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Biogen Inc BIIB

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

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PREMIUM

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PREMIUM

Raising Our Biogen FVE to $401 Following Aduhelm FDA Approval

Karen Andersen, CFA Sector Strategist

Analyst Note

| Karen Andersen, CFA |

On June 7, the U.S. Food and Drug Administration approved Biogen's Aduhelm (aducanumab) as a treatment for Alzheimer's disease under its accelerated approval pathway, determining that the benefits of treatment outweighed the risks. We've raised our fair value estimate for Biogen to $401 from $350 following this news, as we had incorporated only a 40% probability of approval into our model, and the drug's list price ($56,000 annually) is significantly higher than we had assumed. We now model more than $7 billion in Aduhelm global sales by 2030. Overall, the incorporation of Aduhelm into Biogen's neurology-focused portfolio provides additional support for our wide moat rating.

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Company Profile

Business Description

Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel MS drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is co-promoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with SOBI) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021.

Contact
225 Binney Street
Cambridge, MA, 02142
T +1 617 679-2000
Sector Healthcare
Industry Drug Manufacturers - General
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 9,100

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