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Biogen Inc BIIB

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Stock XNAS Rating as of
$188.74 −2.06 (1.08%)
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As of Delayed Price Closed

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Biogen Still Has Competitive Advantages in Neurology, but Its Moat Looks Narrow

Karen Andersen

We think Biogen's neurology, immunology, and focus on rare diseases support a narrow moat. Biogen's strategy has its roots in the 2003 merger of Biogen (multiple sclerosis drug Avonex) and Idec (cancer drug Rituxan). The firm expanded its neurology portfolio beyond MS, including the blockbuster rare neuromuscular disease drug Spinraza. We see Biogen as a firm in transition, as MS revenue fades and launches of several new drugs for Alzheimer's, depression, and rare diseases begin to ramp up.

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Price vs Fair Value

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BIIB is trading at a 313% premium.
Price
$188.74
Fair Value
$229.00
Uncertainty
High
1-Star Price
$237.17
5-Star Price
$157.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Biogen is a significant player in 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 US.

Bears

Biogen's MS portfolio is under pressure from newer branded drugs as well as generic and biosimilar versions of its older therapies.

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Trading Information

Previous Close Price
$190.80
Day Range
$188.05–191.86
52-Week Range
$188.05–269.43
Bid/Ask
$188.14 / $189.04
Market Cap
$27.49 Bil
Volume/Avg
1.5 Mil / 1.0 Mil

Key Statistics

Price/Earnings (Normalized)
11.99
Price/Sales
2.85
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
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 (oncology) and Ocrevus (multiple sclerosis) are marketed via a collaboration with Roche. Biogen markets several multiple sclerosis drugs including Plegridy, Tysabri, Tecfidera, and Vumerity. Biogen's newer products include Spinraza (SMA, with partner Ionis), Leqembi (Alzheimers, with partner Eisai), Skyclarys (Friedreich's Ataxia, Reata), Zurzuvae (postpartum depression, Sage), and Qalsody (ALS, Ionis). Biogen has several drug candidates in phase 3 trials in neurology, immunology, and rare diseases.
Sector
Healthcare
Industry
Drug Manufacturers - General
Stock Style Box
Mid Value
Total Number of Employees
7,570
Website
https://www.biogen.com

Competitors

Valuation

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Metric
BIIB
NVS
SNY
Price/Earnings (Normalized)
 11.9916.2612.37
Price/Book Value
 1.725.551.94
Price/Sales
 2.854.832.76
Price/Cash Flow
 10.8614.8114.23
Price/Earnings
BIIB
NVS
SNY

Financial Strength

Metric
BIIB
NVS
SNY
Quick Ratio
 1.280.610.52
Current Ratio
 2.290.931.00
Interest Coverage
 5.3512.348.61
Quick Ratio
BIIB
NVS
SNY

Profitability

Metric
BIIB
NVS
SNY
Return on Assets (Normalized)
 8.88%13.97%7.59%
Return on Equity (Normalized)
 15.84%33.01%14.17%
Return on Invested Capital (Normalized)
 11.21%20.66%10.36%
Return on Assets
BIIB
NVS
SNY

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