Biogen (BIIB) AI Stock Analysis

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Biogen

(NASDAQ:BIIB)

Rating:72Outperform

Price Target:

$142.00

▲(8.93%Upside)

Biogen's overall stock score is supported by a solid financial foundation and an attractive valuation. The company's strategic pivot towards new product growth is promising, despite challenges in declining MS revenue and potential tariff impacts. Technical indicators provide a moderately positive outlook, although the stock faces resistance at higher moving averages.

Positive Factors

Collaboration and Investment

Biogen announced a collaboration with City Therapeutics to develop next-gen RNAi or cityRNAs for a CNS target, indicating a strong commitment to the collaboration.

Regulatory Approvals

The recent EU approval of Leqembi might help gain more traction.

Sales Performance

Leqembi sales were ahead of guidance due to stronger performance in Japan and China.

Negative Factors

Competitive Pressures

Significant biosimilar competition to Ocrevus and more conservative assumptions related to the multiple sclerosis franchise have led to a decrease in the price target from $265 to $220.

Investor Concerns

The stock has experienced a significant pullback, decreasing by 21% this year and around 50% since its 52-week high, due to investor concerns over competitive pressures.

Sales Expectations

Leqembi's future sales guidance is below consensus expectations, indicating lower anticipated growth.

Biogen (BIIB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$19.32B

Dividend YieldN/A

Average Volume (3M)1.65M

Price to Earnings (P/E)12.9

Beta (1Y)0.61

Revenue Growth1.25%

EPS Growth26.10%

CountryUS

Employees7,605

SectorHealthcare

Sector Strength41

IndustryDrug Manufacturers - General

Share Statistics

EPS (TTM)3.02

Shares Outstanding146,527,830

10 Day Avg. Volume1,568,091

30 Day Avg. Volume1,647,127

Financial Highlights & Ratios

PEG Ratio-1.33

Price to Book (P/B)1.10

Price to Sales (P/S)0.00

P/FCF Ratio8.14

Enterprise Value/Market Cap1.18

Enterprise Value/Revenue0.59

Enterprise Value/Gross Profit3.06

Enterprise Value/Ebitda2.13

Forecast

1Y Price Target

$169.96

Price Target Upside30.38% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering29

Biogen Business Overview & Revenue Model

Company DescriptionBiogen 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 MoneyBiogen generates revenue primarily through the sale of its pharmaceutical products, particularly in the neurology sector. Key revenue streams include its leading multiple sclerosis therapies, such as Tecfidera, Avonex, and Tysabri, as well as Spinraza for treating spinal muscular atrophy. Biogen also earns income from its biosimilars portfolio, which includes treatments for conditions like immune disorders and certain cancers. Additionally, the company engages in strategic collaborations and partnerships with other biotech and pharmaceutical firms to enhance its pipeline and expand its market reach, further contributing to its financial performance.

Biogen Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas are driving growth and which may need strategic adjustments to enhance Biogen's overall performance.

Chart InsightsBiogen's revenue from its Multiple Sclerosis segment continues to decline, reflecting increased competition from biosimilars and generics. However, the Rare Disease segment shows promising growth, particularly in recent quarters, aligning with Biogen's strategic focus on new product launches. The earnings call highlights strong performance in new products like LEQEMBI and SKYCLARYS, which are offsetting some of the declines in traditional segments. Despite anticipated revenue declines in 2025, Biogen's robust pipeline and strategic investments suggest potential for long-term growth.

Data provided by:

Main Street Data

Biogen Earnings Call Summary

Earnings Call Date:May 01, 2025

(Q1-2025)

% Change Since: 7.66%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Positive

The earnings call indicates a positive outlook for Biogen, with strong growth in new product segments and significant pipeline progress. However, challenges remain in the form of declining MS revenue and potential tariff impacts.

Q1-2025 Updates

Positive Updates

Strong Start to the Year

Biogen reported a strong first quarter with a significant shift in its revenue composition. The new product portfolio, including ZURZUVAE, LEQEMBI, and VUMERITY, now represents about 45% of the company's product revenue.

LEQEMBI Commercial Success

LEQEMBI achieved $96 million in revenue. The product has received marketing authorization in the EU, reinforcing its efficacy, safety profile, and importance.

SKYCLARYS Growth

SKYCLARYS generated worldwide sales of $124 million, marking a 59% year-over-year increase and 21% quarter-over-quarter growth. The product has been launched in 26 markets.

Pipeline Progress

Biogen initiated the Phase 3 TRANSCEND study for felzartamab in AMR and received FDA Fast Track designation for their ASO targeting BIIB080 in Alzheimer's before even reading out Phase 2.

Negative Updates

Decline in MS Revenue

Biogen's global MS product revenue declined by 11% year-over-year, driven primarily by competition from biosimilars in Europe and generic competition for TECFIDERA globally.

Tariff Uncertainties

Biogen is facing complex and uncertain tariff situations, which could potentially impact its financial outlook in the future, although it is not expected to affect 2025 materially.

Company Guidance

In the recent Biogen earnings call, the company provided guidance for the fiscal year 2025, emphasizing the evolution of its product portfolio and financial outlook. Biogen anticipates a mid-single-digit decline in total revenue for 2025, primarily due to increased competition and expected declines in its MS business. Despite these challenges, the company projects growth in its launch products, which together generated approximately $200 million in revenue in Q1, reflecting a 22% increase quarter-over-quarter. The company also highlighted its strong balance sheet, with $2.6 billion in cash and $3.7 billion in net debt, enabling continued investment in both internal and external growth opportunities. Biogen's full-year non-GAAP diluted earnings per share guidance has been updated to $14.50-$15.50, reflecting the impact of a $165 million upfront payment for the Stoke transaction and a $0.20 tailwind from foreign exchange impacts. Additionally, Biogen indicated that even if the recently announced U.S. tariffs were implemented, they would not materially affect the company's 2025 financial outlook, largely due to its U.S.-based manufacturing and global inventory positions.

Biogen Financial Statement Overview

Summary

Biogen shows financial stability with a strong equity base and efficient cost management, reflected in high profit margins. However, the declining revenue trend poses a risk to future profitability and cash flow growth. Maintaining this financial position will require addressing revenue challenges to ensure sustainable growth.

Income Statement

Positive

Biogen's income statement reflects a stable financial position with a strong gross profit margin of 86.2% for TTM, indicating efficient cost management. However, revenue has been declining over the years, with a slight decrease of 1.7% in the latest TTM compared to the previous year. The net profit margin stands at 15.2% for TTM, showcasing decent profitability despite the revenue decline. EBIT and EBITDA margins are relatively healthy, but the overall revenue trend poses a risk.

Balance Sheet

Positive

The balance sheet of Biogen reveals a solid equity base with a debt-to-equity ratio of 0.27, indicating low leverage and financial stability. The equity ratio is 63.2%, highlighting a strong financial structure with more reliance on equity than debt. However, the overall asset base has been relatively stable with minimal growth, which could limit future expansion.

Cash Flow

Positive

Biogen's cash flow performance shows a robust operating cash flow to net income ratio of 1.75 for TTM, indicating strong cash generation relative to profitability. However, the free cash flow growth rate has been negative due to declining revenue, with a slight decrease in free cash flow compared to previous periods. This highlights potential challenges in sustaining cash flow growth if revenue decline continues.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
9.82B	9.68B	9.84B	10.17B	10.98B	13.44B
	Gross Profit
7.42B	7.37B	7.30B	7.90B	8.87B	11.64B
	EBIT
2.27B	2.22B	2.10B	2.32B	2.84B	4.55B
	EBITDA
2.70B	2.83B	2.38B	4.36B	2.49B	5.73B
	Net Income Common Stockholders
1.48B	1.63B	1.16B	3.05B	1.56B	4.00B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	2.38B	1.05B	4.89B	3.80B	2.61B
	Total Assets
26.57B	28.05B	26.84B	24.55B	23.88B	24.62B
	Total Debt
6.95B	6.63B	7.34B	6.61B	7.60B	7.83B
	Net Debt
5.87B	4.26B	6.29B	3.19B	5.34B	6.50B
	Total Liabilities
11.35B	11.33B	12.05B	11.17B	12.92B	13.93B
	Stockholders Equity
15.21B	16.72B	14.80B	13.39B	10.96B	10.69B
Cash Flow		Free Cash Flow
2.30B	2.52B	1.24B	1.14B	3.35B	3.68B
	Operating Cash Flow
2.58B	2.88B	1.55B	1.38B	3.64B	4.23B
	Investing Cash Flow
-780.50M	-799.20M	-4.10B	1.58B	-563.70M	-608.60M
	Financing Cash Flow
-266.90M	-683.50M	149.30M	-1.76B	-2.09B	-5.27B

Biogen Technical Analysis

Technical Analysis Sentiment

Positive

Last Price130.36

Price Trends

50DMA

124.33

Positive

100DMA

133.28

Negative

200DMA

155.20

Negative

Market Momentum

MACD

2.15

Negative

RSI

56.55

Neutral

STOCH

68.55

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIIB, the sentiment is Positive. The current price of 130.36 is above the 20-day moving average (MA) of 126.82, above the 50-day MA of 124.33, and below the 200-day MA of 155.20, indicating a neutral trend. The MACD of 2.15 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 68.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 1 New Risks

The increasing use of AI-based software presents new risks and challenges and could adversely affect our business and reputation. Q4, 2024

Biogen Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMGN	75 Outperform	$155.70B	26.43	105.67%	3.23%	15.59%	56.99%
BIIB	72 Outperform	$19.32B	12.87	9.19%	―	1.25%	26.10%
GILD	71 Outperform	$136.00B	22.99	32.51%	2.84%	4.63%	1144.01%
SNY	68 Neutral	$121.57B	20.71	7.34%	3.25%	-4.57%	2.96%
BMY	63 Neutral	$97.58B	17.96	31.99%	5.09%	4.62%	―
GSK	63 Neutral	$82.21B	21.11	22.26%	3.86%	4.17%	-29.96%
Sector *	54 Neutral	$5.28B	3.29	-45.38%	2.80%	16.77%	-0.08%

* Healthcare Sector Average

Performance Comparison

BIIB

Biogen

130.36

-95.07

-42.17%

AMGN

Amgen

287.10

-8.39

-2.84%

BMY

Bristol-Myers Squibb

47.84

8.30

20.99%

GILD

Gilead Sciences

110.46

48.10

77.13%

GSK

GlaxoSmithKline

41.15

1.64

4.15%

SNY

Sanofi

49.76

2.29

4.82%

Biogen Corporate Events

Private Placements and Financing

Biogen Completes $1.75 Billion Notes Issuance

Neutral

May 12, 2025

On May 12, 2025, Biogen Inc. completed the issuance and sale of $1.75 billion in senior unsecured notes, with varying maturities and interest rates, to retire its outstanding 4.050% Senior Notes due 2025. The company plans to use the proceeds, along with cash on hand, to manage its debt obligations and for general corporate purposes, potentially impacting its financial flexibility and market positioning.

The most recent analyst rating on (BIIB) stock is a Buy with a $316.00 price target. To see the full list of analyst forecasts on Biogen stock, see the BIIB Stock Forecast page.

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.