10Y annualized return is
negative
at -11.3% per year
BIIB has met or exceeded earnings expectations in
the majority of
recent quarters (8/10)
Attractive P/E Ratio
Low Price-to-Book Ratio
Strong Gross Profit Margin
Robust Net Profit Margin
Low Debt Levels
Strong Interest Coverage Ratio
Strong Product Pipeline
Effective Cost Management
Resilient MS Franchise
Expansion of New Product Revenue
Innovative Pipeline Developments
Price-to-Sales Ratio Consideration
Moderate Return on Equity
Quick Ratio Below 1
Declining MS Revenue
Market Uncertainty and Competition
Reimbursement Challenges in New Markets
Overall, Biogen demonstrates a robust business model characterized by innovative products and effective cost management, though it faces challenges from declining MS revenue and market competition. The future looks promising with a strong pipeline and growth in new product revenues, but reimbursement hurdles and market uncertainties remain concerns.
Analysis Date: February 12, 2025
Last Updated: March 11, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Biogen Inc. is a company that makes medicines to help people with brain and nerve diseases. They create treatments for conditions like multiple sclerosis, Alzheimer's disease, and spinal muscular atrophy. Some of their well-known products include TECFIDERA for multiple sclerosis and SPINRAZA for spinal muscular atrophy. Essentially, Biogen focuses on improving the lives of people with serious neurological conditions by providing effective therapies.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
Following the nod in the EU, BIIB & Eisai's Leqembi becomes the first therapy to slow the progression of early Alzheimer's disease in the region.
In the European Union (EU), lecanemab is indicated for the treatment of adult patients with a clinical diagnosis of mild cognitive impairment and mild...
The European Commission on Tuesday authorized the use of Eisai and Biogen's drug to treat mild cognitive impairment in the early stages of Alzheimer's...
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$211.48
Current Market Price: $123.55
IV/P Ratio: 1.71x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
42.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for BIIB
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (10.98)
P/B ratio ≤ 1.5 (1.03)
Current ratio ≥ 2.0 (1.35x)
Long-term debt < Net current assets (2.53x)
Margin of safety (42.0%)
BIIB does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
10.06%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
78.54%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
17.23%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A gross profit margin of 78.54% reflects strong efficiency in production and pricing, indicating that the company retains a significant portion of revenue as profit.
The net profit margin of 17.23% shows effective cost management and a strong bottom line relative to revenue, indicating healthy profitability.
The return on equity (ROE) of 10.06% is reasonable but may indicate that there is room for improvement in generating returns for shareholders compared to industry leaders.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.28x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.35x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The debt-to-equity ratio of 0.28 indicates a conservative capital structure with manageable debt levels, suggesting lower financial risk.
An interest coverage ratio of 15.43 shows that the company can easily meet its interest obligations, indicating strong earnings relative to interest expenses.
The quick ratio of 0.90 suggests potential liquidity concerns as it indicates that the company may struggle to cover its short-term liabilities without relying on inventory.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Revenue
Biogen has developed four pioneering products in 2024 for Alzheimer's, Friedreich’s ataxia, depression, and ALS, each representing first-in-class treatments. This innovation showcases Biogen’s capacity for significant advancements in neurological disorders, which can strengthen its market position.
The company has successfully redesigned its operating model to reduce operating expenses while reallocating resources towards growth initiatives. This strategic financial management is expected to enhance profitability.
Despite facing competition, Biogen's core pharmaceutical business grew for the first time in four years. Their ability to offset declines in the multiple sclerosis franchise with revenue from new product launches is a significant strength.
The company is facing an erosion of revenue from its multiple sclerosis products due to increased competition and impending biosimilar entries, which poses a risk to overall revenue stability.
The company anticipates continued revenue growth from newly launched products like LEQEMBI and SKYCLARYS, which are expected to offset declines from older products. The increasing number of patients on therapy indicates a positive trend for future revenues.
Biogen is focusing on a multi-billion dollar portfolio of key developments slated to read out starting in 2026, indicating strong future prospects if these products reach the market.
The potential for generic competition and biosimilars in the MS space can create significant pressure on revenue. With a forecasted decline, the company must effectively navigate these challenges to maintain growth.
While expanding into new geographical markets, there may be hurdles related to reimbursement processes, which can slow down revenue growth from newly launched products.
Insider trading data shows purchase and sale activities by company executives and board members.
Insider trading patterns can provide insights into how company executives and board members view the stock's future prospects.
Insiders are buying significantly more than selling (ratio: 2.44x)
Total Bought
Total value of insider purchases in recent quarters
$187671
Higher values indicate stronger insider confidence
Total Sold
Total value of insider sales in recent quarters
$76951
Lower values relative to buying indicate possible undervaluation
Active Insiders
Number of insiders trading in recent quarters
1
Limited insider activity
Recent Trend
Change in insider trading pattern
BIIB: No trend data available