Biogen (BIIB) AI Stock Analysis

• Market Cap: $23.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.69
• Revenue Growth: 3.48%
• EPS Growth: 31.44%
• Country: US
• Employees: 7,605
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 5.47
• Shares Outstanding: 146,614,600
• 10 Day Avg. Volume: 1,927,192
• 30 Day Avg. Volume: 1,761,598
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.23
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 7.97
• 1Y Price Target: $166.20
• Price Target Upside: 3.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 77 Outperform
• Price Target: $175.00 ▲(9.46% Upside)

Biogen's overall stock score reflects a strong financial position with robust product growth and positive market momentum. The company's strategic focus on new product launches and pipeline advancements supports a positive outlook, despite challenges in cash flow and international markets. Technical indicators and valuation suggest a balanced risk-reward profile, while the earnings call underscores a positive sentiment and improved financial guidance.

Positive Factors

Pipeline Advancements

The initiation of three Phase III studies highlights Biogen's commitment to innovation and long-term growth. This strategic focus on pipeline expansion can lead to new product offerings, enhancing competitive positioning and revenue potential.

Product Growth

Strong growth in new product revenue demonstrates Biogen's ability to successfully commercialize new therapies. This growth is crucial for offsetting declines in mature product lines and supports sustained revenue expansion.

Regulatory Approval

The approval of LEQEMBI in China for maintenance dosing expands Biogen's market reach and strengthens its position in the Alzheimer's treatment space, potentially driving significant revenue growth in a large market.

Negative Factors

Cash Flow Concerns

Declining free cash flow indicates challenges in cash generation, which could limit Biogen's ability to invest in R&D and strategic initiatives. This may impact long-term growth and financial flexibility if not addressed.

MS Revenue Challenges

Competitive pressures in international markets, particularly for MS treatments, could erode Biogen's market share and revenue. This highlights the need for strategic adjustments to maintain competitiveness.

Partnership Challenges

Arbitration with Eisai over commercialization allocations suggests potential partnership instability, which could disrupt collaborative efforts and impact Biogen's strategic initiatives in key markets.

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 used in treating neurological disorders. Key revenue streams include sales from its leading therapies such as Tecfidera, which is a top-selling oral treatment for multiple sclerosis, and Spinraza, a treatment for spinal muscular atrophy. The company also earns revenue from partnerships and collaborations with other pharmaceutical firms, as well as licensing agreements for its products. Additionally, Biogen invests heavily in research and development to bring new drugs to market, which can create future revenue opportunities. The company's strategic collaborations, particularly in the field of Alzheimer's disease, are significant factors contributing to its earnings potential.

Biogen Financial Statement Overview

Summary

Biogen's financial performance is solid with a strong gross profit margin of 75.41% and a stable balance sheet with low leverage. However, challenges in cash flow generation, particularly a negative free cash flow growth rate of -19.12%, and declining net profit margins are concerns.

Income Statement

Biogen's income statement shows a mixed performance. The TTM gross profit margin is robust at 75.41%, indicating strong profitability from core operations. However, the net profit margin has decreased to 15.31% from 16.87% in the previous year, reflecting a decline in net income relative to revenue. Revenue growth is modest at 1.84% TTM, showing a slight recovery from previous declines. EBIT and EBITDA margins have also decreased, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.37, indicating a conservative leverage approach. Return on equity is at 9.04% TTM, showing a decline from previous years but still demonstrating effective use of equity. The equity ratio stands at 62.25%, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals some concerns with a negative free cash flow growth rate of -19.12% TTM, indicating reduced cash generation from operations. The operating cash flow to net income ratio is 0.66, suggesting that operating cash flows are not fully covering net income. However, the free cash flow to net income ratio remains healthy at 0.88, showing that a significant portion of net income is converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.00B	9.68B	9.84B	10.17B	10.98B	13.44B
Gross Profit	7.54B	7.37B	7.30B	7.90B	8.87B	11.64B
EBITDA	2.79B	2.83B	2.38B	4.36B	3.92B	5.73B
Net Income	1.53B	1.63B	1.16B	3.05B	1.56B	4.00B
Balance Sheet
Total Assets	28.33B	28.05B	26.84B	24.55B	23.88B	24.62B
Cash, Cash Equivalents and Short-Term Investments	2.76B	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	10.70B	11.33B	12.05B	11.17B	12.92B	13.93B
Stockholders Equity	17.63B	16.72B	14.80B	13.40B	10.90B	10.70B
Cash Flow
Free Cash Flow	1.86B	2.52B	1.24B	1.14B	3.38B	3.81B
Operating Cash Flow	2.12B	2.88B	1.55B	1.38B	3.64B	4.23B
Investing Cash Flow	-1.30B	-799.20M	-4.10B	1.58B	-563.70M	-608.60M
Financing Cash Flow	-33.40M	-683.50M	149.30M	-1.75B	-2.09B	-5.27B

Biogen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 159.88 is above the 20-day moving average (MA) of 143.90, above the 50-day MA of 138.00, and above the 200-day MA of 135.34, indicating a bullish trend. The MACD of 3.54 indicates Negative momentum. The RSI at 74.25 is Negative, neither overbought nor oversold. The STOCH value of 95.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BIIB.

Biogen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSK	78 Outperform	$88.18B	19.95	23.04%	3.80%	3.46%	-13.29%
BIIB	77 Outperform	$23.44B	15.30	9.13%	―	3.48%	31.44%
AMGN	70 Outperform	$160.37B	24.37	99.14%	3.15%	13.10%	110.67%
BMY	68 Neutral	$92.51B	18.34	29.31%	5.46%	2.57%	―
GILD	68 Neutral	$139.83B	22.42	33.26%	2.79%	3.69%	501.26%
ABBV	68 Neutral	$413.22B	111.32	112.90%	2.77%	6.05%	-29.75%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%