Stock of the Day

August 14, 2023

Biogen (BIIB)

$127.50
-$5.61 (-4.2%)
Market Cap: $19.50B

About Biogen

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases in the United States, Europe, Germany, Asia, and internationally. The company provides TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA for multiple sclerosis (MS); SPINRAZA for spinal muscular atrophy; ADUHELM to treat Alzheimer's disease; FUMADERM to treat plaque psoriasis; BENEPALI, an etanercept biosimilar referencing ENBREL; IMRALDI, an adalimumab biosimilar referencing HUMIRA; FLIXABI, an infliximab biosimilar referencing REMICADE; and BYOOVIZ, a ranibizumab biosimilar referencing LUCENTIS. It offers RITUXAN for treating non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL), rheumatoid arthritis, two forms of ANCA-associated vasculitis, and pemphigus vulgaris; RITUXAN HYCELA for non-Hodgkin's lymphoma and CLL; GAZYVA to treat CLL and follicular lymphoma; OCREVUS for relapsing MS and primary progressive MS; LUNSUMIO to treat relapsed or refractory follicular lymphoma; glofitamab for non-Hodgkin's lymphoma; and other anti-CD20 therapies. In addition, the company is developing various products for the treatment of MS, Alzheimer's disease and dementia, neuromuscular disorders, Parkinson's disease and movement disorders, neuropsychiatry, genetic neurodevelopmental disorders, and biosimilars, which are under various stages of development. It has collaboration and license agreements with Acorda Therapeutics, Inc.; Alkermes Pharma Ireland Limited; Denali Therapeutics Inc.; Eisai Co., Ltd.; Genentech, Inc.; Neurimmune SubOne AG; Ionis Pharmaceuticals, Inc.; Samsung Bioepis Co., Ltd.; Sangamo Therapeutics, Inc.; and Sage Therapeutics, Inc., as well as collaboration with Fujirebio to potentially identify and develop blood-based biomarkers for tau pathology in the brain. The company was founded in 1978 and is headquartered in Cambridge, Massachusetts.

Biogen Bull Case

Here are some ways that investors could benefit from investing in Biogen Inc.:

  • Biogen Inc. has recently seen an increase in institutional investment, with significant stakes acquired by firms like Sumitomo Mitsui Trust Group Inc., indicating confidence in the company's future performance.
  • The stock price is currently around $132, which may present a buying opportunity for investors looking for potential growth as the market stabilizes.
  • Analysts have provided a consensus target price of approximately $188.48, suggesting that there is room for price appreciation based on current evaluations.
  • Biogen Inc. has a strong presence in the biotechnology sector, with a diverse portfolio of products that cater to various medical needs, enhancing its market resilience.
  • Recent reports indicate that a majority of analysts maintain a "hold" or "buy" rating on the stock, reflecting a generally positive outlook among market experts.

Biogen Bear Case

Investors should be bearish about investing in Biogen Inc. for these reasons:

  • Despite recent institutional interest, the stock has experienced volatility, with a one-year high of $238 and a low of $110, indicating potential risks associated with price fluctuations.
  • Some analysts have downgraded their ratings, with firms like JPMorgan and HSBC reducing their price targets, which may signal concerns about the company's short-term performance.
  • Biogen Inc. operates in a highly competitive biotechnology market, which can impact its ability to maintain market share and profitability.
  • There is a significant reliance on a few key products for revenue, which can pose risks if those products face regulatory challenges or market competition.
  • The overall economic environment and healthcare policies can affect Biogen Inc.'s operations and profitability, making it a potentially risky investment in uncertain times.
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