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Biogen Inc. (BIIB), headquartered in Cambridge, Massachusetts, with a market cap of $21.9 billion, is a leading biotechnology company specializing in developing and delivering innovative therapies. Known for its cutting-edge research and commitment to addressing unmet medical needs, Biogen focuses on neurological and neurodegenerative diseases, offering a diverse portfolio of treatments for conditions such as multiple sclerosis, Alzheimer's disease, and spinal muscular atrophy, serving patients worldwide.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” a category Biogen exemplifies through its strong market presence and leadership in the biotechnology industry. Biogen’s commitment to scientific innovation, quality, and patient-centered solutions underscores its position as a key player in advancing neuroscience and addressing the evolving needs of patients worldwide.
Shares of this biotech company are currently trading 43.9% below their 52-week high of $268.30, reached on Jan. 3. Over the past three months, the stock has fallen 24.6%, underperforming the Health Care Select Sector SPDR Fund (XLV), which declined 11.4% over the same period.
Over the past 52 weeks, BIIB stock has declined 39.4% and is down 41.8% on a YTD basis, significantly underperforming the XLV, which has gained 3.8% over the past year and 2.2% on a YTD basis.
Biogen has been trading below its 50-day moving average since late July and remaining below its 200-day moving average over the past year, indicating a bearish trend.
Biogen has struggled with recent underperformance in the healthcare sector, driven by concerns surrounding its pipeline of new drugs and increasing competition from generic alternatives.
On Oct. 30, BIIB stock declined over 1% following its Q3 earnings report. Its adjusted EPS of $4.08 declined 6.4% year over year, while revenue declined 2.5% annually to $2.5 billion. These results highlight ongoing challenges in sustaining growth amid competitive pressures and evolving market dynamics.
Despite these headwinds, Biogen has raised its full-year 2024 financial guidance, increasing its non-GAAP EPS outlook to a range of $16.10 to $16.60, up from the prior range of $15.75 to $16.25. This represents an 11% growth at the midpoint compared to 2023.
Its rival, Gilead Sciences, Inc. (GILD), has outperformed BIIB, with a rise of 14.6% over the past year and 13.6% on a YTD basis.
Despite Biogen's recent underperformance, analysts remain cautiously optimistic about BIIB's prospects. The stock holds a consensus "Moderate Buy" rating from 32 covering analysts. Plus, the stock has a mean price target of $244.83, indicating a potential upside of 62.7% from its current level.
