BIIB

Biogen Inc

Healthcare


Presented:05/18/2017
Price:$252.81
Cap:$54.58B
Current Price:$191.55
Cap:$27.90B

Presented

Date05/18/2017
Price$252.81
Market Cap$54.58B
Ent Value$62.65B
P/E Ratio15.86x
Book Value$54.12
Div Yield0%
Shares O/S215.90M
Ave Daily Vol1,551,106
Short Int1.22%

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: AveXis Inc (AVXS), Biogen Inc (BIIB), Roche Holding Ltd (RHHBY)

Highlights

Biogen’s shares (BIIB) sold off ~8% heading into the April 25, 2017 Q1 earnings release, and after a brief rally, the stock fell again (by 11%). Overall, shares are down ~11% year-to-date, and while the selloff into earnings was attributable to nervousness about Spinraza, BIIB’s new spinal muscular atrophy (SMA) therapy, concern about the multiple sclerosis (MS) portfolio, and a pair of Street downgrades; the overall underperformance seems unjustified, in the presenter’s opinion. Spinraza sales were excellent, coming in at $47mm in Q1 (ahead of expectations), and the rest of the business was “stable”. He is comfortable being long the stock in the $250s and he sees a favorable risk/ reward over the next 12-24 months, with optionality around the Alzheimer’s pipeline as he looks out to 2018-19.

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Idea Discussion

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