One-glance verdict
Undervalued
$416.42 our estimate vs market $253.62
Wall Street consensus: $263.60 (-36.7% lower than our fair-value estimate)
39% below our estimate, below the bear case
Fundamentals snapshot
Biogen Inc.
BIIB · NMS · Healthcare · Drug Manufacturers - General
Current price
$253.62
52-week range
$148.51 - $258.78
Market cap
$37.49B
Balance sheet
Watch
9.23x Adequate
Net debt $6.50B. 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 4.1% last year.
- Reward Returns 1.9% on equity, ahead of 16% of its peers.
- Risk Stock trades 452.9% above its 5-year average P/E.
- Risk Net debt grew 60.4% over 3 years.
What this company does
Biogen Inc.
Biogen creates medicines to treat serious neurological and autoimmune diseases like multiple sclerosis and Alzheimer's. Their main income comes from selling these specialized drugs, which is important because it shows how well their research and development efforts are translating into revenue.
How the company got here
Biogen was founded in 1978 by a group of scientists, including Nobel Prize winner Walter Gilbert, with the goal of turning biological research into marketable products. The company was an early pioneer in the biotechnology industry, but faced significant financial struggles in its initial years, even teetering on the edge of bankruptcy by 1984. A crucial turning point came with the merger with IDEC Pharmaceuticals in 2003, after which it was known as Biogen Idec before reverting to Biogen. This merger helped solidify its position in the market. More recently, Biogen has strategically acquired companies like Reata Pharmaceuticals in 2023 and Human Immunology Biosciences (HI-Bio) in 2024 to expand its pipeline and therapeutic areas. The company has also spun off its hemophilia business into a separate entity called Bioverativ. Biogen's history is marked by a focus on scientific innovation and strategic growth through both internal development and acquisitions.
What it actually does
Biogen is a biotechnology company that focuses on discovering, developing, and delivering therapies for complex and hard-to-treat diseases, particularly those affecting the brain and nervous system. They create medicines that aim to improve the lives of patients suffering from conditions like multiple sclerosis, Alzheimer's disease, spinal muscular atrophy, and amyotrophic lateral sclerosis. Biogen's work involves extensive research and development (R&D) to understand human biology and create innovative treatments. They also manufacture and market these medicines, making them available to patients in numerous countries worldwide.
Multiple Sclerosis
This is Biogen's largest business segment, focusing on treatments for multiple sclerosis (MS), a disease that affects the brain and spinal cord. Biogen offers several medications for MS, including TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, and TYSABRI. These therapies work in different ways to manage the disease, reduce relapses, and improve patients' quality of life. This segment has historically been the backbone of Biogen's revenue, though the company is working to diversify its offerings.
Rare Disease
This segment is dedicated to developing and delivering therapies for rare diseases, which are conditions that affect a small number of people. Key products in this area include SPINRAZA for spinal muscular atrophy (SMA), a genetic condition that affects nerve cells in the spinal cord, and SKYCLARYS for Friedreich's Ataxia, a rare inherited disorder that causes progressive damage to the nervous system. Biogen is actively expanding its portfolio in this area through research and acquisitions.
Biosimilars
Biogen also produces biosimilars, which are like generic versions of complex biologic medicines. These are drugs that are highly similar to already approved biologic medicines and have no clinically meaningful differences in terms of safety, purity, and potency. By offering biosimilars, Biogen aims to provide more affordable treatment options for certain conditions. This segment represents a smaller but growing part of Biogen's business.
Alzheimer's Disease and Other Neurological Conditions
Biogen is investing significantly in treatments for Alzheimer's disease, a progressive brain disorder that causes memory loss and cognitive decline. They have developed therapies like LEQEMBI, in collaboration with Eisai, to address this condition. The company also has a pipeline of other neurological therapies in development, reflecting its core focus on neuroscience. This area represents a key growth opportunity for Biogen as it seeks to address unmet medical needs in devastating neurological diseases.
What management is betting on now
Biogen's management is focused on transitioning the company from a heavy reliance on older multiple sclerosis drugs to a broader platform in neuroscience and specialized medicines. This strategy involves developing new treatments for challenging diseases like Alzheimer's and rare neurological conditions, as well as expanding their portfolio through strategic acquisitions and collaborations. They are taking calculated risks in research and development (R&D) to discover and bring to market innovative therapies that offer superior outcomes for patients, aiming for long-term growth and value creation.
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 Q4
$721.60M
FY2025 Q1
$222.20M
FY2025 Q2
$134.30M
FY2025 Q3
$1.23B
FY2025 Q4
$468.00M
FY2026 Q1
$594.30M
FY2026 Q2
$408.00M
FY2026 Q3
$600.40M
Revenue
$2.80B
Net income
$-20.60M
Diluted EPS
-0.14
Operating cash flow
$640.80M
Free cash flow
$600.40M
Fetching…
Sources
Revenue
$2.74B
Net income
$97.50M
Diluted EPS
0.66
Operating cash flow
$448.90M
Free cash flow
$408.00M
Fetching…
Sources
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
Is it cheap or expensive?
Fair value $416.42 vs current price $253.62
Wall Street consensus is the average analyst price target: $263.60 (-36.7% lower than our fair-value estimate).
Our most-likely fair value is $416.42 a share — about 64.2% above today's price of $253.62, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $6.5B. Interest coverage 9.2x.
Net debt
$6.50B
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 $7.80B 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 $26.45B 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 $3.00B 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 4.1% last year.
-
Returns 1.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 452.9% above its 5-year average P/E.
-
Net debt grew 60.4% over 3 years.
-
Operating margin compressed from 28.5% to 24.1% 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)
109.79x
Forward P/E
15.54x
P/B
1.98x
P/S
3.64x
EV/EBITDA
13.32x
PEG ratio
2.57x
Profitability
How much profit each dollar creates
Gross margin
75.8%
Operating margin
24.1%
Net margin
3.4%
ROE
1.9%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.41x
Current ratio
1.95x
Quick ratio
0.95x
Total debt
$7.80B
Total cash
$1.30B
Growth
How the business has been compounding
Revenue TTM
$10.30B
Revenue 5Y CAGR
-2.6%
EPS TTM
2.31
EPS 5Y CAGR
-25.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.25B
Free CF TTM
$2.05B
FCF margin
19.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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