10 Best Genomics Stocks To Buy Right Now

3. Biogen Inc. (NASDAQ:BIIB)

Upside potential as of November 14: 58.79%

Biogen Inc.’s (NASDAQ:BIIB) approach can be traced back to the 2003 merger of Idec (the traditional blood cancer medication Rituxan) and Biogen (Avonex, which treats multiple sclerosis, or MS). By adding the popular Spinraza for spinal muscular atrophy, or SMA, a rare neuromuscular condition, the company broadened its neurology portfolio beyond MS.

Given the decline in MS revenue and the rise in new drugs for rare diseases, depression, and Alzheimer’s, analysts view Biogen Inc. (NASDAQ:BIIB) as a company undergoing a shift. Numerous therapeutic candidates from the company are undergoing phase 3 trials in the areas of immunology, neurology, and rare disorders. Rituxan and the next-generation antibodies Ocrevus (for multiple sclerosis) and Gazyva (for cancer) are currently commercialized under a partnership with Roche. Biogen sells a number of medications for multiple sclerosis, such as Vumerity, Tecfidera, Tysabri, and Plegridy. Biogen’s more recent offerings are Qalsody (ALS, Ionis), Zurzuvae (postpartum depression, Sage), Skyclarys (Friedreich’s Ataxia, Reata), Leqembi (Alzheimer’s, with partner Eisai), and Spinraza (SMA, with partner Ionis).

The third-quarter 2024 financial results exceeded market consensus projections in terms of revenue and adjusted EPS. Biogen Inc.’s (NASDAQ:BIIB) performance was improved by its control over operational costs and tax rate, even though its gross margin decreased. Effective cost control and investments in new product launches have contributed to the management’s improved EPS projection for 2024, which is encouraging.

Biogen Inc. (NASDAQ:BIIB) also benefits from its strong pipeline, which shows promise in areas like lupus and Alzheimer’s medicines. The company’s financial stability is increased by its ability to sustain strong cash flow from its core legacy products in spite of competition.

On November 15, 2024, Baird maintained an Outperform rating on Biogen Inc. (NASDAQ:BIIB) and increased the price target from $294 to $300.