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Biogen (BIIB)
NASDAQ:BIIB

Biogen (BIIB) AI Stock Analysis

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BI

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)

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
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
70
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
75
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
65
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
9.82B9.68B9.84B10.17B10.98B13.44B
Gross Profit
7.42B7.37B7.30B7.90B8.87B11.64B
EBIT
2.27B2.22B2.10B2.32B2.84B4.55B
EBITDA
2.70B2.83B2.38B4.36B2.49B5.73B
Net Income Common Stockholders
1.48B1.63B1.16B3.05B1.56B4.00B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.07B2.38B1.05B4.89B3.80B2.61B
Total Assets
26.57B28.05B26.84B24.55B23.88B24.62B
Total Debt
6.95B6.63B7.34B6.61B7.60B7.83B
Net Debt
5.87B4.26B6.29B3.19B5.34B6.50B
Total Liabilities
11.35B11.33B12.05B11.17B12.92B13.93B
Stockholders Equity
15.21B16.72B14.80B13.39B10.96B10.69B
Cash FlowFree Cash Flow
2.30B2.52B1.24B1.14B3.35B3.68B
Operating Cash Flow
2.58B2.88B1.55B1.38B3.64B4.23B
Investing Cash Flow
-780.50M-799.20M-4.10B1.58B-563.70M-608.60M
Financing Cash Flow
-266.90M-683.50M149.30M-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
1.
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
75
Outperform
$155.70B26.43105.67%3.23%15.59%56.99%
72
Outperform
$19.32B12.879.19%1.25%26.10%
71
Outperform
$136.00B22.9932.51%2.84%4.63%1144.01%
SNSNY
68
Neutral
$121.57B20.717.34%3.25%-4.57%2.96%
BMBMY
63
Neutral
$97.58B17.9631.99%5.09%4.62%
GSGSK
63
Neutral
$82.21B21.1122.26%3.86%4.17%-29.96%
54
Neutral
$5.28B3.29-45.38%2.80%16.77%-0.08%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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.