Biotech stock Biogen (NASDAQ:BIIB) turned in its earnings report recently, and the news wasn’t good. Disappointments showed up throughout the list and left investors with a bad taste in their mouths. It also left Biogen down over 6% in Tuesday morning’s trading.
Biogen posted $2.4 billion in revenue during the fourth quarter of 2023, which was roughly 6% lower than it was in 2022’s fourth quarter. This came out below consensus projections. The individual drugs that made up that overall decline, meanwhile, didn’t offer much help. Revenue for its multiple sclerosis drug came out down around 8% against this time last year. Tecfidera and Avonex saw declines as well, with Tecfidera down roughly 18% and Avonex down about 10%. Even Vumerity, which saw a rise of about 4%, turned out to be less of a rise than expected.
A Series of Unfortunate Events
One of the biggest issues Biogen faced this quarter was the loss of Aduhelm, its Alzheimer’s treatment. The previously disclosed costs of canceling that drug weighed heavily on earnings this quarter. Yet, there are some signs of life, particularly from Leqembi. While Leqembi—its newest Alzheimer’s treatment—didn’t fare so well, it offers some hope for the future. Its topline contribution wasn’t all that great, but it’s still getting started in a market where Biogen just pulled its counterpart. As a result, it should have the field all to itself on Biogen’s end.
What Is the Target Price for Biogen?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BIIB stock based on 13 Buys and four Holds assigned in the past three months, as indicated by the graphic below. After a 20.85% loss in its share price over the past year, the average BIIB price target of $309.06 per share implies 35.09% upside potential.
