Fueling Biogen’s growth
From the beginning, Avonex exceeded expectations.
By 2001, Avonex was generating $972 million in revenues for Biogen. That figure reached $3 billion last year, or 43 percent of the company’s $6.9 billion in total revenue. “Avonex, we still say, turns the lights on at Biogen,” Munschauer said.
Biogen, now Biogen Idec following a 2003 acquisition, bills itself as the oldest, independent biotech company in the world. It has 7,000 employees in Massachusetts, North Carolina and its other global locations, and its stock trades at more than $300 per share.
Avonex was successful in large part because it was patient-friendly.
Interferons, when injected under the skin, can create an intense, local immune reaction. Patients who injected interferon subcutaneously, would get painful, embarrassing welts, in addition to other side effects such as feeling chills or flulike symptoms, up to several times a week.
Avonex was developed as a once-a-week, intramuscular injection, which avoids bruising at the injection site and limits the other symptoms to once a week.
“We didn’t even appreciate the value patients put on less dosing. But with Avonex – once a week, no skin reactions – you’re starting to say, ‘You know, I only have to think about my disease once a week,’ ” said Dr. Burt A. Adelman, a former Biogen executive, who fondly remembers “The Jake” as a classical music and opera buff with a limited knowledge of rock and roll. (When Adelman mentioned an upcoming Boston concert by Bruce Springsteen, Jacobs said, “Who’s that?”)
Over time, Biogen has further improved the drug, developing an auto-injector and pre-filled syringe that make it even easier to use. Today, a one-year supply of Avonex has a manufacturer’s list price of $62,036.
Palloni, the MS patient from Batavia, was a patient of Munschauer’s when she took part in the clinical testing of Avonex. During her exacerbations, she would feel tired and weak in her legs. “I’m thrilled with the Avonex, because it has helped me. It has stabilized me,” Palloni said.
Now 62 and a patient of Weinstock-Guttman’s, Palloni remains on Avonex. The treatment allows her to garden, lift weights, in-line skate, ride her bike and do pilates. “They always say, how do you know it’s working? Well, if you don’t have a flare-up, it’s working,” she said.
The marketplace is far more crowded with MS treatment options today. But the success of Avonex has allowed Biogen to pump hundreds of millions of dollars into the development of other drugs, including their Tysabri, Tecfidera and Plegridy MS treatments, and has the company prepared for life after its Avonex patent expires in 2026.
“Avonex has enabled us to grow as a company, grow a global footprint I think, which has allowed us to help far more patients with MS than we probably ever thought we would,” said Francis, the former Biogen Idec senior vice president.
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