BIIB - Embedded Expectations Analysis - 2018 03 20
Biogen Inc. (BIIB:USA) currently trades below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 15.5x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about growth and costs
Specifically, management may be downplaying concerns about TECFIDERA, and may be concerned about increasing discount allowance for SPINRAZA going forward. Furthermore, they may be concerned about lumpy growth in contract manufacturing during 2018, and may also have concerns about increasing SG&A costs relative to revenue. Moreover, they may lack confidence in their ability to implement a robust external pipeline strategy, and may be exaggerating their commitment to the MS and SMA communities
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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