AUS
NZ
UK
CA
USA
IND
Highlights:
Biogen Inc. (BIIB) has underperformed the broader market and key healthcare ETFs in recent years.
The company’s advancements in treatments for Alzheimer’s disease have yet to meet expectations.
Analyst consensus on BIIB remains "Moderate Buy," with some analysts maintaining an optimistic outlook.
Article:
Biogen Inc., (NASDAQ:BIIB) based in Cambridge, Massachusetts, is a leading biotechnology company specializing in the discovery, development, manufacturing, and delivery of therapies for neurological and neurodegenerative diseases. The company’s portfolio includes treatments for conditions such as multiple sclerosis, non-Hodgkin's lymphoma, rheumatoid arthritis, Crohn's disease, and psoriasis. Despite these offerings, Biogen has experienced significant underperformance in the market, with its shares declining 31.7% over the past year. In 2024, BIIB stock is down 39%, whereas the S&P 500 Index has risen by 25.2% on a year-to-date basis.
When comparing Biogen’s performance to the iShares Neuroscience and Healthcare ETF (IBRN), the divergence becomes even more apparent. The ETF has gained approximately 26.6% over the past year, while BIIB has posted double-digit losses. Additionally, the ETF’s 1% gain year-to-date contrasts sharply with Biogen’s significant losses during the same period.
Although Biogen has made strides in developing treatments targeting amyloid plaques, such as Aduhelm and Donanemab, these advancements have not delivered breakthrough results in significantly improving cognitive functions for Alzheimer’s patients. Despite acquiring smaller biotech companies with innovative approaches, the outcomes from these acquisitions have not met expectations. This has created an opportunity for new market players to introduce more effective therapies.
Biogen reported its third-quarter results on October 30, revealing a 6.4% year-over-year decline in adjusted earnings per share (EPS), which came in at $4.08. The company’s revenue was $2.5 billion, marking a 2.5% year-over-year decrease. For the full fiscal year, Biogen projects adjusted EPS to fall between $16.10 and $16.60.
The consensus among the 32 analysts covering Biogen is a “Moderate Buy,” based on 18 “Strong Buy” ratings, one “Moderate Buy,” and 13 “Holds.” However, this outlook has softened compared to a month ago when 19 analysts had rated the stock as a “Strong Buy.” Recently, Mizuho adjusted its outlook for Biogen, maintaining an “Outperform” rating but lowering its price forecast, while other analysts set higher price levels suggesting significant upside potential.
