Biogen Stock Stays Flat Despite FDA Panel Endorsement of Leqembi
June 19, 2023
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Biogen Inc ($NASDAQ:BIIB). is a publicly traded biotechnology company based in Cambridge, Massachusetts that specializes in the discovery, development, and delivery of therapies to treat neurological and neurodegenerative diseases, including Alzheimer’s disease, multiple sclerosis, and Parkinson’s disease. Recently, the FDA’s Peripheral and Central Nervous System Drugs Advisory Committee (PCNS-DAC) voted to endorse the safety and efficacy of Biogen’s migraine treatment drug, Leqembi. Despite this endorsement from the PCNS-DAC, Biogen’s stock remained relatively flat.
This could be because the market had already anticipated the positive outcome, or due to other factors such as the delay in the FDA approval process. It is likely that investors will wait for further news from Biogen and the FDA before making any decisions about the stock.
Price History
On Monday, despite the FDA advisory panel’s endorsement of Biogen Inc.’s experimental drug Leqembi, the company’s stock price stayed flat. Biogen opened at $319.8 and closed at $313.4, only slightly up by 1.5% from its last closing price of $308.9. The panel recommendation will now be sent to the FDA, which will decide whether or not to approve the drug. However, investors remain uncertain as to whether the drug will be approved, resulting in no significant change in Biogen’s stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Biogen Inc. More…
| Total Revenues | Net Income | Net Margin |
| 10.1k | 3.13k | 21.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Biogen Inc. More…
| Operations | Investing | Financing |
| 1.38k | 1.58k | -1.75k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Biogen Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.6k | 10.81k | 93.04 |
Key Ratios Snapshot
Some of the financial key ratios for Biogen Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -11.2% | -27.5% | 39.0% |
| FCF Margin | ROE | ROA |
| 11.3% | 18.4% | 10.0% |
Analysis
At GoodWhale, we’ve performed an analysis of BIOGEN INC‘s wellbeing. Our Star Chart shows that BIOGEN INC is strong in profitability, but medium in asset and weak in dividend and growth. In terms of health score, BIOGEN INC scored a solid 10/10, indicating the company is capable of paying off its debt and financing future operations. We have classified BIOGEN INC as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Thus, BIOGEN INC is likely to be an ideal investment for investors seeking to acquire a strong portfolio of assets. Its strength in profitability indicates the company is also capable of generating returns on its investments. More…
Peers
In the biotechnology industry, Biogen Inc is up against some stiff competition from the likes of Eli Lilly and Co, Gilead Sciences Inc, and Intra-Cellular Therapies Inc. All three companies are leaders in the development of innovative treatments and therapies for a variety of diseases and disorders. Biogen Inc has developed a reputation for being a cutting-edge company that is constantly striving to bring new and improved treatments to market. This commitment to innovation has allowed Biogen Inc to maintain a strong position in the industry, despite the challenges posed by its competitors.
– Eli Lilly and Co ($NYSE:LLY)
Eli Lilly and Co is a global pharmaceutical company that develops and markets prescription medicines and vaccines for various medical conditions. The company’s market cap as of 2022 is 316.18B. Its return on equity (ROE) is 45.88%.
Eli Lilly and Co was founded in 1876 and is headquartered in Indianapolis, Indiana, United States. The company operates in more than 140 countries worldwide. Some of its products include treatments for diabetes, cancer, Alzheimer’s disease, and psychiatric disorders.
– Gilead Sciences Inc ($NASDAQ:GILD)
Gilead Sciences Inc is a research-based biopharmaceutical company that discovers, develops and commercialises innovative therapeutics. The company’s mission is to advance the care of patients suffering from life-threatening diseases. Gilead Sciences Inc has a market cap of 83.2B as of 2022 and a Return on Equity of 24.03%. The company’s products include antiviral therapies, treatments for cancer and inflammatory diseases.
– Intra-Cellular Therapies Inc ($NASDAQ:ITCI)
Intra-Cellular Therapies Inc is a clinical stage biopharmaceutical company that focuses on the development of drugs for the treatment of neuropsychiatric disorders. The company’s market cap as of 2022 was 4.47B, and its ROE was -42.76%. The company’s products are in various stages of development, and include candidates for the treatment of schizophrenia, bipolar disorder, and major depressive disorder.
Summary
Biogen Inc. is an American biotechnology company that focuses on developing treatments for neurological and autoimmune diseases. In recent months, the company’s stock has not seen a significant boost following the favorable opinion of the US Food and Drug Administration (FDA) Advisory Committee on the approval of the new drug, Leqembi. Despite this, analysts still maintain a positive outlook on the company’s short-term prospects, citing their solid clinical pipeline, their impressive sales growth in the last quarter, and their commitment to innovation.
Additionally, their dividend offering and strong cash flow position present investors with an attractive entry-point. While the company’s long-term future remains unclear, investors should remain optimistic given Biogen’s strong financial standing and potential for growth.
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