One-glance verdict
Undervalued
$225.46 our estimate vs market $216.01
Wall Street consensus: $237.19 (5.2% higher than our fair-value estimate)
4% below our estimate, below the bear case
Fundamentals snapshot
Biogen Inc.
BIIB · NMS · Healthcare · Drug Manufacturers - General
Current price
$216.01
52-week range
$135.39 - $225.80
Market cap
$31.92B
Balance sheet
Watch
9.23x Adequate
Net debt $7.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.5% last year.
- Reward Returns 4.6% on equity, ahead of 16% of its peers.
- Risk Stock trades 93.5% above its 5-year average P/E.
- Risk Net debt grew 60.4% over 3 years.
What this company does
Biogen Inc.
Biogen is a biotechnology company that creates and sells medicines for complex diseases of the nervous system, like multiple sclerosis (MS) and Alzheimer's. For a long time, its main income has come from its group of MS drugs, but it is banking on newer treatments, particularly for Alzheimer's, to drive future growth. Therefore, the company's success largely depends on whether these new, high-profile drugs are widely adopted by patients and doctors.
How the company got here
Founded in 1978, Biogen was one of the world's first biotechnology companies, starting with a focus on developing medicines from biological sources. A major turning point was the 1996 approval of Avonex, a breakthrough treatment for multiple sclerosis (MS), which established the company as a leader in neurology. In 2003, Biogen merged with IDEC Pharmaceuticals, expanding its scale and product lineup. For many years, its business was heavily reliant on its successful MS drugs, but as these products aged, the company faced the challenge of finding new sources of growth.
What it actually does
Biogen discovers, develops, and sells prescription medicines for complex and serious diseases, with a special focus on conditions that affect the brain and nervous system. You won't find their products on pharmacy shelves for everyday ailments; instead, they create specialized treatments for conditions like multiple sclerosis, spinal muscular atrophy (a rare muscle-wasting disease), and Alzheimer's disease. Doctors at hospitals and specialized clinics are the primary prescribers of their therapies. The company makes money by selling these branded drugs to healthcare providers and through partnerships with other drugmakers.
Multiple Sclerosis (MS)
This is Biogen's oldest and largest business, forming the foundation of the company for decades. It sells a portfolio of medicines, including TECFIDERA, VUMERITY, and TYSABRI, that help manage the symptoms of multiple sclerosis, a chronic disease where the immune system attacks the nervous system. While this segment still generates a very large portion of the company's revenue (the money it brings in from sales), it is facing increased competition from both rival brands and generic drugs (cheaper copies of brand-name drugs). As a result, Biogen is focused on managing the decline of these older products while investing in newer areas.
Spinal Muscular Atrophy (SMA) & Rare Diseases
This part of the business represents a key area of future growth and focuses on diseases that affect a smaller number of patients but have a high need for effective treatments. Its main product here is SPINRAZA, the first approved therapy for spinal muscular atrophy, a rare genetic disease that causes muscle weakness and decay. The company has expanded this segment by acquiring other companies, adding treatments like SKYCLARYS for a rare neurological disorder called Friedreich's Ataxia. This is a growing slice of Biogen's business, built on highly specialized, innovative medicines.
Alzheimer's Disease
This is one of Biogen's most visible and high-risk, high-reward business lines. In partnership with another company, Eisai, Biogen co-developed and sells LEQEMBI, a treatment for early Alzheimer's disease. Unlike medicines that just manage symptoms, this drug is designed to address one of the underlying causes of the disease by targeting a protein in the brain called amyloid. The launch of this drug has been complex, requiring not just marketing but also helping build the system for diagnosis and treatment. This segment represents a major bet on a very challenging disease area.
Biosimilars
This segment is like a generic drug business but for more complex medicines called biologics, which are made from living cells. A biosimilar is a product that is demonstrated to be highly similar in effectiveness and safety to an original, approved biologic drug, but it is typically sold at a lower cost. Biogen produces and sells biosimilars of other companies' successful drugs, such as treatments for autoimmune conditions like rheumatoid arthritis. This provides a steady, though smaller, source of revenue for the company.
What management is betting on now
Management is focused on a major transition, shifting the company's reliance away from its older MS drugs toward newer growth products. A key priority is the successful commercialization of its Alzheimer's drug, LEQEMBI, and expanding its portfolio of treatments for rare diseases. The company is also heavily investing in its pipeline (the set of drugs currently in development and testing) and is actively looking for new medicines to acquire or partner on from outside the company. This strategy, which they call building the "new Biogen," is about creating a more diversified and durable business for the future.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$592.30M
FY2024 Q3
$900.60M
FY2024 Q4
$721.60M
FY2025 Q1
$222.20M
FY2025 Q2
$134.30M
FY2025 Q3
$1.23B
FY2025 Q4
$468.00M
FY2026 Q1
$594.30M
Revenue
$2.48B
Net income
$319.50M
Diluted EPS
2.15
Operating cash flow
$645.50M
Free cash flow
$594.30M
Fetching…
Sources
Revenue
$2.28B
Net income
$-48.90M
Diluted EPS
-0.35
Operating cash flow
$511.90M
Free cash flow
$468.00M
Fetching…
Sources
Revenue
$2.53B
Net income
$466.50M
Diluted EPS
3.17
Operating cash flow
$1.27B
Free cash flow
$1.23B
Fetching…
Sources
Revenue
$2.65B
Net income
$634.80M
Diluted EPS
4.33
Operating cash flow
$160.90M
Free cash flow
$134.30M
Fetching…
Sources
Revenue
$2.43B
Net income
$240.50M
Diluted EPS
1.64
Operating cash flow
$259.30M
Free cash flow
$222.20M
Fetching…
Sources
Revenue
$2.45B
Net income
$266.70M
Diluted EPS
1.82
Operating cash flow
$760.90M
Free cash flow
$721.60M
Fetching…
Sources
Revenue
$2.47B
Net income
$388.50M
Diluted EPS
2.66
Operating cash flow
$935.60M
Free cash flow
$900.60M
Fetching…
Sources
Revenue
$2.46B
Net income
$583.60M
Diluted EPS
4.00
Operating cash flow
$625.80M
Free cash flow
$592.30M
Fetching…
Sources
Is it cheap or expensive?
Fair value $225.46 vs current price $216.01
Wall Street consensus is the average analyst price target: $237.19 (5.2% higher than our fair-value estimate).
Our most-likely fair value is $225.46 a share — about 4.4% above today's price of $216.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $7.1B. Interest coverage 9.2x.
Net debt
$7.07B
Interest coverage
9.23x
Biogen Inc.'s profit covers its interest bill about 9.2 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
BIIB
BASELINE
Biogen Inc.
Total debt $8.36B Interest coverage 9.23x This is the baseline the peer rows are being compared against.
Total debt $57.30B Interest coverage 3.30x -64% vs BIIB Carries about 2.8x less debt cushion than BIIB.
Total debt $26.25B Interest coverage 11.43x +24% vs BIIB Carries about 1.2x more debt cushion than BIIB.
Total debt $1.98B Interest coverage 342.44x +3,610% vs BIIB Carries about 37.1x more debt cushion than BIIB.
Total debt $2.71B Interest coverage 84.52x +816% vs BIIB Carries about 9.2x more debt cushion than BIIB.
Total debt $2.99B Interest coverage 1.99x -78% vs BIIB Carries about 4.6x less debt cushion than BIIB.
What you should know
The case for and against BIIB
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.5% last year.
-
Returns 4.6% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 93.5% above its 5-year average P/E.
-
Net debt grew 60.4% over 3 years.
-
Operating margin compressed from 28.5% to 25.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.44x
Forward P/E
13.06x
P/B
1.69x
P/S
3.18x
EV/EBITDA
11.61x
PEG ratio
2.24x
Profitability
How much profit each dollar creates
Gross margin
78.3%
Operating margin
25.1%
Net margin
8.3%
ROE
4.6%
ROA
5.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.44x
Current ratio
1.86x
Quick ratio
0.94x
Total debt
$8.36B
Total cash
$1.28B
Growth
How the business has been compounding
Revenue TTM
$9.94B
Revenue 5Y CAGR
-2.6%
EPS TTM
5.62
EPS 5Y CAGR
-25.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.59B
Free CF TTM
$2.05B
FCF margin
20.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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