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Biogen (BIIB)
NASDAQ:BIIB
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Biogen
(NASDAQ:BIIB)
65Neutral
Positive Factors
Collaborations and Partnerships
Biogen announced a collaboration with Stoke Therapeutics for the development of a treatment for Dravet syndrome, which aligns with their expertise in neuro, immunology, and rare diseases.
Product Performance
Leqembi continues its positive trajectory especially in the USA, supporting the real-world data from the academic centers.
Regulatory Developments
The European Medicines Agency's Committee for Medicinal Products for Human Use reversed its decision and recommended Biogen/Eisai's Leqembi for Alzheimer's patients.
Negative Factors
Financial Performance
The stock is down 4% as the midpoint of the 2025 EPS guidance is notably below consensus.
Product Portfolio Challenges
Fresh pipeline cuts to BIIB113, BIIB093, BIIB101, and BIIB143 (cemdomespib), further trim down Biogen's portfolio, which was lean to start.
Revenue and Growth Challenges
Revenue erosion continues with unclear path to near-term sustained growth.
Biogen (BIIB) vs. S&P 500 (SPY)
Market Cap
$19.13B
Dividend YieldN/A
Average Volume (3M)1.74M
Price to Earnings (P/E)11.7
Beta (1Y)0.56
Revenue Growth-1.60%
EPS Growth39.71%
CountryUS
Employees7,605
SectorHealthcare
Sector Strength78
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)11.18
Shares Outstanding146,374,940
10 Day Avg. Volume1,716,112
30 Day Avg. Volume1,743,781
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)N/A
Price to Sales (P/S)2.13
Price to Cash Flow (P/CF)6.80
P/FCF Ratio6.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$192.24Price Target Upside56.32% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
Biogen Business Overview & Revenue Model
Company DescriptionBiogen Inc. is a leading biotechnology company focused on discovering, developing, and delivering innovative therapies for neurological and neurodegenerative diseases. Headquartered in Cambridge, Massachusetts, Biogen is dedicated to advancing science and medicine to improve patient outcomes in areas such as multiple sclerosis, Alzheimer's disease, and spinal muscular atrophy. The company's core products include a range of therapies addressing these complex conditions, making it a prominent player in the healthcare sector.
How the Company Makes MoneyBiogen generates revenue primarily through the sale of its pharmaceutical products, which are aimed at treating neurological and neurodegenerative diseases. Key revenue streams include its multiple sclerosis franchise, featuring notable products such as Tecfidera, Avonex, and Tysabri, which have been significant contributors to the company's earnings. Additionally, Biogen has invested in the development of treatments for Alzheimer's disease, with products like Aduhelm aimed at addressing unmet medical needs in this area. The company also engages in strategic collaborations and partnerships, which can offer both financial support and expanded market reach. Biogen's revenue model is heavily reliant on the success and market penetration of its therapies, as well as continuous innovation to maintain its competitive edge in the biotechnology industry.
Biogen Financial Statement Overview
Summary
Biogen presents a financially stable outlook with strong profitability margins and a robust cash flow position. The balance sheet is solid with low leverage, enhancing financial resilience. However, the declining revenue trend and moderate return on equity suggest areas for improvement. The company should focus on reversing revenue decline and optimizing cost structures to enhance net profitability.Income Statement
Biogen's TTM (Trailing-Twelve-Months) income statement shows mixed results. The gross profit margin is healthy at 78.53%, reflecting strong operational efficiency. However, the net profit margin has decreased to 17.23%, indicating rising costs or competitive pressures. Revenue has seen a negative growth rate of -3.68%, suggesting a decline in sales over the previous year. The EBIT margin of 30.99% and EBITDA margin of 24.22% showcase solid profitability, but the declining revenue trend is a concern.65
Positive
Balance Sheet
Biogen's balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.28, suggesting low leverage. The return on equity (ROE) is 9.35%, which is moderate but has room for improvement. The equity ratio stands at 62.19%, indicating a strong equity base relative to total assets. Overall, the company maintains a solid capital structure with manageable debt levels.70
Positive
Cash Flow
The cash flow analysis is positive with a significant increase in free cash flow to $2.62 billion, indicating robust cash generation. The free cash flow growth rate is 112.13%, driven by improved operational efficiencies. The operating cash flow to net income ratio of 1.76 and a free cash flow to net income ratio of 1.61 highlight strong cash generation capabilities relative to profits, providing financial flexibility.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.68B | 9.84B | 10.17B | 10.98B | 13.44B | Gross Profit |
| 9.68B | 7.30B | 7.90B | 8.87B | 11.64B | EBIT |
| 5.23B | 2.10B | 2.32B | 2.84B | 4.55B | EBITDA |
| 0.00 | 2.38B | 4.36B | 2.49B | 5.73B | Net Income Common Stockholders |
| 1.63B | 1.16B | 3.05B | 1.56B | 4.00B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.38B | 1.05B | 4.89B | 3.80B | 2.61B | Total Assets |
| 28.05B | 26.84B | 24.55B | 23.88B | 24.62B | Total Debt |
| 6.63B | 7.34B | 6.61B | 7.60B | 7.83B | Net Debt |
| 4.26B | 6.29B | 3.19B | 5.34B | 6.50B | Total Liabilities |
| 11.33B | 12.05B | 11.17B | 12.92B | 13.93B | Stockholders Equity |
| 16.72B | 14.80B | 13.39B | 10.96B | 10.69B |
| Cash Flow | Free Cash Flow | |||
| 2.52B | 1.24B | 1.14B | 3.35B | 3.68B | Operating Cash Flow |
| 2.88B | 1.55B | 1.38B | 3.64B | 4.23B | Investing Cash Flow |
| -799.20M | -4.10B | 1.58B | -563.70M | -608.60M | Financing Cash Flow |
| -683.50M | 149.30M | -1.76B | -2.09B | -5.27B |
Biogen Technical Analysis
Negative
122.98
Price Trends
140.86
Negative
147.44
Negative
175.43
Negative
Market Momentum
-1.62
Positive
33.63
Neutral
9.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIIB, the sentiment is Negative. The current price of 122.98 is below the 20-day moving average (MA) of 139.00, below the 50-day MA of 140.86, and below the 200-day MA of 175.43, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 33.63 is Neutral, neither overbought nor oversold. The STOCH value of 9.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIIB.
Biogen Risk Analysis
Biogen disclosed 30 risk factors in its most recent earnings report. Biogen reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Biogen Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $67.45B | 16.09 | 15.95% | 0.14% | 8.27% | 10.35% | |
75 Outperform | $140.11B | 293.83 | 2.28% | 2.76% | 6.16% | -91.54% | |
75 Outperform | $166.45B | 40.98 | 67.55% | 2.95% | 18.64% | -39.39% | |
65 Neutral | $19.13B | 11.69 | 10.36% | ― | -1.60% | 39.71% | |
64 Neutral | $124.29B | ― | -3.15% | ― | 11.64% | -114.72% | |
60 Neutral | $117.65B | ― | -39.10% | 4.18% | 7.32% | -214.24% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% |
* Healthcare Sector Average
Performance Comparison
BIIB
Biogen
122.98
-80.89
-39.68%
AMGN
Amgen
294.39
32.43
12.38%
BMY
Bristol-Myers Squibb
55.30
6.38
13.04%
GILD
Gilead Sciences
107.25
40.19
59.93%
REGN
Regeneron
573.45
-368.04
-39.09%
VRTX
Vertex Pharmaceuticals
474.62
67.95
16.71%
Biogen Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -11.77% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
Biogen's earnings call highlighted successful new product launches and operational efficiency, offsetting declines in its multiple sclerosis franchise. However, challenges persist in identifying patients for SKYCLARYS and pressure on MS revenues is expected to continue.Highlights
New Product Launch Success
Revenue from new launches in Alzheimer's, Friedreich’s ataxia, depression, and ALS offset declines in multiple sclerosis products. Core pharma business grew for the first time in four years, despite a $160 million decline in total revenue.
LEQEMBI Growth
LEQEMBI global in-market sales increased approximately 30% sequentially to $87 million in Q4 2024, driven by strong growth in Asia and facilitated by a single-payer system ex-US.
SKYCLARYS Expansion
SKYCLARYS revenue grew 83% year-over-year to $102 million in Q4 2024. Patient numbers have doubled, with expectations for continued growth in Latin America and the Middle East.
Operational Efficiency
Fit for Growth initiative contributed to a 17% increase in non-GAAP diluted EPS in Q4 2024. Free cash flow improved by $1.4 billion year-over-year, reaching $2.7 billion.
Lowlights
Multiple Sclerosis Revenue Decline
MS product revenue declined 8% due to competition and expected biosimilar entry for TYSABRI in the U.S. and generics for TECFIDERA in Europe.
Revenue Guidance Decline
Biogen expects a mid-single-digit percentage decline in total revenue for 2025, driven by increased pressure on the MS business.
Challenges in Patient Identification
Difficulty in identifying patients for SKYCLARYS in the U.S. due to the rarity of Friedreich’s ataxia and the wide prescriber base needed.
Company Guidance
During Biogen's fourth quarter and full year 2024 earnings call, the company emphasized its strategic priorities and financial performance. They reported a total revenue decline of $160 million, attributed mainly to a $247 million reduction in contract manufacturing, while their core pharmaceutical business demonstrated growth. The decline in multiple sclerosis (MS) product revenue was offset by new product launches, and the overall revenue was $9.7 billion for the year. The company highlighted the importance of its new products in Alzheimer's, Friedreich’s ataxia, depression, and ALS, with LEQEMBI showing promising signs of growth. Biogen also announced a reduction in operating expenses and a commitment to reinvest in growth, resulting in $722 million of free cash flow in the fourth quarter. The company projected a mid-single-digit percentage decline in total revenue for 2025, primarily due to increased competition in the MS space, but expected continued strong growth from new product launches. Non-GAAP diluted earnings per share for 2025 are expected to be between $15.25 and $16.25, with $180 million to $220 million in net expense from non-GAAP other income and expense.Biogen Corporate Events
Executive/Board Changes
Biogen Announces New Chief Accounting Officer Appointment
Neutral
Jan 15, 2025
On January 13, 2025, Biogen Inc. announced the appointment of Sean Godbout as Vice President, Chief Accounting Officer & Global Corporate Controller, effective March 1, 2025. This appointment aligns with the retirement of current Chief Financial Officer Michael McDonnell, after which Robin Kramer, the current Chief Accounting Officer, will transition to the CFO role. Godbout’s extensive experience within Biogen since 2007, and his previous roles at PricewaterhouseCoopers, underline his qualifications for this new position, potentially impacting Biogen’s financial strategy and operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.