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Biogen Inc. (BIIB) is one of the world’s leading biotechnology companies. Valued at $32.5 billion by market cap, the company pioneers therapies for neurological and neurodegenerative diseases globally. Renowned for breakthroughs like TECFIDERA, SPINRAZA, ADUHELM, and OCREVUS, Biogen leads in treating MS, Alzheimer's, and more. Its robust pipeline includes innovations for Parkinson's, neuropsychiatric disorders, and biosimilars. Collaborations with Acorda, Denali, and Genentech bolster its research prowess. Founded in 1978, Biogen continues to push boundaries from its Cambridge, Massachusetts headquarters, shaping the future of neurology and immunology with cutting-edge treatments and partnerships.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Biogen fits that category, boasting a market cap that exceeds this threshold, reflecting its size, significant influence, and dominance in the biotech industry. Biogen became a large-cap stock through pioneering biotech breakthroughs and strong market performance in neurology and immunology, attracting investor confidence and boosting its market cap.
Despite its strengths, Biogen slipped 22.4% from its 52-week high of $287.60, achieved in July last year. BIIB stock gained 3% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 8.1% returns during the same time frame.
In the longer term, shares of Biogen dipped 13.8% on a YTD basis and tumbled 21.6% over the past 52 weeks, substantially lagging behind NASX’s 18% gains in 2024 and 31.3% returns over the past 52 weeks.
To confirm the bearish trend, Biogen has remained consistently below the 200-day moving average and traded mostly below the 50-day moving average with a few fluctuations.
Biogen endured a tumultuous start to 2024 with compliance issues and disappointing outcomes for Aduhelm, its Alzheimer’s drug, dragging its stock into the red. The acquisition of Reata Pharmaceuticals also failed to meet expectations, further dampening investor sentiment.
However, a ray of hope emerged following its Q1 earnings release on April 24. Despite a 7% revenue drop to $2.3 billion, Biogen surprised with an 8% rise in adjusted EPS to $3.67, surpassing Wall Street estimates by 6.4%. This sparked an 11% rally in Biogen’s stock, signaling potential recovery amid the challenges.
Meanwhile, Vertex Pharmaceuticals Incorporated (VRTX) has surged ahead of Biogen with a 36.6% gain over the past 52 weeks and a robust 16.5% increase on a YTD basis.
Wall Street analysts remain moderately bullish on Biogen’s prospects. The stock has a consensus “Moderate Buy” rating from the 29 analysts covering it, and the mean target of $285 implies a potential upside of 27.7%.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
