10 Worst Performing Healthcare Stocks in 2024

6. Biogen Inc. (NASDAQ:BIIB)

Total YTD Return: -26.75% 

Biogen Inc. (NASDAQ:BIIB) is a biotechnology company that develops therapies for neurological and neurodegenerative diseases, focusing on conditions like multiple sclerosis, Alzheimer’s, Parkinson’s, and spinal muscular atrophy. Its main products are prescription medications targeting these disorders.

Biogen Inc. (NASDAQ:BIIB)’s Alzheimer’s drug, Leqembi, has seen a slower-than-expected launch, struggling against competition from treatments like Eli Lilly’s Kisunla. Analysts question its market penetration and effectiveness, raising concerns about future revenues. Biogen’s pipeline is viewed as uninspiring, with limited innovative therapies, though promising developments like felzartamab for kidney transplant patients offer some hope.

In Q3 2024, Biogen Inc. (NASDAQ:BIIB) reported revenue of $2.5 billion, reflecting a 3% decrease compared to the same quarter in 2023. This decline was attributed to underperformance in its core pharmaceutical revenue streams, which also fell by 3%. Despite a 66% increase in global revenue from its Alzheimer’s drug, Leqembi, compared to Q2 2024, this growth was insufficient to offset losses from other products and overall market expectations.

Biogen Inc. (NASDAQ:BIIB) non-GAAP diluted EPS for Q3 was $4.08, down 6% year-over-year. While non-GAAP operating income increased by 4%, this was largely due to cost-cutting measures rather than significant revenue growth. The company’s focus on R&D prioritization and efficiency improvements has not translated into sustainable profitability or revenue growth, raising concerns among investors about the long-term viability of its financial strategies

Analysts have recently downgraded their outlook on Biogen, projecting limited catalysts for growth over the next year and suggesting that the stock may remain flat until at least 2026. Although some analysts maintain a “Moderate Buy” rating, the overall sentiment reflects caution due to ongoing challenges within the company and its competitive landscape.

As tracked by the Insider Monkey database, 49 hedge fund holders held shares in the company in Q3 2024, with RA Capital Management being the largest stakeholder with shares worth $229.5 million.