Biogen (BIIB) AI Stock Analysis

• Market Cap: $17.40B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.54
• Revenue Growth: -1.60%
• EPS Growth: 39.71%
• Country: US
• Employees: 7,605
• Sector: Healthcare
• Sector Strength: 69
• Industry: Drug Manufacturers - General
• EPS (TTM): 11.18
• Shares Outstanding: 146,374,940
• 10 Day Avg. Volume: 1,616,705
• 30 Day Avg. Volume: 1,759,358
• PEG Ratio: 0.27
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.13
• Price to Cash Flow (P/CF): 6.80
• P/FCF Ratio: 6.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $181.13
• Price Target Upside: 52.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 29

Biogen's financial stability and strong cash flow are key strengths, but declining revenue and moderate ROE present challenges. The stock is technically weak, facing bearish trends. Valuation appears attractive with a low P/E ratio, suggesting potential undervaluation. Positive new product performance and operational efficiencies were notable in the earnings call, though challenges in the MS segment persist.

Positive Factors

Market Expansion

Biogen's exclusive commercialization rights for zorevunersen outside the U.S., Canada, and Mexico could increase its global market reach.

Regulatory Approvals

The European Commission has granted marketing authorization for Leqembi in the EU, potentially expanding its market reach.

Strategic Collaborations

Biogen's collaboration with Stoke Therapeutics to develop and commercialize zorevunersen could enhance its pipeline with a rare neuro asset at minimal upfront cost.

Negative Factors

Financial Performance

A second consecutive year of Total Revenue decline is modeled for Biogen, reflecting ongoing challenges.

Market Competition

NVO’s oral GLP-1A semaglutide data in early Alzheimer’s disease is an overhang on BIIB, casting uncertainty on its competitive position in Alzheimer's treatment.

Regulatory Challenges

Management anticipates a financial headwind of $50 million to $100 million due to changes in Medicare Part D, affecting both Skyclarys and the multiple sclerosis franchise.

Biogen Business Overview & Revenue Model

Company Description

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. The company offers TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA for multiple sclerosis (MS); SPINRAZA for spinal muscular atrophy; and FUMADERM to treat plaque psoriasis. It also provides BENEPALI, an etanercept biosimilar referencing ENBREL; ADUHELM for the treatment of Alzheimer's disease; IMRALDI, an adalimumab biosimilar referencing HUMIRA; and FLIXABI, an infliximab biosimilar referencing REMICADE. In addition, the company 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; and OCREVUS for treating relapsing MS and primary progressive MS; and other anti-CD20 therapies. Further, it develops BIIB135, BIIB061, BIIB091, and BIIB107 for MS and neuroimmunology; Aducanumab, Lecanemab, BIIB076, and BIIB080 to treat Alzheimer's disease and dementia; BIIB067, BIIB078, BIIB105, BIIB100, and BIIB110 to treat neuromuscular disorders; BIIB124, BIIB094, BIIB118, BIIB101, and BIIB122 for treating Parkinson's disease and movement disorders; BIIB125 and BIIB104 for treating neuropsychiatry; Dapirolizumab pegol and BIIB059 to treat immunology related diseases; BIIB093 and BIIB131 to treat acute neurology; BIIB074 for neuropathic pain; and BYOOVIZ, BIIB800, and SB15 biosimilars, which are under various stages of development. The company 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. Biogen Inc. was founded in 1978 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Biogen 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 118.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 118.84 is below the 20-day moving average (MA) of 121.83, below the 50-day MA of 133.65, and below the 200-day MA of 167.77, indicating a bearish trend. The MACD of -5.07 indicates Negative momentum. The RSI at 40.59 is Neutral, neither overbought nor oversold. The STOCH value of 68.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BIIB.

Biogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNY	74 Outperform	$125.03B	21.43	7.34%	2.82%	-4.57%	2.96%
GILD	73 Outperform	$128.62B	22.34	32.58%	3.00%	4.71%	1144.01%
BIIB	70 Outperform	$17.40B	10.63	10.36%	―	-1.60%	39.71%
GSK	65 Neutral	$74.87B	23.23	19.11%	4.08%	6.28%	-47.11%
BMY	63 Neutral	$103.18B	―	31.99%	5.05%	4.62%	―
AMGN	60 Neutral	$150.99B	37.02	67.55%	3.25%	18.64%	-39.39%
Sector *	51 Neutral	$5.32B	3.39	-40.26%	2.89%	17.93%	2.48%

Biogen Corporate Events

Biogen Announces New Chief Accounting Officer Appointment

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.