Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

20. Biogen Inc. (NASDAQ:BIIB)

Growth Investment Ratio: 107%

Number of Hedge Fund Holders: 46

Biogen Inc. (NASDAQ:BIIB) is a biotechnology company that makes and sells treatments for a variety of diseases such as muscular atrophy, psoriasis, Alzheimer’s, and leukemia. Since it’s a profitable company, the firm is less risky than several other biotechnology stocks that are loss-making entities. As of H1 2024, 62% of the firm’s revenue came from its portfolio of drugs targeting multiple sclerosis. Within this portfolio, TYSABRI and TECFIDERA accounted for substantial portions of Biogen Inc. (NASDAQ:BIIB)’s sales. As a result, the firm’s hypothesis depends on its ability to sustain sales of these drugs until it can launch new products. On this front, Biogen Inc. (NASDAQ:BIIB)’s SKYCLARYS drug for nervous system damage raked in $170 million in revenue in H1 for a nice addition to its portfolio. However, TECFIDERA and TYSABRI revenue fell, and if the drops continue then the firm could face trouble down the road.

As for the treatments that it is developing, here’s what Biogen Inc. (NASDAQ:BIIB)’s management shared during the Q3 2024 earnings call:

“So BIIB080, one of the things that excites me is that although this is an intrathecal as Priya will say, we recruited early on this one and were finished recruiting. And to me, as someone who’s had commercial experience over 35 years, when I see a clinical trial recruiting early, particularly in a competitive space where there are existing therapies, that augurs well for the product downstream. Dapirolizumab, we saw positive Phase 3 results, and I’d like to congratulate Priya because Priya had already thought about this and it’s worked with UCB and there’s actually a Phase 3 protocol ready to go. And so we’ll be starting Phase 3 very soon. Lupus is an area of huge unmet need, and we have not only dapi, but we have litifilimab in two indications.

And behind that, we have also felzartamab actually in lupus nephritis. In felza, we had some very encouraging data at San Diego in IgAN, and we’ve had breakthrough status on AMR. This is a game changer for us in terms of our pipeline because, again, here, we’ve got Phase 2 data that look very compelling. We all know that there are no guarantees in pipeline development. But at least we have, I think, reason to believe that these products could come to market and make a big difference. And as we start to look at the peak revenue for each of these products, the cumulative of all of these, if they all actually made it to market and got approved, have peak sales cumulatively of about $14 billion. And when you consider that our pharma business today is about $7.5 billion, this late-stage pipeline could really transform Biogen over the longer term.”