Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently

5. Biogen Inc. (NASDAQ:BIIB)

Number of Hedge Fund Holders: 49

Cramer highlighted Biogen Inc. (NASDAQ:BIIB) as one of the worst-performing stocks in 2024 and mentioned that it has flown “too close to the sun for too long”.

“Third, Biogen’s been running on fumes while it works on its Alzheimer’s drug, but the fumes, basically a very good MS drug, in a crowded field, aren’t enough. Not with the unmet projections for its Alzheimer’s formulation or competition coming from Eli Lilly. Hence the stock’s 41% decline. Biogen’s traveled too close to the sun for too long. It feels real burned out here.”

Biogen (NASDAQ:BIIB) develops and delivers therapies for neurological and neurodegenerative diseases, offering treatments for various conditions. The company also develops various products for disorders like Parkinson’s disease, dementia, and neuropsychiatric conditions, with several in different stages of development. While the company exceeded earnings expectations in the third quarter, it faced challenges within its multiple sclerosis (MS) segment. The revenue from the MS product line declined by 9%, primarily due to ongoing competition from generic drugs and issues related to patents.

To address its financial pressures and reposition the company for growth, the company has implemented cost-saving measures, including workforce reductions and discontinuation of less promising drug candidates. The company has raised its annual adjusted profit per share forecast to a range of $16.10 to $16.60, slightly above its previous projection of $15.75 to $16.25 per share.

In July, regulators rejected Biogen (NASDAQ:BIIB) and Eisai’s Leqembi due to concerns over brain swelling and its limited impact on cognitive decline. However, in November 2024, the European Union’s drug regulator reversed its decision, recommending approval for certain early Alzheimer’s patients as per Reuters. Jefferies analyst Michael Yee noted that the EU could represent up to 30% of worldwide peak sales for Eisai and Biogen, though challenges remain due to the drug’s need for additional diagnostic tests and regular brain scans. Yee also mentioned that the recommendation could help support the drug’s pricing and reimbursement, which is determined by individual EU member states.