Biogen Idec 8-K 2005
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:
September 7, 2005
(Date of earliest event reported)
Biogen Idec Inc.
(Exact name of Registrant as specified in its Charter)
14 Cambridge Center
Cambridge, Massachusetts 02141
(Address of principal executive offices, including zip code)
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
Table of Contents
Item 1.01 Entry into a Material Definitive Agreement
On September 8, 2005, Biogen Idec Inc. (the Company), announced that Michael Gilman, the Companys Executive Vice President, Research, is leaving the Company, effective November 8, 2005. In connection with his departure, Dr. Gilman will receive severance and other benefits under the Companys Executive Severance Policy, as amended.
Item 2.05 Costs Associated with Exit or Disposal Activities
On September 7, 2005, a special Committee of the Companys Board of Directors approved and adopted a comprehensive strategic plan aimed at positioning the Company for long-term growth (the Plan). The Plan has three principal elements:
The Plan includes a reduction of the Companys workforce by 17%, or approximately 650 positions worldwide. The Company estimates that it will incur approximately $30 million to $40 million of costs in connection with the workforce reduction, almost all of which are costs related to severance and associated staff restructuring. The Company expects to record the majority of these costs as a pre-tax charge in the third quarter of 2005. The Company expects that the workforce reduction will be substantially implemented by the end of 2005 and that most of the costs will be paid out by the end of the second quarter of 2006.
A copy of the Companys press release announcing the Plan is attached hereto as Exhibit 99.1 (the Press Release).
* * * * *
This report contains forward-looking statements, including but not limited to, statements regarding the Plan, the impact of the Plan on the Company, the expenses the Company expects to incur in connection with the Plan, and the timing of the pre-tax charges the Company expects to take in connection with the Plan. These statements are based on the Companys current beliefs and expectations as to future outcomes and are not guarantees of future performance. There are a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expected, including but not limited to, unexpected expenditures, costs and charges related to the Plan. For more detailed information on the risks and uncertainties associated with the Companys business activities, see the reports the Company files with the SEC from time to time, including the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2005. The Company undertakes no obligation to publicly update any forward-
looking statements made in this report, whether as a result of new information, future events, or otherwise.
Item 9.01 Financial Statements and Exhibits
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: September 13, 2005