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Biogen Inc BIIB

Morningstar Rating
$215.70 −0.48 (0.22%)
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Company Report

Biogen's Neurology and Rare Disease Drugs Support a Wide Moat Despite Multiple Sclerosis Headwinds

We think Biogen's specialty-market-focused drug portfolio and novel, neurology-focused pipeline create a wide moat. Biogen's strategy has its roots in the 2003 merger of Biogen (multiple sclerosis drug Avonex) and Idec (cancer drug Rituxan). Biogen is expanding its neurology portfolio beyond MS, including blockbuster neuromuscular disease drug Spinraza and recently launched Alzheimer's disease drug Leqembi.

Price vs Fair Value

BIIB is trading at a 28% discount.
Price
$216.69
Fair Value
$439.00
Uncertainty
High
1-Star Price
$558.85
5-Star Price
$822.80
Economic Moat
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Capital Allocation
Mbpyfpxbd

Bulls Say, Bears Say

Bulls

Biogen leads the $20 billion global MS market with Avonex, Plegridy, Tysabri, and Tecfidera. The launch of Vumerity partly protects Tecfidera sales from generic headwinds in the U.S.

Bears

Injectable MS therapies like Avonex have lost their edge, as branded oral competitors and generic injectables have launched and Tysabri looks vulnerable to biosimilars by 2024.

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News

Trading Information

Previous Close Price
$216.18
Day Range
$214.79217.42
52-Week Range
$211.07319.71
Bid/Ask
$215.65 / $215.88
Market Cap
$31.37 Bil
Volume/Avg
180,269 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
14.69
Price/Sales
3.20
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel multiple sclerosis drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is copromoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with Sobi) were spun off as part of Bioverativ in 2017. Biogen's newer products include Spinraza (SMA, with partner Ionis), Leqembi (Alzheimers, with partner Eisai), Skyclarys (Friedreich's Ataxia, Reata), Zurzuvae (post-partum depression, Sage), and Qalsody (ALS, Ionis). Biogen has several drug candidates in phase 3 trials in neurology-related fields.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Mid Value
Total Number of Employees
7,570

Competitors

Valuation

Metric
BIIB
SNY
RHHBY
Price/Earnings (Normalized)
14.6910.4311.50
Price/Book Value
2.121.625.72
Price/Sales
3.202.483.00
Price/Cash Flow
14.3412.1211.02
Price/Earnings
BIIB
SNY
RHHBY

Financial Strength

Metric
BIIB
SNY
RHHBY
Quick Ratio
0.920.830.99
Current Ratio
2.001.271.35
Interest Coverage
5.1311.0314.93
Quick Ratio
BIIB
SNY
RHHBY

Profitability

Metric
BIIB
SNY
RHHBY
Return on Assets (Normalized)
8.29%8.05%17.03%
Return on Equity (Normalized)
15.11%14.38%53.42%
Return on Invested Capital (Normalized)
10.01%10.85%26.30%
Return on Assets
BIIB
SNY
RHHBY
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