BIIB - Embedded Expectations Analysis - 2021 11 17
Biogen Inc. (BIIB) currently trades below corporate but above historical averages relative to Uniform earnings, with a 16.7x Uniform P/E (Fwd. V/E').At these levels, markets are pricing in expectations for Uniform ROA to compress to all-time lows of 12%, accompanied by 5% Uniform asset growth.
Similarly, analysts expect Uniform ROA to decline to 17% in 2022, accompanied by 32% Uniform asset shrinkage.
If sustained going forward, these levels would imply a stock price closer to $40, representing significant equity downside for the firm.
However, the firm's most recent earnings call suggests management may have concerns about ADUHELM, pipeline progress, revenue, and guidance.
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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