating or estimating the underlying information. Committed to What Counts: 2014 Corporate Citizenship Report is not appropriately presented according to the reporting criteria. Based on the work outlined above, we have provided Biogen with a separate, Our assurance activities
confidential report detailing our assessment of its Net Zero Carbon Footprint assertion We planned and performed our work to obtain all the information and explanations that we for the reporting year 2014. believe were necessary to provide a basis for our assurance conclusions. A team of GHG and assurance specialists performed the following key activities: Confirming that Biogen's reported GHG Scope 1, 2 and 3 emissions were independently verified. Cross checking that the purchased Project Offsets, Renewable Energy Certificates and Guarantees of Origin were retired/managed according to Biogen's Carbon Neutral Methodology. Melanie Eddis, Partner A review of the calculations undertaken, including cross checking of the primary data. ERM Certification and Verification Services, Inc. An analytical review of the consolidated year end data www.ermcvs.com email: [email protected] ERM CVS is a member of the ERM Group. The work that ERM CVS conducts for clients is solely related to independent assurance activities and auditor training. Our processes are designed and implemented to ensure that the work we undertake with clients is free from bias and conflict of interest. ERM CVS and the staff that have undertaken work on this assurance exercise provide no consultancy related services to Biogen in any respect.

Source: https://www.biogen.hu/content/dam/corporate/en_us/pdfs/corporate-citizenship-report/BiogenCCR2014.pdf