BIIB - Embedded Expectations Analysis - 2020 07 06
Biogen Inc. (BIIB:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) earnings, with a 7.9x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may have concerns about clinical trial delays, revenue growth, and aducanumab's approval processSpecifically, management may lack confidence in their ability to sustain Q1 financial results, revenue growth, and gross margin stability. Moreover, they may be exaggerating their ability to mitigate coronavirus risks, the growth opportunities in their biosimilar business, and the capabilities of Sangamo's capsid engineering platform. Furthermore, they may lack confidence in their ability to innovate clinical trial approaches, prevent delays in their clinical studies through a direct-to-patient delivery service, and satisfy aducanumab demand. In addition, they may have concerns about the progress of aducanumab's Biologics License Application, potential changes to aducanumab's fundamental data, and delays in their clinical trial readouts
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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