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With a market cap of $21 billion, Cambridge, Massachusetts-based Biogen Inc. (BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases in the United States and globally.
Companies worth $10 billion or more are generally described as "large-cap stocks," BIIB fits this bill perfectly. As a leading biotech company, BIIB benefits from an impressive pipeline of drugs including TECFIDERA, VUMERITY, AVONEX, SPINRAZA, SKYCLARYS, and QALSODY.
Despite its strengths, the stock has fallen 39.9% from its 52-week high of $238, recorded on Jul. 12 last year. BIIB stock declined 2.5% over the past three months, outperforming the SPDR S&P Biotech ETF’s (XBI) 4.2% fall during the same time frame.
However, BIIB’s performance remains concerning over the long term. It has declined 27.6% over the past six months and 34.8% over the past 52 weeks. In contrast, XBI has declined 14.5% over the past six months and 7.3% over the past 52 weeks, outperforming the stock.
BIIB has been trading below its 200-day and 50-day moving average since mid-July, indicating a prolonged downtrend.
Despite the grim price action over the past year, BIIB’s stock surged 3.8% in the next trading session following its Q4 earnings release on Feb. 12 The company reported a 3% year-over-year increase in its total revenue, which amounted to $2.5 billion. The growth was attributed to robust sales of its LEQEMBI and SKYCLARYS pipeline globally. Additionally, its EPS amounted to $3.44, rising 17% year over year and surpassing the Wall Street estimates marginally.
Looking ahead, Biogen projects a mid-single-digit percentage revenue decline for 2025, with adjusted EPS expected to range between $15.25 and $16.25, below the $16.47 reported in 2024.
In the competitive biotech sphere, Gilead Sciences, Inc. (GILD) is in the lead, with its shares surging 31.4% over the past six months and 50.5% over the past 52 weeks.
Analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 33 analysts in coverage. Its mean price target of $197.55 represents an upside of 38.1% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
