SECURITIES AND EXCHANGE COMMISSION      Total Pages-   15
                             WASHINGTON, D.C. 20549            Exhibit Index- 14


                                    FORM 10-Q
(Mark one)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities  Exchange
Act of 1934

For the quarterly period ended       March 31, 1998

                                       OR

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934

For the transition period from                   to

                         Commission File Number 0-12042



                                  BIOGEN, INC.


             (Exact name of registrant as specified in its charter)


            Massachusetts                              04-3002117
  (State or other jurisdiction of       (I.R.S. Employer Identification No.)
  incorporation or organization)

 14 Cambridge Center, Cambridge, MA                  02142
(Address of principal executive offices)          (Zip Code)


         Registrant's telephone number, including area code:  (617) 679-2000

         Former name, former address and former fiscal year, if changed since
last report:   Not Applicable


         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.
                                                          Yes  X    No

         Number of shares  outstanding of each of the issuer's classes of common
stock, as of May 1, 1998:

     Common Stock, par value $0.01                     73,707,924
          (Title of each class)                   (Number of Shares)




<PAGE>
                                                                          Page 2



                             B I O G E N , I N C .


                                      INDEX

                                                                        Page No.

PART I - FINANCIAL INFORMATION

     Condensed Consolidated Statements of Income -
       Three months ended March 31, 1998 and 1997..............................3

     Condensed Consolidated Balance Sheets -
       March 31, 1998 and December 31, 1997....................................4

     Condensed Consolidated Statements of Cash Flows -
       Three months ended March 31, 1998 and 1997..............................5

     Notes to Condensed Consolidated Financial Statements......................6

     Management's Discussion and Analysis of Financial
       Condition and Results of Operations.....................................9




PART II - OTHER INFORMATION...................................................13



                       * * * * * * * * * * * * * * * * * *












Note concerning trademark: AVONEX(R) is a trademark of Biogen, Inc.



<PAGE>
                                                                          Page 3

<TABLE>

                          BIOGEN, INC. AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (unaudited)
                    (in thousands, except per share amounts)


<CAPTION>

                                                   Three months ended
                                                        March 31,
                                                   1998            1997
<S>                                               <C>           <C>
REVENUES

  Product . . . . . . . . . . . . . . . . . . . . $ 76,100      $ 52,616
  Royalties . . . . . . . . . . . . . . . . . . .   38,372        42,215
  Interest. . . . . . . . . . . . . . . . . . . .    6,968         4,907
                                                  --------      --------
  Total revenues. . . . . . . . . . . . . . . . .  121,440        99,738
                                                  --------      --------
EXPENSES

  Cost of sales . . . . . . . . . . . . . . . . .   14,873        11,744
  Research and development. . . . . . . . . . . .   37,120        37,908
  Selling, general and administrative . . . . . .   26,003        21,164
  Other, net .. . . . . . . . . . . . . . . . . .       46           334
                                                  --------      --------
  Total expenses. . . . . . . . . . . . . . . . .   78,042        71,150
                                                  --------      --------
INCOME BEFORE INCOME TAXES. . . . . . . . . . . .   43,398        28,588

Income taxes. . . . . . . . . . . . . . . . . . .   15,627        11,578
                                                  --------      --------
NET INCOME. . . . . . . . . . . . . . . . . . . . $ 27,771      $ 17,010
                                                  ========      ========

BASIC EARNINGS PER SHARE. . . . . . . . . . . . . $   0.38      $   0.23
                                                  ========      ========
DILUTED EARNINGS PER SHARE. . . . . . . . . . . . $   0.36      $   0.22
                                                  ========      ========
SHARES USED IN CALCULATING:

  BASIC EARNINGS PER SHARE. . . . . . . . . . . .   73,935        73,268
                                                  ========      ========
  DILUTED EARNINGS PER SHARE. . . . . . . . . . .   76,854        76,843
                                                  ========      ========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</FN>
</TABLE>


<PAGE>
                                                                          Page 4


<TABLE>

                          BIOGEN, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
<CAPTION>
                                             March 31,1998     Dec. 31,1997
                                             (unaudited)
<S>                                              <C>           <C>
ASSETS
  Current assets
   Cash and cash equivalents . . . . . . . . . . $  65,602     $   70,358
   Marketable securities. . . . . . . . . . .  .   392,737        369,730
   Accounts receivable, net . .  . . . . . . . .    74,034         86,802
   Deferred tax asset. . . . . . . . . . . . . .    27,951         37,203
   Other current assets. . . . . . . . . . . . .    38,406         31,973
                                                  --------       --------
   Total current assets. . . . . . . . . . . . .   598,730        596,066
                                                  --------       --------
  Property, plant and equipment
   Cost. . . . . . . . . . . . . . . . . . . . .   245,065        240,513
   Less accumulated depreciation . . . . . . . .    71,264         66,021
                                                  --------       --------
   Property, plant and equipment, net. . . . . .   173,801        174,492
                                                  --------       --------
  Other assets
   Patents, net. . . . . . . . . . . . . . . . .    15,629         14,935
   Marketable securities . . . . . . . . . . . .    28,589         17,095
   Other . . . . . . . . . . . . . . . . . . . .     7,042         11,237
                                                  --------       --------
   Total other assets. . . . . . . . . . . . . .    51,260         43,267
                                                  --------       --------
                                                 $ 823,791      $ 813,825
                                                  ========       ========
LIABILITIES AND SHAREHOLDERS' EQUITY
  Current liabilities
    Accounts payable . . . . . . . . . . . . . . $  16,410      $  15,820
    Note payable . . . . . . . . . . . . . . . .    23,301         24,817
    Current portion of long-term debt. . . . . .     4,888          4,888
    Accrued expenses and other . . . . . . . . .    70,850         78,358
                                                  --------       --------
    Total current liabilities. . . . . . . . . .   115,449        123,883
                                                  --------       --------
  Long-term debt, less current portion. . . . ..    61,041         61,846
  Other long term liabilities. . . . . . . . . .    15,497         15,132
  Put options. . . . . . . . . . . . . . . . . .    56,670         76,671
  Commitments and contingencies. . . . . . . . .

  Shareholders' equity:
    Common stock . . . . . . . . . . . . . . . .       741            741
    Additional paid in capital . . . . . . . . .   512,475        516,880
    Retained earnings . . . .  . . . . . . . . .    73,099         25,327
    Unrealized losses on
     marketable securities . . . . . . . . . . .     (911)        (2,233)
    Cumulative translation adjustment. . . . . .     (114)           (37)
    Treasury stock, at cost. . . . . . . . . . .  (10,156)        (4,385)
                                                  --------       --------
    Total shareholders' equity . . . . . . . . .   575,134        536,293
                                                  --------       --------
                                                 $ 823,791      $ 813,825
                                                  ========       ========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</FN>
</TABLE>


<PAGE>
                                                                          Page 5


<TABLE>

                          BIOGEN, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                 (in thousands)
<CAPTION>
                                                     Three months ended
                                                          March 31,
                                                      1998        1997
<S>                                                 <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income. . . . . . . . . . . . . . . . . . . . $ 27,771    $ 17,010
  Adjustments to reconcile net income to net
    cash provided from operating activities:
  Depreciation and amortization . . . . . . . . .      5,629       4,357
  Deferred income taxes . . . . . . . . . . . . .      8,506     (10,617)
  Other . . . . . . . . . . . . . . . . . . . . .        756       2,217
  Changes in:
    Accounts receivable . . . . . . . . . . . . . .   12,768        (851)
    Other current and other assets. . . . . . . . .   (6,536)     (2,831)
    Accounts payable, accrued expenses and
     other current and long term liabilities. . . .   (6,553)     (3,513)
                                                     --------   --------
  Net cash provided from operating activities.. . .   42,341       5,772
                                                    --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES
  Purchases of marketable securities. . . . . . . . (222,523)    (95,239)
  Proceeds from sales and maturities of
    marketable securities. . . . . . . . . . . . . . 198,931     106,518
  Investment in collaborative partners. .  . . .  .   (5,000)    (10,000)
  Acquisitions of property and equipment. . . . . .   (4,388)     (8,525)
  Additions to patents. . . . . . . . . . . . . . .   (1,505)     (2,531)
                                                    --------    --------
  Net cash used by investing activities . . . . . .  (34,485)     (9,777)
                                                    --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
  Repayments of note payable. . . . . . . . . . . .   (1,516)          -
  Proceeds from issuance of long-term debt. . . . .       -        4,545
  Repayments of long-term debt. . . . . . . . . . .     (805)          -
  Purchases of treasury stock. . . . . . . . . .  .  (21,500)          -
  Tax benefit related to stock options. . . . . . .    3,944      20,117
  Issuance of common stock and option exercises . .    7,265      18,783
                                                    --------    --------
    Net cash (used by) provided from
    financing activities. . . . . . . . . . . . . .  (12,612)     43,445
                                                    --------    --------
NET (DECREASE) INCREASE IN CASH
  AND CASH EQUIVALENTS. . . . . . . . . . . . . . .   (4,756)     39,440

CASH AND CASH EQUIVALENTS,
  BEGINNING OF PERIOD . . . . . . . . . . . . . . .   70,358      62,032
                                                    --------    --------
CASH AND CASH EQUIVALENTS,
  END OF PERIOD . . . . . . . . . . . . . . . . . . $ 65,602    $101,472
                                                    ========    ========
<FN>
See Notes to Condensed Consolidated Financial Statements.
</FN>
</TABLE>


<PAGE>
                                                                          Page 6



                          BIOGEN, INC. AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)

1.       In the opinion of  management,  the  accompanying  unaudited  condensed
         consolidated  financial statements include all adjustments,  consisting
         of only normal  recurring  accruals,  necessary  to present  fairly the
         financial  position,  results of  operations  and cash flows of Biogen,
         Inc. and its  subsidiaries  (the "Company").  The Company's  accounting
         policies  are  described  in  the  Notes  to   Consolidated   Financial
         Statements  in the Company's  1997 Annual Report on Form 10-K.  Interim
         results are not necessarily indicative of the operating results for the
         full year.

         The  preparation of financial  statements in conformity  with generally
         accepted  accounting  principles  requires management to make estimates
         and  assumptions  that  affect  the  reported  amounts  of  assets  and
         liabilities and disclosure of contingent  assets and liabilities at the
         date of the financial statements,  and the reported amounts of revenues
         and expenses during the reporting  period.  Actual results could differ
         from those estimates.

         In June 1997, the Financial Accounting Standards Board issued Statement
         of Financial Accounting  Standards Number 130 "Reporting  Comprehensive
         Income"("SFAS  130") and  Statement of Financial  Accounting  Standards
         Number 131  "Disclosures  about  Segments of an Enterprise  and Related
         Information" ("SFAS 131"). The Company adopted SFAS 130 and SFAS 131 on
         January  1,  1998.  SFAS  130   establishes   standards  for  reporting
         comprehensive  income and its components in the consolidated  financial
         statements.  Comprehensive  income for the three months ended March 31,
         1998 was $29 million.  SFAS 131  establishes  standards  for  reporting
         information  on  operating  segments  in interim  and annual  financial
         statements.

         Below is a summary of the shares used in calculating  basic and diluted
         earnings per share for the quarters ended March 31,:
         <TABLE>
         <CAPTION>

                                                    (In Thousands)
                                                  1998           1997
         <S>                                      <C>            <C>
         Weighted average number of shares of
           common stock outstanding. . . . . . .  73,935         73,268
         Dilutive stock options. . . . . . . . .   2,919          3,575
                                                  ------         ------
         Shares used in calculating diluted
           earnings per share. . . . . . . . . .  76,854         76,843
                                                  ======         ======
         </TABLE>

2.       As of March 31, 1998, the Company had $20.8 million outstanding under a
         term loan secured by a  laboratory  and office  building in  Cambridge,
         Massachusetts.  Principal  payments of $833,000  are due  semi-annually
         through 2004 with the balance due on May 8, 2005.

         As of March 31, 1998, the Company had $45.1 million outstanding under a
         loan  agreement  with a bank  for  financing  the  construction  of the
         Company's  biological  manufacturing  facility in North  Carolina  (the
         "Construction Loan"). The Construction Loan is secured by the

<PAGE>
                                                                          Page 7


         facility.  Payments of $805,000  million are due  quarterly  through
         2006 with the balance due on March 31, 2007.

         Terms of the  loan  agreements  include  various  covenants,  including
         financial  covenants which require the Company to maintain  minimum net
         worth, cash flow and various financial ratios.

3.       Inventories,  which are included in other current assets, are stated at
         the  lower  of  cost  or  market   with  cost   determined   under  the
         first-in/first-out  ("FIFO") method.  Raw materials  include  inventory
         used in the production of pre-clinical and clinical  products which are
         expensed as research and development costs when consumed.  Inventories,
         net of  applicable  reserves  and  allowances,  at March  31,  1998 and
         December 31, 1997 are as follows:
         <TABLE>
         <CAPTION>

                                         (In Thousands)
                                 March 31, 1998     Dec. 31, 1997
            <S>                      <C>               <C>
            Raw materials            $ 4,001           $ 4,957
            Work in process           16,614             8,132
            Finished goods             7,336             9,870
                                     --------         --------
                                     $27,951           $22,959
                                     ========         ========
         </TABLE>

4.       On July 3, 1996, Berlex Laboratories, Inc. ("Berlex") filed suit
         against Biogen in the United States District Court for the District of
         New Jersey alleging infringement by Biogen of Berlex's "McCormick"
         patent in the United States in the production of Biogen's AVONEX(R)
         (Interferon beta-1a).  Berlex seeks a judgment granting it damages, a
         trebling of any damages awarded and a permanent injunction restraining
         Biogen from the alleged infringement.  An unfavorable ruling in the
         Berlex suit could have a material adverse effect on the Company's
         results of operations and financial position.  The Company believes
         that it has meritorious defenses to the Berlex claim; however, the
         ultimate outcome is not determinable at this time. Prior to the date of
         the suit filed by Berlex on the McCormick patent, Biogen had filed a
         suit against Schering AG ("Schering"), Berlex and the Board of Trustees
         of the Leland Stanford Jr. University ("Stanford") in the United States
         District Court for the District of Massachusetts for a declaratory
         judgment of non-infringement and invalidity of the McCormick patent
         contending that AVONEX(R), its manufacturing process and intermediates
         used in that process do not infringe the McCormick patent and that such
         patent is not valid.  In November 1996, the U.S. District Court in
         Massachusetts ruled that it had jurisdiction and Berlex's New Jersey
         action was transferred to Massachusetts and consolidated for pre-trial
         purposes with the Massachusetts case. In February 1997, the U.S.
         District Court in Massachusetts dismissed Biogen's declaratory judgment
         action as to Schering without prejudice if such dismissal is later
         shown to result in an injustice to Biogen.  Biogen and Stanford
         subsequently entered into an agreement voluntarily dismissing Stanford
         from the suit.  The suit involving Berlex is still pending.  A trial is
         not expected before the early part of 1999.

         In  June  1996,  ASTA  Medica  Aktiengesellschaft  ("ASTA")  filed  for
         arbitration  against Biogen with the International  Chamber of Commerce
         ("ICC") in connection  with a dispute with Biogen  regarding a License,
         Development and Supply Agreement, dated May 30, 1989 (the "1989

<PAGE>
                                                                          Page 8


         Agreement"),  among Biogen, ASTA and Bioferon  Biochemische  Substanzen
         GmbH & Co ("Bioferon"). Bioferon was a joint venture between Biogen and
         Rentschler Arzneimittel GmbH & Co. of Laupheim,  Germany, which entered
         bankruptcy  in  1993.  In  the   proceeding,   ASTA  had  asked  for  a
         determination  that Biogen could not terminate the 1989 Agreement as to
         ASTA  solely  as a  result  of  Bioferon's  bankruptcy  and  a  further
         determination  that Biogen was required to supply ASTA with recombinant
         beta  interferon.  On March 13, 1998, the ICC  arbitration  panel ruled
         that, as between Biogen and ASTA, the 1989 Agreement was not terminated
         as a result of the  bankruptcy  of  Bioferon,  but that  Biogen was not
         required to perform  Bioferon's  obligations  under the 1989  Agreement
         and,  as a  result,  had  no  obligation  to  supply  recombinant  beta
         interferon  to ASTA.  Under the 1989  Agreement,  ASTA was  granted  an
         exclusive  license  for a  number  of  European  countries  to  certain
         intellectual   property   relating  to  recombinant   beta  interferon,
         including  Biogen's  European Fiers patent which has since been revoked
         by the European Patent Office. In light of the panel's decision, Biogen
         has notified ASTA that it has terminated  the 1989  Agreement  based on
         ASTA's conduct and failure to perform. On March 19, 1998, ASTA notified
         Biogen that it deemed Biogen's  termination of the 1989 Agreement to be
         invalid.

         During the fourth quarter of 1994, a total of six class action lawsuits
         were  initiated  against  Biogen  and  several  of  its  directors  and
         officers. On March 3, 1995, these cases were consolidated into a single
         proceeding  in the United  States  District  Court for the  District of
         Massachusetts.  On January 23, 1996,  in response to motions to dismiss
         the  entire  case filed by Biogen and the named  officer  and  director
         defendants,  the District  Court issued a Memorandum  and Order,  dated
         January  22,  1996,  dismissing  most  of the  claims  asserted  in the
         plaintiffs'  Second  Amended  Complaint,  including all claims  against
         Biogen's  outside  directors.  The only  claims  remaining  in the case
         pertain to a statement  concerning the results of the HIRULOG(R) TIMI-7
         clinical trials in unstable angina.  The Court did not reach a decision
         on the merits of these  claims.  On October 11,  1996,  Biogen  filed a
         motion for summary  judgment in the case.  On  September  4, 1997,  the
         Court  denied the motion but narrowed the  plaintiff  class.  On May 6,
         1998 a jury found in favor of Biogen --  rejecting  all claims  against
         the company.

5.       Income tax  expense as a percent  of  pre-tax  income for the  quarters
         ended  March 31,  1998 and 1997 was 36% and  40.5%,  respectively.  The
         effective tax rate varied from the U.S.  statutory rates in the current
         quarter  primarily  due  to an  increase  in  European  sales  and  the
         utilization of research and development  credits. The effective rate in
         the first quarter of 1997 varied from U.S.  statutory  rates  primarily
         due to the benefit of  research  and  development  and  investment  tax
         credits  partially  offset by  foreign  losses  for  which the  Company
         received no tax benefit.


<PAGE>
                                                                          Page 9


                          BIOGEN, INC. AND SUBSIDIARIES

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Overview

Biogen,  Inc.  (the  "Company"  or  "Biogen")  is  a  biopharmaceutical  company
principally  engaged in the business of developing,  manufacturing and marketing
drugs for human health care. The Company  currently  derives revenues from sales
of  AVONEX(R)  (Interferon  beta-1a) for the  treatment  of  relapsing  forms of
multiple sclerosis ("MS") and from royalties on worldwide sales by the Company's
licensees  of a number of  products  covered  under  patents  controlled  by the
Company,  including  alpha  interferon  and hepatitis B vaccines and  diagnostic
products.

Results of Operations

For the quarter ended March 31, 1998,  the Company  reported net income of $27.8
million  or $0.36 per  diluted  share as  compared  to $17  million or $0.22 per
diluted share for the comparable period of 1997.

Total revenues for the current quarter were $121.4 million, as compared to $99.7
million in the quarter  ended March 31,  1997,  an increase of $21.7  million or
22%. The increase in total revenues was primarily due to increased  sales of the
Company's  product  AVONEX(R).  Product sales for the current quarter were $76.1
million as  compared  to $52.6  million for the  comparable  period of 1997,  an
increase of $23.5  million or 45%.  The growth in 1998 was due to an increase in
the sales volume of  AVONEX(R)in  the United  States as well as  expansion  into
several new countries in the European  Union ("EU").  In March 1997, the Company
received regulatory approval to market AVONEX(R) in the fifteen member countries
of the EU. By the end of 1997, AVONEX(R) had received reimbursement approval and
was on the market in all of the EU  countries.  AVONEX(R)  sales  outside of the
United States were  approximately $13 million in the current quarter as compared
to $3 million in the comparable period of 1997.  Revenues from royalties for the
current  quarter  were  $38.4  million  as  compared  to $42.2  million  for the
comparable quarter of 1997, a decrease of $3.8 million or 9%. Royalty revenue in
1997 included a $2 million one-time license payment from The Medicines Company.

The Company  expects product sales as a percentage of total revenues to increase
in the near term as the Company  continues to market  AVONEX(R)  worldwide.  The
Company  expects  sales from  AVONEX(R) in Europe to increase as a percentage of
total product sales.  The Company also received  approval to market AVONEX(R) in
Canada on April 6,  1998.  The  Company,  however,  expects  to face  increasing
competition in the MS marketplace from other current and expected MS treatments.
In the near term,  the Company  expects  overall sales of licensee  products and
royalty revenues to fluctuate depending on changes in sales volumes for specific
products,  patent  expirations,  new  licensing  arrangements,  if any, or other
developments.  Licensee  sales levels may also fluctuate from quarter to quarter
due to the timing and extent of major events such as new indication approvals or
vaccination programs.

Interest  income for the current  quarter  was $7  million,  an increase of $2.1
million or 43% as compared to $4.9 million in the comparable period of

<PAGE>
                                                                         Page 10


1997. The increase in interest income is primarily a result of increased  levels
of invested funds.

Total  expenses  for the current  quarter  were $78 million as compared to $71.2
million in the quarter ended March 31, 1997, an increase of $6.8 million or 10%.
Cost of sales for the  current  quarter  was $14.9  million as compared to $11.7
million in the  comparable  period of 1997,  an increase of $3.2 million or 27%.
Cost of sales for the current quarter includes product costs of $12.1 million as
compared to $7.7 million in the  comparable  period of 1997.  Gross  margins for
product sales remained  relatively flat at 84% for the current quarter  compared
to 85% in the  comparable  period of 1997.  Cost of sales  relating  to  royalty
revenue  for the current  quarter was $2.8  million as compared to $4 million in
the  comparable  period of 1997,  a decrease  of $1.2  million,  due to a higher
proportion of royalty revenue with lower  associated  royalty costs. The Company
expects that gross margins on royalty revenue will fluctuate in the future based
on the impact of one-time royalty and milestone payments.

Research and development  expenses for the current quarter were $37.1 million, a
decrease of $0.8 million or 2% as compared to the quarter  ended March 31, 1997.
Included in research  and  development  expenses in the quarter  ended March 31,
1997 was a one-time license fee of $5 million to CV Therapeutics, Inc. Excluding
the one-time  license fee,  research and  development  expenses  increased  $4.2
million,  primarily  due to an  increase in clinical  trial  costs.  The Company
expects that, in the long-term,  research and development expenses will increase
as the Company expands its pipeline and related development efforts and clinical
trials with respect to potential new product  candidates and continues  clinical
trials of  AVONEX(R).  Selling,  general  and  administrative  expenses  for the
current quarter were $26 million, an increase of $4.8 million or 23% as compared
to the quarter  ended March 31, 1997.  This  increase was  primarily  due to the
selling and marketing  expenses  related to sales of AVONEX(R),  principally  in
support of the ongoing  European  launch.  The  Company  expects  that  selling,
general and  administrative  expenses  will continue to increase in the near and
long-term  as  the  Company   continues  to  expand  the  sales  and   marketing
organizations and activities  necessary to sell AVONEX(R)in  additional European
markets.

Income tax expense as a percent of pre-tax  income for the quarters  ended March
31, 1998 and 1997 was 36% and 40.5%, respectively. The effective tax rate varied
from U.S. statutory rates in the current quarter primarily due to an increase in
European sales and to the utilization of research and development  credits.  The
effective  rate in the first  quarter of 1997 varied from U.S.  statutory  rates
primarily  due to the benefit of research and  development  and  investment  tax
credits partially offset by foreign losses for which the Company received no tax
benefit.

Financial Condition

At March 31, 1998, cash, cash  equivalents and short term marketable  securities
were $65.6 million  compared with $70.4 million at December 31, 1997, a decrease
of $4.8 million.  Working capital increased $11.1 million to $483.3 million from
December 31, 1997 to March 31, 1998. Net cash provided from operating activities
for the current  quarter was $42.3  million  compared  with $5.8 million for the
first  quarter  of  1997.  Cash  outflows  for  the  current  quarter   included
investments in property and equipment and patents of $5.9 million and $5 million
under collaborative research agreements. Cash outflows from financing activities
included note

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                                                                         Page 11


payable and loan  repayments of $2.3 million,  and  repurchases of the Company's
common  stock at a total cost of $21.5  million.  Cash  inflows  from  financing
activities  included  $7.3 million  from common  stock option and purchase  plan
activity.

Several legal  proceedings were pending during the current quarter which involve
the Company.  See Note 4 of the Notes to the  Condensed  Consolidated  Financial
Statements  and Part II Item 1 - Legal  Proceedings.  See also Item 1  Business,
"Patents and Other  Proprietary  Rights" of the Company's  Annual Report on Form
10-K for the fiscal year ended December 31, 1997 for  discussions of these legal
proceedings.

The Company  believes that existing funds and cash generated from operations are
adequate to satisfy its working capital and capital expenditure  requirements in
the  foreseeable  future.  However,  the  Company  may seek to raise  additional
capital to take advantage of favorable conditions in the market or in connection
with the Company's development activities.


Outlook

Safe Harbor Statement under Private Securities Litigation Reform Act of 1995

In  addition  to  historical  information,  this  quarterly  report on Form 10-Q
contains  forward-looking  statements that involve risks and uncertainties  that
could cause actual  results to differ  materially  from those  reflected in such
forward-looking  statements.  Reference is made in particular to forward-looking
statements  regarding the anticipated level of future royalty revenues,  product
sales, expenses and profits and anticipated pricing approvals and predictions as
to  the  anticipated  outcome  of  pending  litigation.   These  and  all  other
forward-looking  statements are made based on the Company's current belief as to
the outcome and timing of such future  events.  Factors which could cause actual
results to differ from the  Company's  expectations  and which could  negatively
impact the Company's  results of operations are discussed below and elsewhere in
this Management's  Discussion and Analysis of Financial Condition and Results of
Operations.

Dependence on AVONEX(R) Sales and Royalty Revenue

The Company's ability to sustain increases in revenues and profitability will be
primarily  dependent on the level of revenues and  profitability  from AVONEX(R)
sales. The Company's  ability to sustain  profitability  from sales of AVONEX(R)
will depend on a number of factors,  including:  continued market  acceptance of
AVONEX(R)  worldwide;  the Company's ability to maintain a high level of patient
satisfaction  with  AVONEX(R);  the nature of regulatory  and pricing  decisions
related  to  AVONEX(R)  worldwide  and the  extent to which  AVONEX(R)  receives
reimbursement  coverage;  market  acceptance  of  AVONEX(R)  outside  the United
States;  successful  resolution  of  the  lawsuit  with  Berlex  related  to the
"McCormick"  patent,  which if decided in  Berlex's  favor could have a material
adverse  effect on the Company's  operations;  the Company's  ability to sustain
market share of AVONEX(R) in light of the  introduction of competitive  products
for the treatment of multiple sclerosis; the success of ongoing development work
related  to  AVONEX(R)  in  expanded  multiple  sclerosis  indications  and  the
continued accessibility of third parties to vial, label, and distribute

<PAGE>
                                                                         Page 12


AVONEX(R) on acceptable  terms. The Company also receives royalty revenues which
contributes significantly to its overall profitability. The Company's ability to
maintain the level of its royalty revenues will depend on:  sustaining the scope
and  validity of existing  patents;  the efforts of  licensees  in the  clinical
testing and marketing of products from which the Company  derives  revenue;  and
the timing and extent of royalties from additional licensing  opportunities.  In
addition, licensee sales levels may fluctuate from quarter to quarter due to the
timing and extent of major events such as new indication approvals or government
sponsored vaccination programs.  There can be no assurance that the Company will
achieve a positive outcome with respect to any of the factors  discussed in this
Section or that the timing and extent of the  Company's  success with respect to
any  combination  of these  factors  will be  sufficient  to result in sustained
increases in revenues or  profitability  or the sustained  profitability  of the
Company.  For a further  discussion of risks regarding drug development,  patent
matters,  including the Berlex lawsuit on the "McCormick" patent, competition in
the multiple sclerosis market and regulatory  matters,  see the Company's Annual
Report on Form 10-K for the period  ended  December  31, 1997 under the headings
"Business - Risks  Associated  with Drug  Development",  "Business - Patents and
Other    Proprietary    Rights",    "Business    Competition    and    Marketing
-AVONEX(R)(interferon  beta 1a)",  "Business - Regulation",  "Legal Proceedings"
and "Management's  Discussion and Analysis of Financial Condition and Results of
Operations Outlook."

New Products

AVONEX(R) is currently  the only  product  sold by the  Company.  The  Company's
long-term  viability and growth will depend on the  successful  development  and
commercialization   of  other   products  from  its  research   activities   and
collaborations.  The Company has begun to expand its development efforts related
to other potential  products in its pipeline.  The expansion of the pipeline may
include  increases in spending on internal  projects,  the  acquisition of third
party   technologies  or  products  or  other  types  of  investments.   Product
development  involves a high degree of risk.  Many important  factors affect the
Company's ability to successfully develop and commercialize drugs, including the
ability to obtain and maintain  necessary  patents and licenses,  to demonstrate
safety and  efficacy  of drug  candidates  at each stage of the  clinical  trial
process, to meet applicable regulatory standards and receive required regulatory
approvals,  to be capable of producing drug candidates in commercial  quantities
at reasonable  costs,  to compete  successfully  against  other  products and to
market products successfully. There can be no assurance that the Company will be
successful in its efforts to develop and commercialize new products.


<PAGE>
                                                                         Page 13



                           PART II - OTHER INFORMATION


  Item 1 - Legal Proceedings

  During the fourth  quarter of 1994, a total of six class action  lawsuits were
  initiated  against Biogen and several of its directors and officers.  On March
  3, 1995, these cases were  consolidated into a single proceeding in the United
  States District Court for the District of Massachusetts.  On January 23, 1996,
  in  response  to motions to  dismiss  the entire  case filed by Biogen and the
  named officer and director defendants,  the District Court issued a Memorandum
  and Order,  dated January 22, 1996,  dismissing most of the claims asserted in
  the  plaintiffs'  Second  Amended  Complaint,  including  all  claims  against
  Biogen's outside directors. The only claims remaining in the case pertain to a
  statement  concerning the results of the HIRULOG(R)  TIMI-7 clinical trials in
  unstable  angina.  The Court did not reach a  decision  on the merits of these
  claims. On October 11, 1996, Biogen filed a motion for summary judgment in the
  case.  On  September  4, 1997,  the Court  denied the motion but  narrowed the
  plaintiff  class.  On May 6, 1998 a jury found in favor of Biogen -- rejecting
  all claims against the company.


  Item 6 - Exhibits and Reports on Form 8-K

       (a)     Exhibit

               No. 27        Financial Data Schedule(for EDGAR filing purposes
                              only).

       (b)     On March 16,  1998,  the  Company  filed a report on Form 8-K to
               disclose   that  it  has   received   a   decision   from  an
               International  Chamber of Commerce  arbitration  panel in its
               dispute  with  ASTA  Medica   Aktiengesellschaft  of  Berlin,
               Germany  regarding a 1989 agreement  among Biogen,  ASTA, and
               Bioferon  Biochemische  Substanzen  GmbH & Co. Bioferon was a
               joint venture between Biogen and Rentschler Arzneimittel GmbH &
               Co. of Laupheim, Germany, which entered bankruptcy in 1993.




                                   SIGNATURES

  Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934,  the
  registrant  has duly  caused  this  report to be  signed on its  behalf by the
  undersigned thereunto duly authorized.

                                          BIOGEN, INC.

  Dated:  May 7, 1998                          /s/Timothy M. Kish
         ----------------
                                          -------------------------------
                                                  Timothy M. Kish
                                            Vice President-Finance and
                                              Chief Financial Officer


<PAGE>
                                                                         Page 14



  EXHIBITS


  Index to Exhibit.



           No. 27         Financial Data Schedule(for EDGAR filing purposes
                          only).