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2.  Biogen Inc. (NASDAQ:BIIB)

Market Cap: $23.33 billion

FWD PE Ratio: 9.6

Average Price Target Upside: 58.33%

Biogen Inc. (NASDAQ:BIIB) is an international biopharmaceutical company specializing in therapies for neurological disorders, rare diseases, and specialized immunology. Its treatments address conditions such as multiple sclerosis, spinal muscular atrophy, Alzheimer’s, and amyotrophic lateral sclerosis. It operates in multiple countries, including the U.S., China, and Germany.

Biogen (NASDAQ:BIIB) struggled in 2024, declining over 40% year-to-date, and has also taken place among our oversold large-cap stocks list due to setbacks with its Alzheimer’s treatment, Leqembi, and declining sales of key multiple sclerosis drugs, Tecfidera and Tysabri. Additional pressures include reduced contract manufacturing and royalty income.

Despite that, analysts maintain a positive sentiment around the company. On November 15, TipRanks reported that Jefferies analyst Michael Yee maintained a Buy rating on the company with a price target of $250. The recommendation stems from positive developments in Europe for Biogen’s (NASDAQ:BIIB) Alzheimer’s drug, Leqembi. The EMA reversed its earlier decision and now recommends Leqembi’s approval for specific patient groups based on genetic markers. This decision is seen as a significant opportunity, as Europe could account for about 30% of the drug’s global sales.

Yee noted challenges, including delays in EU pricing and reimbursement processes, logistical hurdles for patient adoption and diagnostic infrastructure, and the need for the company to improve its product pipeline. Despite these issues, the approval for Leqembi among patient groups showing notable cognitive improvement supports market growth potential.