7. Biogen Inc. (NASDAQ:BIIB)
Forward Price to Earnings Ratio: 10.53
Earnings Growth: 11.50%
Number of Hedge Fund Holders: 46
Biogen Inc. (NASDAQ:BIIB) is a biotechnology company that specializes in developing treatments for serious neurological diseases. The company focuses on treating key target conditions including Multiple Sclerosis, Spinal Muscular Atrophy, Alzheimer’s Disease, and Amyotrophic Lateral Sclerosis.
It has developed several important treatments for each of the key target areas including drugs like TECFIDERA, AVONEX, and TYSABRI that help manage Multiple Sclerosis symptoms. Other notable drugs by the company include SPINRAZA for Spinal Muscular Atrophy and LEQEMBI which helps slow down Alzheimer’s symptoms.
Biogen Inc. (NASDAQ:BIIB) continues to invest heavily in research and development and launched products related to Alzheimer’s disease, rare diseases, and depression during the third quarter of fiscal 2024. The revenue from the product launches helped the company offset the year-over-year decline in Multiple Sclerosis product revenue.
For instance, LEQEMBI’s global market sales amounted to $67 million during the quarter with around $39 million coming from the United States alone. Overall, the net revenue of the company for the quarter was $2.5 billion down 3% compared to the last year. On the bright side, the GAAP EPS of $2.66 was up around 666% year-over-year, indicating ongoing financial adjustments.
The pipeline of Biogen Inc. (NASDAQ:BIIB) looks robust as the company achieved several development milestones during the quarter. For instance, the Dapirolizumab pegol Phase 3 study met the primary endpoint in systemic lupus erythematosus and the company initiated a second phase 3 study for the drug during the quarter.
Management has increased its full-year guidance on the back of recent developments and is now expecting non-GAAP diluted EPS to be between $16.10 and $16.60, representing an approximate 11% growth compared to 2023. President and Chief Executive Officer Christopher A. Viehbacher believes the company is progressing towards its goal of returning to sustainable growth. Biogen Inc. (NASDAQ:BIIB) is one of the cheapest NASDAQ stocks to invest in now.
Patient Capital Opportunity Equity Strategy stated the following regarding Biogen Inc. (NASDAQ:BIIB) in its Q2 2024 investor letter:
“Biogen Inc. (NASDAQ:BIIB) is another name that we believe is underappreciated. As a global biopharmaceutical business, the company is most well known for their products in multiple sclerosis, spinal muscular atrophy, and most recently Alzheimer’s disease. The new CEO, Christopher Viehbacher, is working to improve the company’s pipeline, most recently with their acquisition of Human Immunology Biosciences Inc. in May. Chris has a strong track record of successful M&A and we expect him to continue that tradition. More importantly, we think the market is currently giving the company no credit for success in their Alzheimer’s indication. While the uptake in Leqembi, their Alzheimer’s product, has been slow, we still see strong long-term potential for a patient population that is dramatically underserved. We find the risk/reward extremely attractive.”
