Biogen Hits A Potential Home Run

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About: Biogen Inc. (BIIB), Includes: ABBV, AMGN, RHHBY
by: Valuentum
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Summary

Biogen's current product lineup is beginning to show its age, and a fresh injection of novel products may be necessary to jumpstart top-line revenue growth.

Spinraza is a notable step in the right direction, but we fear new gene-editing therapies may disrupt Spinraza, thus depriving Biogen an avenue of growth.

Biogen is committed to bringing forth a new treatment for Alzheimer's, but the goal of a viable treatment may be elusive. We're optimistic, however.

The company reported positive trial results at the 18-month mark on a key Alzheimer's product, but the same compound missed its primary endpoint at the 12-month mark, raising concerns on how valid the results truly are.

Thanks in large part to the stellar share-price jump driven by the perceived positive data read in Alzheimer's, Biogen has now cut through our $313 fair value estimate to the upside.

By Alexander J. Poulos

We closely follow the progress of the clinical pipeline of companies in the pharma/biotech sector. Unlike other less product-driven industries, the pharma/biotech sector can experience wide swings in operating performance as