Biogen Inc.'s net income for the second quarter of 1993increased eightfold over the same period in 1992. The companyon Thursday reported earnings of $5.6 million, or 17 cents pershare, compared to $665,000, or 2 cents per share, in thecomparable 1992 period.

The higher earnings came from significant increases in royaltyrevenues (total revenues for the second quarter were $37.9million, compared with $20.9 million in 1992), largely due tocontinuing strong sales by licensees of Intron A alphainterferon (Schering Plough Corp.) and hepatitis B vaccines(SmithKline Beecham; Merck & Co. is a sublicensee).

Biogen (NASDAQ:BGEN) of Cambridge, Mass., explained that thequarterly results also reflect a one-time charge of $4.3 millionfor certain obligations prior to 1993 as a result of the recentlyannounced patent settlement between Schering-Plough andGenentech. As per the terms of the settlement (see BioWorld,July 15), Schering will pay Genentech some $18.2 million infixed license fees through 1996.

According to James Vincent, Biogen's chief executive officer,"The financial impact of the Genentech-Schering licensingagreement is not expected to be significant to our company, asthe total future obligation to Genentech is capped by agreementat less than $11 million through 1996. Biogen and Schering-Plough have not yet reached agreement as to the allocation ofthat cost between our two companies."

Biogen's stock closed at $29.75 a share on Thursday, down 50cents. -- Jennifer Van Brunt

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