7 Most Undervalued Biotech Stocks To Invest In

5. Biogen Inc. (NASDAQ:BIIB)

Forward P/E: 9.07

Number of Hedge Fund Holders: 52

Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company that discovers, develops, and delivers advanced therapies for serious diseases across the globe. Its medicine portfolio treats multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS). The company has an elaborate marketed product portfolio for MS, including TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA. It also markets SPINRAZA to treat SMA, SKYCLARYS for the treatment of Friedreich’s Ataxia, and other drugs.

The company is focusing on the four products it launched last year for Alzheimer’s, Friedreich’s ataxia, depression, and ALS. The products hold significant potential as the first disease-modifying agents in each of these diseases. Biogen Inc. (NASDAQ:BIIB) has also reprioritized its pipeline, focusing on a number of key projects to boost its business success. It has various key developments set for 2026, marking a multi-billion dollar portfolio.

Biogen Inc. (NASDAQ:BIIB) is also making continued progress in its commercial portfolio. Fiscal Q4 2024 global in-market sales for LEQEMBI, which treats Alzheimer’s, reached approximately $87 million, representing positive continued sequential growth. Global SKYCLARYS revenue of around $102 million in the quarter also showed continued patient growth, as the drug has nearly doubled the number of patients on therapy globally compared to 2023. Biogen Inc. (NASDAQ:BIIB) also reported a 3% year-over-year growth in its total revenue in fiscal Q4 2024, reaching $2.5 billion. Its non-GAAP diluted EPS was $3.44, reflecting a 17% year-over-year growth. The company takes the fifth spot on our list of the 7 most undervalued biotech stocks to invest in.

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.”