Biogen (BIIB) AI Stock Analysis

• Market Cap: $24.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.67
• Revenue Growth: 5.00%
• EPS Growth: -1.03%
• Country: US
• Employees: 7,605
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 4.81
• Shares Outstanding: 146,702,270
• 10 Day Avg. Volume: 1,655,054
• 30 Day Avg. Volume: 2,020,685
• PEG Ratio: 0.34
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 8.86
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 6.65
• 1Y Price Target: $189.74
• Price Target Upside: 15.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 15.17
• Revenue Forecast (FY): $9.33B

• Rating: 74 Outperform
• Price Target: $168.00 ▲(2.18% Upside)

Biogen's overall stock score is driven by strong technical momentum and positive earnings call insights, highlighting growth in new products and a robust pipeline. Financial performance shows resilience, though challenges in revenue growth and declining margins persist. Valuation is moderate, with no dividend yield.

Positive Factors

Pipeline Advancements

Biogen's initiation of multiple Phase III studies indicates a robust pipeline, which is crucial for long-term growth and maintaining competitive advantage in the biotech industry.

Cash Flow Management

Strong cash flow management enhances Biogen's ability to invest in R&D and strategic initiatives, supporting sustainable growth and financial resilience.

Strategic Collaborations

Strategic collaborations, like the agreement with Vanqua, expand Biogen's portfolio and enhance its R&D capabilities, positioning it for long-term success in the biotech sector.

Negative Factors

Declining Profitability Margins

Declining profitability margins suggest challenges in cost management and operational efficiency, which could impact Biogen's long-term financial health and competitiveness.

MS Revenue Challenges

Competitive pressures in the MS market, particularly from generics, threaten Biogen's revenue streams and market position, potentially affecting long-term growth.

Arbitration with Eisai

The arbitration with Eisai highlights potential partnership challenges, which could disrupt strategic collaborations and impact Biogen's market strategy in Europe.

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, particularly those targeting neurological disorders. The company's key revenue streams include sales from its multiple sclerosis therapies, which account for a significant portion of its income. Additionally, Biogen earns revenue from royalties and collaborations with other pharmaceutical companies, often involving joint ventures or co-development agreements for new therapies. Their partnership with companies like Eisai for Alzheimer's treatments also plays a crucial role in their financial strategy. Furthermore, Biogen invests in research and development to create new drugs, which, once approved, can significantly enhance its product portfolio and drive future revenues.

Biogen Financial Statement Overview

Summary

Biogen's financial performance shows resilience with a strong balance sheet and improving cash flow generation. However, challenges in revenue growth and declining margins impact overall profitability. The company maintains a solid capital structure and effective cash management.

Income Statement

Biogen's income statement shows a mixed performance. The TTM gross profit margin is strong at 56.76%, but has decreased from previous years, indicating some pressure on cost management. The net profit margin is healthy at 15.98%, though it has declined from 29.95% in 2022. Revenue growth has been negative in recent years, but the TTM shows a slight recovery with a 0.69% increase. EBIT and EBITDA margins have also decreased, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.36 in the TTM, showing a decrease from previous years, which is positive. The return on equity has decreased to 9.25% in the TTM from 22.76% in 2022, suggesting reduced profitability. The equity ratio remains strong, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals a positive trend with a TTM free cash flow growth rate of 22.66%, indicating improved cash generation. The operating cash flow to net income ratio is 0.75, showing good cash conversion. The free cash flow to net income ratio is high at 0.93, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.99B	9.68B	9.84B	10.17B	10.98B	13.44B
Gross Profit	7.00B	7.37B	7.30B	7.90B	8.87B	11.64B
EBITDA	3.49B	3.00B	2.38B	3.54B	3.92B	5.11B
Net Income	1.61B	1.63B	1.16B	3.05B	1.56B	4.00B
Balance Sheet
Total Assets	29.21B	28.05B	26.84B	24.55B	23.88B	24.62B
Cash, Cash Equivalents and Short-Term Investments	3.96B	2.38B	1.05B	4.89B	3.80B	2.61B
Total Debt	6.59B	6.63B	7.34B	6.61B	7.60B	7.83B
Total Liabilities	11.00B	11.33B	12.05B	11.17B	12.92B	13.93B
Stockholders Equity	18.21B	16.72B	14.80B	13.40B	10.90B	10.70B
Cash Flow
Free Cash Flow	2.28B	2.52B	1.24B	1.14B	3.38B	3.81B
Operating Cash Flow	2.45B	2.88B	1.55B	1.38B	3.64B	4.23B
Investing Cash Flow	-158.00M	-799.20M	-4.09B	1.59B	-563.70M	-608.60M
Financing Cash Flow	-157.00M	-683.50M	137.00M	-1.76B	-2.09B	-5.27B

Biogen Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 164.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BIIB, the sentiment is Neutral. The current price of 164.42 is below the 20-day moving average (MA) of 176.93, below the 50-day MA of 173.67, and above the 200-day MA of 143.31, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 35.55 is Neutral, neither overbought nor oversold. The STOCH value of 9.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BIIB.

Biogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILD	78 Outperform	$150.44B	18.78	40.53%	2.52%	2.76%	6407.19%
AMGN	77 Outperform	$177.71B	25.51	81.71%	3.00%	11.03%	65.22%
GSK	77 Outperform	$99.76B	13.82	35.62%	3.41%	5.97%	128.66%
BIIB	74 Outperform	$24.73B	14.99	9.31%	―	5.00%	-1.03%
BMY	73 Outperform	$115.26B	19.12	33.84%	4.84%	1.26%	―
ABBV	66 Neutral	$383.08B	163.55	138.53%	2.87%	7.40%	-53.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%