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Biogen Inc BIIB

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Maintaining Our $391 FVE for Biogen; Aduhelm a Likely Blockbuster Despite Controversy

Karen Andersen, CFA Sector Strategist

Analyst Note

| Karen Andersen, CFA |

Biogen saw a 25% decline in revenue in the second quarter as multiple sclerosis revenue fell 24% with the launch of generic versions of Tecfidera in the United States. However, the key focus of the earnings call was recently approved Alzheimer's disease drug Aduhelm and the controversy surrounding its approval. Given the significant uncertainties around reimbursement and competition, we continue to assume a small share of patients receive Aduhelm even in the out years of our model, which still results in $7 billion in global Aduhelm sales by 2030. We think Biogen's core MS business and expansion into depression, stroke, and neurogenerative diseases support a wide moat, and we're maintaining our $391 fair value estimate.

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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 Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Slow Growth
Employees 9,100

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