Biogen: A Mix Of Growth And Stability

Summary

• Biogen recently announced that it will begin FDA approval on its Alzheimer's disease drug aducanumab in the third quarter 2020.
• The company experienced a setback in working with the FDA on the data submission due to COVID-19.
• Biogen also recently lost a patent dispute with rival company Mylan, meaning that generic forms of its top-selling Multiple Sclerosis medication Tecfidera may be forthcoming.
• This article focuses on the fundamentals and what the real value is versus the current share price.
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Pharmaceutical company Biogen, Inc. (NASDAQ:BIIB) faces some hurdles as the second half of 2020 begins. The company recently lost a patent dispute with competitor Mylan, which means that generic forms of its top-selling multiple sclerosis drug Tecfidera may be coming into the market soon. Biogen has previously been able to defend its patents several times and will likely appeal the ruling. The company derives 40% of its income from Tecfidera sales.

Biogen also experienced setback with its new Alzheimer's disease drug, aducanumab. In March of last year, the company suspended its phase-3 trials of the drug because the trials were not predicted to reach their primary endpoint. The stance was reversed in October and Biogen planned to file for FDA approval early in 2020. While it had been working with the FDA on data submission, complications due to the spread of COVID-19 hindered the process. Biogen now seeks to file in the third quarter of 2020. While Alzheimer's doctors do not feel that the drug should be approved, they have stated they would prescribe aducanumab if it passes and gains approval.

While current news stories, good or bad can sway our opinion about investing in a company, it's good to analyze the fundamentals of the company and to see where it's been in the past and in which direction it's heading.

This article will focus on the long-term fundamentals of the company, which tend to give us a better picture of the company as a viable investment. I also analyze the value of the company versus the price and help you to determine if BIIB is currently trading at a bargain price. I provide various situations that help estimate the company's future returns. In closing, I will tell you my personal opinion about whether I'm interested in taking a position in this company and why.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in BIIB over the next 72 hours. 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.