Biogen Inc.
Biotechnology and PharmaceuticalsFounded 1978- Updated June 2025
Reviewed by Swet Parvadiya
Last reviewed: June 2025
CorpDigest
Biogen Inc.
Company History
Founded 1978 in Cambridge, Massachusetts
Last reviewed: 2025-06-08 · By Swet Parvadiya
Geneva, 1978. Phillip Sharp of MIT, Walter Gilbert of Harvard, and Charles Weissmann of the University of Zurich — three of the most prominent molecular biologists in the world — co-founded a research company to explore whether recombinant DNA technology could be translated into commercial medicines. The founding scientific team was extraordinary even by biotechnology standards; both Sharp and Gilbert would subsequently receive Nobel Prizes for work unrelated to Biogen, which says something about the caliber of scientific judgment the company was built on.
The early years focused on interferon — a protein that appeared to have antiviral and potentially anticancer properties — before the field pivoted toward understanding which proteins the human immune system produced in disease states and whether synthetic versions could treat those diseases. Multiple sclerosis emerged as the primary focus because the immune system dysregulation that characterizes MS was accessible to biological therapy in ways that neurodegenerative diseases were not.
Avonex, a form of interferon beta-1a, received FDA approval in 1991 for relapsing forms of multiple sclerosis. It was the first effective biological treatment for MS and transformed Biogen from a research-stage company into a commercial pharmaceutical enterprise. The drug generated billions in annual revenue at its peak and funded the research infrastructure that produced subsequent neurological assets.
The 2003 approval of Tysabri, an antibody that reduced MS relapse rates more dramatically than interferon-based therapies, initially appeared to be the next breakthrough — until post-market surveillance identified a rare but fatal brain infection called PML as a side effect. The FDA mandated a risk mitigation program that required specialized monitoring and restricted prescribing. Tysabri survived as a treatment for patients with aggressive MS who accepted the PML risk, but its commercial trajectory was permanently constrained.
Ken Murray was a pioneering geneticist at the University of Cambridge who recognized that the emerging field of genetic engineering held the potential to revolutionize the treatment of human disease. His decision to co-found Biogen in 1978 was driven by the explicit goal of applying industrial manufacturing principles to the production of recombinant DNA therapies, ensuring that every batch contained a precise, standardized dose of the active compound. This focus on standardization was not merely a quality control measure; it was a revolutionary business strategy that allowed the company to build brand trust, scale production, and establish a distribution network that would eventually span the globe. Murray's shrewd scientific acumen and his willingness to invest heavily in proprietary manufacturing processes allowed the young company to carve out a niche in the growing market for recombinant DNA therapies, despite intense competition from established chemical manufacturers. His leadership laid the groundwork for the company's subsequent pivot to the industrial production of interferon beta in the 1980s, a move that would transform the company into a global biopharmaceutical powerhouse and generate the massive cash flows that funded its entry into the neurodegeneration and rare disease markets. Murray's legacy is defined by his understanding that the future of healthcare lay in bringing scientific rigor and industrial efficiency to the business of human health, a philosophy that remains the bedrock of the organization's operations today.
Ken Murray, Phillip Sharp, Walter Gilbert, and Charles Weissmann founded Biogen in Geneva, Switzerland, with the explicit vision of applying recombinant DNA technology to the development of novel human therapeutics, establishing the foundational business model of scalable, reliable biologic manufacturing.
Biogen completed its initial public offering, raising significant capital to fund the expansion of its global manufacturing footprint and the acceleration of its R&D pipeline in recombinant DNA therapies.
The FDA approved Avonex (interferon beta-1a) for the treatment of relapsing forms of multiple sclerosis, establishing the organization's leadership in the neurotherapeutics market and generating billions of dollars in annual revenue.
The FDA approved Tysabri (natalizumab) for the treatment of multiple sclerosis, representing a major breakthrough in neurology and a potential blockbuster asset for the organization, though it was later temporarily withdrawn due to safety concerns.
The organization entered into a strategic partnership with Ionis Pharmaceuticals to develop and commercialize Spinraza (nusinersen) for spinal muscular atrophy, securing exclusive rights to the first FDA-approved therapy for this devastating rare disease.
The FDA approved Aduhelm (aducanumab) for Alzheimer's disease despite strong opposition from its own advisory committee, sparking intense regulatory scrutiny and reputational damage that ultimately led to the discontinuation of the program.
The FDA approved Skyclarys (omaveloxolone) for the treatment of Friedreich's ataxia, representing a major breakthrough in rare neurology and a potential blockbuster asset for the organization.
The FDA granted full approval to Leqembi (lecanemab) for the treatment of early Alzheimer's disease, in a strategic partnership with Eisai, establishing the organization's leadership in the neurodegeneration market.
The organization reported consolidated net revenues of $9.62 billion for FY2024, with the Pharmaceuticals division contributing the vast majority of this total through the sale of high-margin biologics, small molecules, and targeted therapies, while allocating approximately $3.24 billion to research and development.
Christopher Viehbacher assumed the role of Chief Executive Officer in September 2024, bringing deep industry experience and a renewed focus on operational excellence and pipeline innovation.
The organization entered into a strategic partnership with Eisai to co-develop and co-commercialize Leqembi for Alzheimer's disease, securing exclusive rights to the anti-amyloid monoclonal antibody in the US and select other markets.
The organization entered into a strategic partnership with Ionis Pharmaceuticals to develop and commercialize Spinraza for spinal muscular atrophy, securing exclusive rights to the first FDA-approved therapy for this devastating rare disease.
The organization internally developed Skyclarys for the treatment of Friedreich's ataxia, securing exclusive rights to the first FDA-approved therapy for this devastating rare neurological disorder.
Biogen was founded in 1978 in Geneva, Switzerland by a group of scientists including Walter Gilbert (later Nobel laureate), Phillip Sharp (later Nobel laureate), and other molecular biology pioneers, making it one of the earliest biotechnology companies alongside Genentech (1976) and Amgen (1980). The founders bet that recombinant DNA technology could produce therapeutic proteins at commercial scale, and Biogen's early products included interferon-based hepatitis treatments. The company moved its headquarters to Cambridge, Massachusetts in 1982 to be near MIT and Harvard, establishing the Kendall Square biotech cluster, and merged with IDEC Pharmaceuticals in 2003 for $6.5 billion to combine multiple sclerosis and oncology franchises into Biogen Idec (later renamed Biogen).
Biogen launched Tecfidera (dimethyl fumarate) in March 2013 as an oral multiple sclerosis treatment, generating $4.4 billion in peak annual sales by 2019 and establishing Biogen as the dominant MS company alongside Tysabri and Plegridy. Tecfidera's once-daily oral dosing offered convenience over injectable MS drugs, and Biogen's commercial execution captured 40%+ of new MS prescriptions globally during 2014-2018. However, Tecfidera lost a critical patent battle in June 2020 when the Federal Circuit invalidated its primary patent, allowing generic competition that collapsed revenue 50% within 12 months — from $4.4 billion to under $2 billion by 2022 — creating the revenue cliff that defined Biogen's subsequent strategic crisis.
Biogen's Alzheimer's drug Aduhelm (aducanumab) received highly controversial FDA accelerated approval in June 2021 despite an FDA advisory committee voting 10-1 against approval and three committee members resigning in protest. The drug's $56,000 annual price triggered immediate backlash from Medicare, and CMS restricted coverage to clinical trials only — effectively ending commercial viability. Biogen recorded just $3 million in Aduhelm sales in 2021 versus $1+ billion projections, and ultimately discontinued the drug in January 2024, taking $500+ million in impairments. The episode triggered Congressional investigations into FDA's approval process, damaged Biogen's regulatory credibility, and validated critics who argued FDA had bent rules for a drug with marginal efficacy evidence.
Biogen and partner Eisai launched Leqembi (lecanemab) in 2023 as a successor Alzheimer's drug after Aduhelm's failure, with stronger Phase 3 efficacy data showing 27% slowing of cognitive decline and traditional FDA approval rather than accelerated. Priced at $26,500 annually — less than half Aduhelm's cost — Leqembi gained Medicare coverage but slow commercial uptake due to required MRI monitoring, IV infusion infrastructure, and specialist diagnosis requirements that limit which patients can access it. Biogen and Eisai split Leqembi profits, and the drug generated approximately $200 million in 2024 with consensus estimates targeting $5+ billion peak annual sales by 2030 — potentially restoring Biogen's growth trajectory if real-world uptake matches projections.
Biogen received US Food and Drug Administration approval for Avonex on 17 May 1996, marking the first time the 18-year-old company had ever commercialised a drug under its own label rather than licensing molecules to partners like Schering-Plough, which had marketed Biogen's interferon alpha as Intron A since 1986. Avonex, a weekly intramuscular injection of interferon beta-1a for relapsing multiple sclerosis, was developed in Biogen's Cambridge labs by a team led by chief scientific officer Burt Adelman and launched at a list price of about $8,723 per patient per year. The drug captured the MS market within 18 months, displacing Berlex's Betaseron, and pushed Biogen to its first profitable year in 1996 with net income of $40.5 million on revenue of $277 million. Avonex sales reached $395 million in 1998 and $1 billion by 2002, funding a 1,200-employee buildup of commercial infrastructure and a new manufacturing plant in Research Triangle Park, North Carolina, that came online in 2001. The financial firepower from Avonex underwrote the November 2003 merger with IDEC Pharmaceuticals to form Biogen Idec, valued at $6.4 billion in stock, and bankrolled the 2004 launch of Tysabri, establishing the neurology franchise that defines Biogen's identity today and still generates more than half of group revenue.