Entering text into the input field will update the search result below

Bioverativ Target Raised On 10-K Data

William Meyers profile picture
William Meyers


  • Bioverativ is the hemophilia and blood disease therapy spin-off from Biogen.
  • Pre-spinoff, I estimated its value at $45 per share.
  • Figures from the 10-K for 2016 indicate a reasonable estimate is $70, with potential upside.

Bioverativ (NASDAQ:BIVV) was spun off from Biogen (BIIB) on February 1, 2017. Bioverativ started with Biogen's hemophilia therapies and $325 million in cash. The therapies are Alprolix for hemophilia B and Eloctate for hemophilia A.

I estimated the stock value at $45 per share in my pre-spinoff article, "Bioverativ Should Have a Strong Launch." Since the launch BIVV has traded between a low of $41.19 and a high of $54.20. It closed on March 26 at $50.30.

On Friday, March 24, Bioverativ filed a 10-K annual report with the SEC covering 2016, when it was still a division of Biogen. While there are some caveats, data in the report has caused me to substantially upgrade my fair estimated stock price for Bioverativ.

10-K Caveat

It is important to note that the earnings numbers in this 10-K depend on expense allocations made between Biogen and Bioverativ. These are matters of human judgment. Even if done entirely fairly, Bioverativ could have higher expenses in 2017 from a variety of causes, including having corporate overhead expenses that had been shared with Biogen in 2016. In other words, the opposite of the synergies seen or hoped for when companies merge. This is mentioned in the 10-K.

The other usual caveats about mid-cap biotechnology firms also apply.

A caveat about taxes is important enough to have its own section below.

2016 results

In the 10-K Bioverativ reported 2016 revenue of $887.4 million. In my prior article, I estimated 2016 revenue at $830 million. I had not included collaboration revenue of $41 million in 2016, and I was also a bit conservative in my Q4 revenue estimate.

2016 Net income was $439.6 million, and EPS was $4.07.

Guidance for 2017 revenue growth is 17% to 19%.

I had estimated 2017 revenue at between $971 and 988 million, net

This article was written by

William Meyers profile picture
I provided stock and bond research and analysis to a small cap specialist investor, Lloyd Miller, from 2002 until his death in January 2018. For my own account I invest mainly in technology and biotechnology stocks. My technology and investment web site is openicon.com, where readers can view the notes I take to make decisions and to write articles for Seeking Alpha.

Analyst’s Disclosure: I am/we are long BIVV, BIIB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I received my BIVV stock as a dividend from my BIIB stock

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (4)

Hello, As we all know BIVV is a spin off BIIB. If we sell the stock today will it be considered short term capital gains or long term. My trading account shows the purchase date of 2015 when I bought BIIB.

Thanks in Advance!
Your lot date for BIVV is the same as your purchase date of BIIB. Hope this helps.
Does anyone know what kind of impact health care reform would have on bivv? My understanding is bivv's particular drugs in blood diseases have a significant high cost and rather narrow customer market. So would healthcare reform hurt this company's profit?
I read the Q4 report also. Their revenue was 256.2m vs 255.3m estimated. The earning was huge at 228.9m. Do you know how much they earned per share? Thanks.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

More on BIVV

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.