BIIB - Embedded Expectations Analysis - 2019 04 09
Biogen Inc. (BIIB:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 7.8x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about their IMRALDI launch in Europe, TYSABRI and IMRALDI performance, and R&D and SG&A expenses.Specifically, they may be concerned about the launch of IMRALDI in Europe, preclinical studies for aducanumab, and their dosing capability infrastructure and coverage for SPINRAZA in the US. Moreover, management may be exaggerating the global reach of SPINRAZA, positive clinical study results and potential applications of BIIB104, IMRALDI sales performance, and improvements in TYSABRI's scripts. Also, they may be concerned about increased R&D investments and expenses, channel inventory build, and current cash and debt levels. In addition, they may be concerned about SG&A expenses, Medicaid pricing pressures, and the market shift from injectables to oral and high-efficacy therapies. Furthermore, they may lack confidence in their ability to sustain yearly performance improvements, maintain gross margin, and leverage the interconnectivity of their neuroscience pipeline.
Biogen is a biopharmaceutical company focused on discovering, developing and delivering therapies for people living with neurological and neurodegenerative diseases as well as related therapeutic adjacencies. The company's main growth areas include multiple sclerosis (MS) and neuroimmunology; Alzheimer's disease and dementia; neuromuscular disorders, including spinal muscular atrophy (SMA) and amyotrophic lateral sclerosis; movement disorders, including Parkinson's disease; and ophthalmology. The company's marketed products include TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, VUMERITY and FAMPYRA for the treatment of MS, SPINRAZA for the treatment of SMA and FUMADERM for the treatment of severe plaque psoriasis.
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