SECURITIES AND EXCHANGE COMMISSION                Total Pages- 19
                    WASHINGTON, D.C. 20549                     Exhibit Index- 19


                          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      JUNE 30, 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 August 12, 1998:

  Common Stock, par value $0.01                    73,732,655
      (Title of each class)                    (Number of Shares)







                          B I O G E N , I N C .                           Page 2
                          ----------------------


                                  INDEX


                                                                        Page No.
PART I - FINANCIAL INFORMATION

   Condensed Consolidated Statements of Income -
     Three months and six months ended June 30, 1998 and 1997 . .           3

   Condensed Consolidated Balance Sheets -
     June 30, 1998 and December 31, 1997. . . . . . . . . . . . .           4

   Condensed Consolidated Statements of Cash Flows -
     Six months ended June 30, 1998 and 1997 . . . . . . . . . . .          5

   Notes to Condensed Consolidated Financial Statements . . . .             6

   Management's Discussion and Analysis of Financial
     Condition and Results of Operations  . . . . . . . . . . . . .        10

PART II - OTHER INFORMATION                                                16



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



















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

                              HIRULOG(R)  is a registered trademark
                              of The Medicines Company.










                                                                          Page 3
<TABLE>
                         BIOGEN, INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (unaudited)
                    (in thousands, except per share amounts)
<CAPTION>

                                         Three Months              Six Months
                                       Ended June 30,            Ended June 30,
                                   ----------------------    ------------------
                                      1998        1997          1998      1997
                                   ----------------------    ------------------
<S>                                 <C>         <C>          <C>       <C>
REVENUES

   Product sales . . . . . . . .    $ 87,073    $56,440      $163,173  $109,056
   Royalties . . . . . . . . . .      41,739     36,007        80,111    78,222
   Interest  . . . . . . . . . .       6,963      5,206        13,931    10,113
                                     -------     ------       -------   -------

      Total revenues . . . . . .     135,775     97,653       257,215   197,391
                                     =======     ======       =======   =======

EXPENSES

  Cost of sales. . . . . . . . .      17,171     11,444        32,044    23,188
  Research and development . . .      42,135     32,014        79,255    69,922
  Selling, general and
      administrative . . . . . .      28,481     20,960        54,484    42,124
  Other, net   . . . . . . . . .         724       (190)          770       144
                                      ------      ------       ------   -------

Total expenses . . . . . . . . .      88,511     64,228       166,553   135,378
                                     -------     ------       -------   -------

INCOME BEFORE INCOME TAXES . . .      47,264     33,425        90,662    62,013

Income taxes . . . . . . . . . .      15,815     13,477        31,442    25,055
                                     -------     ------        ------   -------

NET INCOME . . . . . . . . . . .    $ 31,449    $19,948      $ 59,220  $ 36,958
                                      ======     ======        =======  =======

BASIC EARNINGS PER SHARE . . . .    $   0.43    $  0.27       $  0.80   $  0.50
                                      ======     ======        ======    ======
DILUTED EARNINGS PER SHARE . . .    $   0.41    $  0.26       $  0.77   $  0.48
                                      ======     ======        ======    ======
SHARES USED IN CALCULATING:
  BASIC EARNINGS PER SHARE . . .      73,772     73,887        73,854    73,578
                                      ======     ======        ======    ======
DILUTED  EARNINGS PER SHARE  . .      76,764     76,248        76,809    76,546
                                      ======     ======        ======    ======
</TABLE>




See Notes to Condensed Consolidated Financial Statements.







<TABLE>
                                                                          Page 4
                          BIOGEN, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
<CAPTION>

                                                  June 30,1998       Dec.31,1997
                                                  (unaudited)
<S>                                               <C>                <C>
ASSETS
   Current assets
     Cash and cash equivalents. . . . . . . . .   $ 71,839           $ 70,358
     Marketable securities. . . . . . . . . . .    388,775            369,730
     Accounts receivable, net   . . . . . . . .     85,623             86,802
     Deferred tax asset . . . . . . . . . . . .     25,306             37,203
     Other current assets . . . . . . . . . . .     40,782             31,973
                                                   -------            -------
     Total current assets . . . . . . . . . . .    612,325            596,066
                                                   -------            -------
   Property, plant and equipment
     Cost . . . . . . . . . . . . . . . . . . .    254,053            240,513
     Less accumulated depreciation  . . . . . .     76,274             66,021
                                                   -------            -------
     Property, plant and equipment, net . . . .    177,779            174,492
                                                   -------            -------
   Other assets
     Patents, net . . . . . . . . . . . . . . .     16,105             14,935
     Marketable securities. . . . . . . . . . .     19,652             17,095
     Other  . . . . . . . . . . . . . . . . . .      7,710             11,237
                                                   -------            -------
     Total other assets. . . . . . . . . .  . .     43,467             43,267
                                                   -------            -------
                                                  $833,571           $813,825
                                                   =======            =======
LIABILITIES AND SHAREHOLDERS' EQUITY
   Current liabilities
     Accounts payable . . . . . . . . . . . . .   $ 17,842           $ 15,820
     Note payable . . . . . . . . . . . . . . .     14,559             24,817
     Current portion of long-term debt. . . . .      4,888              4,888
     Accrued expenses and other . . . . . . . .     68,287             78,358
                                                   -------            -------
     Total current liabilities. . . . . . . . .    105,576            123,883
                                                   -------            -------
   Long-term debt, less current portion             59,401             61,846
   Other long term liabilities . . . . . . . . .    15,798             15,132
   Put options . . . . . . . . . . . . . . . . .    33,335             76,671
   Commitments and contingencies . . . . . . . .

   Shareholders' equity
     Common stock  . . . . . . . . . . . . . . .       741                741
     Additional paid in capital  . . . . . . . .   511,460            516,880
     Retained earnings . . . . . . . . . . . . .   127,875             25,327
     Unrealized loss on
       marketable securities . . . . . . . . . .    (6,937)            (2,233)
     Cumulative translation adjustment . . . . .        (4)               (37)
     Treasury stock, at cost . . . . . . . . . .   (13,674)            (4,385)
                                                    -------            -------
   Total shareholders' equity  . . . . . . . . .    619,461            536,293
                                                    -------            -------
                                                   $833,571           $813,825
                                                    =======            =======
</TABLE>

See Notes to Condensed Consolidated Financial Statements.






                                                                          Page 5
<TABLE>
                        BIOGEN, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (unaudited)
                                 (in thousands)
<CAPTION>

                                                     Six Months Ended
                                                         June 30,
                                              --------------------------------
                                                    1998          1997
                                              --------------  ----------------
<S>                                               <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income. . . . . . . . . . . . . . . .      $ 59,220    $  36,958
   Adjustments to reconcile net income
    to net cash provided from
    operating activities:
    Depreciation and amortization . . . . . .       11,630        9,071
    Deferred income taxes . . . . . . . . . .       13,208         (318)
    Other . . . . . . . . . . . . . . . . . .           23        2,550
    Changes in:
     Accounts receivable  . . . . . . . . . .        1,179      (16,855)
     Other current and other assets . . . . .       (9,372)      (9,590)
     Accounts payable, accrued expenses and
      other current and long term
      liabilities . . . . . . . . . . . . . .       (7,383)      (3,571)
                                                   -------      -------
   Net cash provided from operating
    activities. . . . . . . . . . . . . . . .       68,505       18,245
                                                   -------      -------
CASH FLOWS FROM INVESTING ACTIVITIES
   Purchases of marketable securities . . . .     (350,035)    (217,012)
   Proceeds from sales and maturities of
     marketable securities. . . . . . . . . .      331,810      192,804
   Investment in collaborative partners . . .       (5,000)     (11,000)
   Acquisitions of property and equipment . .      (13,113)     (13,461)
   Additions to patents . . . . . . . . . . .       (2,974)      (3,562)
                                                  --------      -------
     Net cash used by investing activities. .      (39,312)     (52,231)
                                                  --------      -------
CASH FLOWS FROM FINANCING ACTIVITIES
   Repayments of note payable . . . . . . . .      (10,258)           -
   Proceeds from issuance of long-term debt .            -        4,545
   Payments of long-term deb  . . . . . . . .       (2,445)      (1,639)
   Purchases of treasury stock  . . . . . . .      (28,800)         -
   Tax benefit related to stock options . . .        4,723       21,001
   Issuance of common stock and option
     exercises. . . . . . . . . . . . . . . .        9,068       21,297
                                                  --------      -------
     Net cash (used by) provided from financing
     activities . . . . . . . . . . . . . . .      (27,712)      45,204
                                                   -------     --------
NET INCREASE IN CASH AND
  CASH EQUIVALENTS  . . . . . . . . . . . . .        1,481       11,218

CASH AND CASH EQUIVALENTS,
  BEGINNING OF PERIOD . . . . . . . . . . . .       70,358       62,032
                                                   -------      --------
CASH AND CASH EQUIVALENTS,
  END OF PERIOD  . . . . . . . . . . . . . .      $ 71,839    $  73,250
                                                   =======      ========
</TABLE>

See Notes to Condensed Consolidated Financial Statements.

                                                                          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.  Certain  amounts  for the six months  ended June 30, 1997 have
      been reclassified to conform to the current period presentation.

      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 and six months  ended June 30, 1998 was $25.5
      million and $54.5 million,  respectively.  SFAS 131 establishes  standards
      for  reporting  information  on  operating  segments in interim and annual
      financial statements.

      On  June  15,  1998,  the  Financial  Accounting  Standards  Board  issued
      Statement of Financial  Accounting  Standards Number 133,  "Accounting for
      Derivative  Instruments and Hedging  Activities" ("SFAS 133"). SFAS 133 is
      effective for all fiscal quarters of all fiscal years beginning after June
      15, 1999  (January 1, 2000 for the  Company).  SFAS 133 requires  that all
      derivative  instruments  be recorded  on the  balance  sheet at their fair
      value.  Changes in the fair value of derivatives  are recorded each period
      in current earnings or other comprehensive income,  depending on whether a
      derivative is designated as part of a hedge transaction and, if it is, the
      type of hedge  transaction.  The Company has not yet determined the impact
      that the  adoption  of SFAS 133 will  have on its  financial  position  or
      results of operations.











                                                                          Page 7

Below is a summary of the shares  used in  calculating  basic and  diluted
earnings per share (in thousands):
<TABLE>
<CAPTION>

                            Three Months Ended     Six Months Ended
                                June 30,               June 30,
                         ---------------------    ---------------------------
                            1998       1997       1998         1997
                         ---------    --------   -----------   --------------
<S>                         <C>        <C>         <C>          <C>
Weighted average number
 of shares of common
 stock outstanding . . .    73,772     73,887      73,854       73,578
Dilutive stock options..     2,992      2,361       2,955        2,968
                            ------     ------      ------       ------
hares used in
 calculating diluted
 earnings per share. . .    76,764     76,248      76,809       76,546
                            ======     ======      ======       ======
</TABLE>


2.    As of June 30, 1998,  the Company had $20.0  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 June 30, 1998,  the Company had $44.3  million  outstanding  under a
      loan agreement with a bank for financing the construction of the Company's
      biological  manufacturing  facility in North  Carolina (the  AConstruction
      Loan@).  The  Construction  Loan is secured by the  facility.  Payments of
      $805,000 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 June 30, 1998 and December 31, 1997 are as follows:
<TABLE>
<CAPTION>

                                         (In Thousands)
                              June 30, 1998        December 31, 1997
                             ------------------   -------------------

          <S>                    <C>                   <C>
          Raw materials          $ 3,685               $ 4,957
          Work in process         17,743                 8,132
          Finished goods           8,816                 9,870
                                  ------                ------
                                 $30,244               $22,959
                                  ======                ======
</TABLE>







                                                                          Page 8

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 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 was terminating  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. On or about May 14, 1998, ASTA filed a complaint  against Biogen in
    the United States District Court for the District of Massachusetts  seeking
    enforcement of the arbitration decision, injunctive relief, damages, relief
    pursuant to the Massachusetts Consumer Protection Act (Mass. Gen L. ch. 93A)
    and other

                                                                          Page 9

    relief arising out of additional  tort and contract  claims.  ASTA alleges
    that Biogen's termination of the 1989 Agreement based on ASTA's conduct is
    invalid and that ASTA is Biogen's  exclusive  licensee of recombinant beta
    interferon in the territories  specified in the 1989  Agreement.  To date,
    ASTA has not served  Biogen with the  complaint  in this case.  If served,
    Biogen intends to vigorously defend the lawsuit.

    On May 6, 1998,  a jury found in favor of the Company and  rejected all of
    the  plaintiff's  claims in a class action lawsuit  initiated  against the
    Company in 1994 in the United  States  District  Court for the District of
    Massachusetts. The  plaintiffs'  claims  in the  lawsuit  related  to the
    Company's 1994 public comments regarding  HIRULOG(R)  (bivalirudin) direct
    thrombin inhibitor.

    On or about  July 17,  1998,  Biogen  received a letter  demanding  relief
    pursuant to the Massachusetts  Consumer  Protection Act (Mass. Gen. L. ch.
    93A) on  behalf  of  an  alleged   class  of  persons   who  have  filled
    prescriptions  at pharmacies  owned and/or operated by CVS Pharmacy,  Inc.
    The demand purports to be made in connection with litigation filed against
    CVS and others in the  Massachusetts  Superior  Court  styled  Weld v. CVS
    Pharmacy, Inc., et al. Civil Action No. 98-0897-F. Biogen understands that
    the Weld plaintiffs filed an amended  complaint on or about July 15, 1998,
    naming Biogen (and other major pharmaceutical manufacturers) as additional
    defendants. Plaintiffs have yet to serve this amended complaint on Biogen.
    In pertinent  part,  the demand seeks  unspecified  monetary and equitable
    relief  from Biogen on account of  Biogen's  alleged  participation  in a
    direct  mailing program  to CVS  customers.  Plaintiffs  claim  that this
    alleged program violates these customers'  statutory and common law rights
    to privacy as well as Chapter 93A.  Biogen  disputes the claims  raised in
    the demand letter,  and intends to vigorously  oppose any subsequent legal
    action that may be taken in connection with the demand letter.  If served,
    Biogen also intends to vigorously oppose the claims  asserted in the Weld
    action.

5.  Income tax expense as a percent of pre-tax  income for the quarters  ended
    June 30, 1998 and 1997 was 33.5% and 40.3%,  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 tax rate varied from U.S. statutory
    rates in the comparable  period of 1997  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 10

                          BIOGEN, INC. AND SUBSIDIARIES
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Overview

Biogen,  Inc.  (the  ACompany@  or  ABiogen@)  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 June 30, 1998,  the Company  reported net income of $31.4
million or $0.41 per diluted  share as  compared  to $19.9  million or $0.26 per
diluted share for the  comparable  period of 1997. For the six months ended June
30, 1998, the Company  recorded net income of $59.2 million or $0.77 per diluted
share as compared to $37 million or $0.48 per diluted  share for the  comparable
period of 1997.

Total revenues for the current quarter were $135.8 million, as compared to $97.7
million in the quarter ended June 30, 1997, an increase of $38.1 million or 39%.
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 $87.1
million compared to $56.4 million for the comparable period in 1997, an increase
of $30.7  million  or 54.4%.  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.  In addition,  in April 1998, the Company
received approval to market AVONEX(R) in Canada.  AVONEX(R) sales outside of the
United States were  approximately $19 million in the current quarter as compared
to  approximately  $3 million in the  comparable  period of 1997.  Revenues from
royalties for the current  quarter were $41.7 million as compared to $36 million
for the  comparable  period  of 1997,  an  increase  of $5.7  million  or 15.8%,
primarily   as  a  result  of  an   increase  in  alpha   interferon   sales  by
Schering-Plough  Corporation   ("Schering-Plough")as  well  as  an  increase  in
royalties on sales of Hepatitis B vaccines sold by SmithKline and Merck.  In May
1998,  the Company and Schering  Corporation,  a subsidiary of  Schering-Plough,
amended the terms of the license agreement under which  Schering-Plough pays the
Company  royalties  on worldwide  sales of  Schering-Plough's  alpha  interferon
product, Intron(R) A. Under the terms of the amendment, Schering-Plough acquired
Biogen's  patent  application  and agreed to pay certain  sums on U.S.  sales of
Intron(R)  A from July 2002  until  expiration  of the alpha  interferon  patent
expected to be issued to  F.Hoffman-LaRoche,  Inc. and Genentech Inc., which was
the subject of a lawsuit filed by the Company. The lawsuit has been settled.

Total  revenues  for the six months  ended June 30, 1998 were $257.2  million as
compared  to $197.4  million in the  comparable  period of 1997,  an increase of
$59.8 million or 30.3%, primarily due to increased sales of


                                                                         Page 11

AVONEX(R).  Revenues from product sales for the six-month  period ended June 30,
1998  increased  $54.1  million  or 49.6% to $163.2  million,  or 63.5% of total
revenues,  compared  to  $109.1  million,  or 55.3% of  total  revenues,  in the
comparable  period of 1997.  Royalties during the six months ended June 30, 1998
increased  $1.9  million,  or 2.4% from the  comparable  period of 1997 to $80.1
million.

The Company  expects product sales as a percentage of total revenues to continue
to  increase  in the near term as the  Company  continues  to  market  AVONEX(R)
worldwide, and expects sales from AVONEX(R) in Europe to continue to increase as
a percentage  of total  product  sales.  The Company,  however,  expects to face
increasing   competition  in  the  MS  marketplace  from  existing  and  new  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 government sponsored vaccination programs.

Interest  income for the current  quarter was $7.0 million,  an increase of $1.8
million or 34.6% as compared to $5.2 million in the  comparable  period of 1997.
For the six  months  ended June 30,  1998,  interest  income  was $13.9  million
compared to $10.1 million in the comparable  period of 1997, an increase of $3.8
million or 37.6%.  The  increase  in  interest  income is  primarily a result of
increased funds invested.

Total  expenses for the current  quarter were $88.5 million as compared to $64.2
million in the quarter  ended June 30,  1997,  an  increase of $24.3  million or
37.9%.  Cost of sales in the current quarter totaled $17.2 million,  an increase
of $5.8  million  from the  quarter  ended June 30,  1997.  Cost of sales in the
current quarter  includes  product costs relating to sales of AVONEX(R) of $13.9
million  compared to $8.8  million in the  quarter  ended June 30,  1997.  Gross
margins  for  product  sales  remained  flat at  approximately  84% for both the
current  quarter and the  comparable  period of 1997.  Cost of sales relating to
royalty  revenue  for the current  quarter was $3.3  million as compared to $2.6
million in the  comparable  period of 1997.  Gross  margins  on royalty  revenue
declined  slightly to 92.1% for the current quarter as compared to 92.8% for the
comparable  period of 1997.  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 $42.1 million, an
increase of $10.1  million or 31.6% as  compared  to the quarter  ended June 30,
1997. This increase was primarily due to an increase in clinical trial costs and
an increase in the Company=s  development  efforts related to other research and
development  programs  in  its  pipeline.  The  Company  expects  that,  in  the
long-term,  research  and  development  expenses  will  increase  as the Company
continues to expand its development  efforts with respect to new products and as
it  conducts   clinical   trials  of  these  products.   Selling,   general  and
administrative  expenses for the current quarter were $28.5 million, an increase
of $7.5 million or 35.7% as compared to the quarter  ended June 30,  1997.  This
increase was primarily due to higher selling and marketing  expenses  related to
sales of AVONEX(R),  principally in support of the ongoing  European  launch and
higher legal costs. The Company expects that selling, general and administrative
expenses will increase in the near and long-term as the
                                                                         Page 12

Company  continues to put in place the commercial  infrastructure  and sales and
marketing organizations necessary to sell AVONEX(R) worldwide.

Total expenses for the six-month  period ended June 30, 1998 were $166.6 million
as compared to $135.4 million in the  comparable  period of 1997, an increase of
$31.2  million or 23%. Cost of sales for the six months ended June 30, 1998 were
$32 million as compared to $23.2  million in the  comparable  period of 1997, an
increase of $8.8  million or 37.9%.  Cost of sales for the six months ended June
30,  1998 and 1997  included  $26 million and $16.6  million,  respectively,  of
product costs related to the sales of AVONEX(R). Gross margins for product sales
decreased  slightly to 84.1% for the six months  ended June 30, 1998 as compared
to 84.8% for the  comparable  period of 1997.  Cost of sales relating to royalty
revenue  decreased  $0.6 million to $6 million for the six months ended June 30,
1998 as  compared  to $6.6  million  for the  comparable  period of 1997.  Gross
margins on royalty revenue increased  slightly to 92.5% for the six months ended
June 30, 1998 as compared to 91.6% for the comparable period of 1997.

Research and development  expenses for the current  six-month  period were $79.3
million as compared to $69.9 million in the comparable period of 1997.  Included
in research and development  expenses for the six months ended June 30, 1997 was
a one-time  license fee of $5 million to CV  Therapeutics,  Inc.  Excluding  the
one-time license fee, research and development expenses for the six months ended
June 30, 1998,  increased  $14.4 million or 22.2% from the comparable  period of
1997. This increase was primarily due to an increase in clinical trial costs and
an increase in the Company's  development  efforts related to other research and
development  programs  in its  pipeline.  Selling,  general  and  administrative
expenses  for the  six-month  period  ended June 30, 1998 were $54.5  million as
compared to $42.1 million in the comparable period of 1997, an increase of $12.4
million or 29.5%.  This  increase was  primarily  due to the higher  selling and
marketing  expenses  related to sales of  AVONEX(R),  primarily  in Europe,  and
higher legal fees.

Income tax expense as a percent of pre-tax  income for the  quarters  ended June
30,  1998 and 1997 was 33.5% and 40.3%,  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 tax rate in the  comparable  period of 1997 varied from
U.S.  statutory  rates  primarily due to the benefit of research and development
and  investment  tax  credits  offset by foreign  losses  for which the  Company
received no tax benefit.  The  Company=s  effective  tax rate for the six months
ended June 30, 1998 was 34.7%, and is expected to continue at or near this level
for the remainder of 1998.

Financial Condition

At June 30, 1998,  cash, cash  equivalents and short term marketable  securities
were $460.6  million  compared  with $440.1  million at December  31,  1997,  an
increase of $20.5 million.  Working  capital  increased  $34.6 million to $506.7
million  from  December  31,  1997 to June  30,  1998.  Net cash  provided  from
operating  activities  for the  six-month  period  ended June 30, 1998 was $68.5
million,  compared with $18.2  million in the  comparable  period of 1997.  Cash
outflows  for the six  months  ended  June 30,  1998,  included  investments  in
property and equipment  and patents of $16.1  million and $5 million  related to
research  collaboration  agreements.  Cash  outflows from  financing  activities
included note payable and loan  repayments of $12.7 million and  repurchases  of
the Company's common stock

                                                                         Page 13

at a total  cost of  $28.8  million.  Cash  inflows  from  financing  activities
included  $13.8  million from common stock  option and purchase  plan  activity,
including tax benefits related to stock options.

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,
APatents 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.











































                                                                         Page 14

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  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  financial  position and results of 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  AVONEX(R) on acceptable terms. The Company also
receives  royalty  revenues  which  contribute   significantly  to  its  overall
profitability.  The  Company's  ability  to  maintain  the level of its  royalty
revenues will depend on a number of factors, including: 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


                                                                         Page 15

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 to  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 16
                           PART II - OTHER INFORMATION



Item 1 - Legal Proceedings

On May 6, 1998,  a jury found in favor of the  Company and  rejected  all of the
plaintiff's  claims in a class action lawsuit  initiated  against the Company in
1994 in the United States District Court for the District of Massachusetts.  The
plaintiffs'  claims in the lawsuit related to the Company's 1994 public comments
regarding HIRULOG(R) (bivalirudin) direct thrombin inhibitor.

On or about July 17, 1998, Biogen received a letter demanding relief pursuant to
the Massachusetts  Consumer  Protection Act (Mass. Gen. L. ch. 93A) on behalf of
an alleged class of persons who have filled  prescriptions  at pharmacies  owned
and/or  operated  by CVS  Pharmacy,  Inc.  The  demand  purports  to be  made in
connection  with  litigation  filed against CVS and others in the  Massachusetts
Superior  Court  styled Weld v. CVS  Pharmacy,  Inc.,  et al.  Civil  Action No.
98-0897-F.  Biogen  understands  that  the  Weld  plaintiffs  filed  an  amended
complaint  on  or  about  July  15,  1998,   naming   Biogen  (and  other  major
pharmaceutical  manufacturers) as additional defendants.  Plaintiffs have yet to
serve this amended  complaint on Biogen.  In  pertinent  part,  the demand seeks
unspecified  monetary  and  equitable  relief from Biogen on account of Biogen's
alleged  participation in a direct mailing program to CVS customers.  Plaintiffs
claim that this alleged program violates these  customers'  statutory and common
law rights to privacy as well as Chapter 93A.  Biogen disputes the claims raised
in the demand  letter,  and intends to vigorously  oppose any  subsequent  legal
action that may be taken in connection with the demand letter. If served, Biogen
also intends to vigorously oppose the claims asserted in the Weld action.

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  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  notified ASTA that it was  terminating  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.  On or about May 14, 1998, ASTA filed a complaint  against Biogen
in the United States  District Court for the District of  Massachusetts  seeking
enforcement of the arbitration decision,




                                                                         Page 17

injunctive  relief,  damages,  relief  pursuant  to the  Massachusetts  Consumer
Protection Act (Mass. Gen L. ch. 93A) and other relief arising out of additional
tort and contract  claims.  ASTA alleges that Biogen's  termination  of the 1989
Agreement based on ASTA's conduct is invalid and that ASTA is Biogen's exclusive
licensee of recombinant beta interferon in the territories specified in the 1989
Agreement.  To date, ASTA has not served Biogen with the complaint in this case.
If served, Biogen intends to vigorously defend the lawsuit.

Item 4 - Submission of Matters to a Vote of Security Holders

         (a)      The  information  set forth in this Item 4 relates  to matters
                  submitted to a vote at the Annual Meeting of  stockholders  of
                  Biogen, Inc. on June 19, 1998.

         (b)      Not applicable.

         (c)      A proposal to elect Alan Belzer, Dr. Mary L. Good, Dr. Kenneth
                  Murray  and James W.  Stevens  to serve for three  year  terms
                  ending in 2001 and until their successors are duly elected and
                  qualified was approved with the following vote:
<TABLE>
<CAPTION>


                  Nominee                    For           Authority Withheld
                  ------------------    ---------------  ---------------------
                  <S>                     <C>                   <C>
                  Alan Belzer             55,661,193            222,728
                  Mary L. Good            55,655,853            228,068
                  Kenneth Murray          55,743,926            139,995
                  James W. Stevens        55,681,831            202,090
</TABLE>

                  A proposal to ratify the  selection of Price  Waterhouse  LLP
                  as the  Company's  independent  accountants  for the fiscal
                  year ending   December  31,  1998  was  approved  with
                  55,760,281 affirmative votes,  39,934 negative votes,  83,706
                  abstentions and 0 broker non-votes.

          (d)     Not applicable.



Item 5 - Other Information

To be  considered  for inclusion in the proxy  statement  relating to the Annual
Meeting  of  stockholders  to be held in  1999,  stockholder  proposals  must be
received no later than January 8, 1999. To be considered for presentation at the
Annual Meeting, although not included in the proxy statement,  proposals must be
received no later than 60 days,  but not more than 90 days,  prior to the Annual
Meeting.  All  stockholder  proposals  should be marked for the attention of the
Vice President-General Counsel, Biogen, Inc., 14 Cambridge Center, Cambridge, MA
02142.











                                                                         Page 18

Item 6 - Exhibits and Reports on Form 8-K

         (a)     Exhibits

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

         (b)     On April  8,  1998,  the  Company  filed a report  on Form 8-K
                 disclosing  the  issuance of 3,350  shares of its Common Stock
                 under Regulation S of the Securities Act of 1933.

                 On May 7,  1998,  the  Company  filed a report  on Form 8-K to
                 disclose a decision by the U.S. Federal District Court for the
                 District of  Massachusetts  in connection  with a class action
                 suit  relating to the  Company's  1994 public  comments  about
                 HIRULOG(R)  (bivalirudin) direct thrombin inhibitor.  The jury
                 rejected  all  claims  made  by  the  plaintiffs  against  the
                 Company.



                                   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: August 13, 1998                         /s/Timothy M. Kish
                                        ----------------------------------
                                                Timothy M. Kish
                                          Vice President-Finance and
                                            Chief Financial Officer


<PAGE>


                                                                         Page 19
                           PART II - OTHER INFORMATION

EXHIBITS


Index to Exhibit.


  No. 10.1.1           Agreement and Amendment between the Company and Schering
                       Corporation dated May 1, 1998.*

  No. 10.1.2           1985 Non-Qualified Stock Option Plan, as amended through
                       June 20, 1998 and restated.

  No. 10.1.3           1982 Incentive Stock Option Plan, as amended through
                       June 20, 1998 and restated.

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





         *Confidential  treatment  requested  as  to  certain  portions,   which
         portions  are  omitted and filed  separately  with the  Securities  and
         Exchange Commission.