BIIB

Biogen Inc

Healthcare


Presented:02/22/2017
Price:$287.63
Cap:$62.42B
Current Price:$191.55
Cap:$27.90B

Presented

Date02/22/2017
Price$287.63
Market Cap$62.42B
Ent Value$63.15B
P/E Ratio17x
Book Value$56.23
Div Yield0%
Shares O/S217.00M
Ave Daily Vol1,860,216
Short IntN/A

Current

Price$191.55
Market Cap$27.90B
Biogen, Inc. is a global biotechnology company, which focuses on discovering, developing, manufacturing and delivering therapies for neurological, autoimmune and hematologic disorders. Its products include AVONEX, PLEGRIDY, TECFIDERA, TYSABRI, and FAMPYRA for multiple sclerosis, ALPROLIX for hemophilia B and ELOCTATE for hemophilia A. The company also collaborates on the development and commercialization of RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia and other conditions and share profits and losses for GAZYVA which is approved for the treatment of chronic lymphocytic leukemia. Biogen was founded by Phillip Allen Sharp in 1978 and is headquartered in Cambridge, MA.

Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Biogen Inc (BIIB), Novartis AG (NVS)

Highlights

The presenter is not yet short shares of Biogen (BIIB), but is looking for an opportunity to establish a short position within the next 6-12 months. With volatility relatively cheap now, he is considering putting the trade on; however, the success of the bearish position will hinge on generic versions of multiple sclerosis (MS) blockbusters gaining traction in the US market. Prior to the spin-off of its hemophilia franchise, ~70% of BIIB’s revenue came from the sale of MS therapies. Biogen treats an estimated 38% of MS patients globally (over 300k); and Tecfidera contributed ~$4 billion to 2016 sales (Avonex and Tysabri contributed $2.3 billion and $2 billion, respectively, out of ~$11.5 billion total sales). Post-spin, the concentration is higher (>80%, said the presenter), and the pressure from generic competition will only increase over the next 2-5 years.

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Idea Discussion

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