| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 80.20 | -65 |
| Graham Formula | 31.60 | -86 |
Biogen Inc. (BIIB.SW) is a leading biotechnology company specializing in the discovery, development, and commercialization of therapies for neurological and neurodegenerative diseases. Headquartered in Cambridge, Massachusetts, and listed on the Swiss Exchange (SIX), Biogen has established itself as a pioneer in multiple sclerosis (MS) treatments, with blockbuster drugs like TECFIDERA, AVONEX, and TYSABRI. The company also addresses spinal muscular atrophy (SPINRAZA), Alzheimer's disease (ADUHELM, in collaboration with Eisai), and biosimilars (BENEPALI, IMRALDI). Biogen's robust pipeline includes investigational therapies for Parkinson's disease, neuropsychiatry, and immunology, underscoring its commitment to addressing unmet medical needs in neurology. With strategic partnerships with firms like Samsung Bioepis and Sage Therapeutics, Biogen leverages collaborative innovation to maintain its competitive edge in the dynamic biopharmaceutical sector. The company's focus on high-impact neurological conditions positions it as a critical player in the global healthcare market.
Biogen presents a mixed investment profile. The company's strong legacy in MS therapies and expanding biosimilars portfolio provides stable revenue streams, while its Alzheimer's franchise (ADUHELM and lecanemab) offers high-risk, high-reward potential. However, ADUHELM's controversial FDA approval and limited Medicare coverage pose significant commercialization risks. Biogen's net income of $1.16B (2023) and operating cash flow of $1.55B reflect solid profitability, but its $7.34B debt load and lack of dividends may deter conservative investors. The stock's negative beta (-0.02) suggests low correlation with broader markets, potentially appealing for portfolio diversification. Investors should weigh Biogen's pipeline potential against regulatory uncertainties and competitive pressures in neurology.
Biogen's competitive advantage lies in its deep expertise in neurology, particularly in MS and spinal muscular atrophy, where it holds market-leading positions with TYSABRI and SPINRAZA. Its biosimilars business, developed through the Samsung Bioepis partnership, provides diversification against patent cliffs. However, the company faces intensifying competition in Alzheimer's disease, where Eli Lilly's donanemab and Roche's gantenerumab challenge its first-mover status with ADUHELM. Biogen's R&D focus on high-need neurological conditions (e.g., Parkinson's, ALS) differentiates it from broader biopharma peers, but its reliance on a few key products (MS franchise contributed ~60% of 2023 revenue) creates concentration risk. The company's collaboration strategy—notably with Eisai on Alzheimer's and Sage on depression—enhances its innovation capacity while sharing development costs. Manufacturing capabilities for complex biologics provide an additional moat. However, pricing pressures in MS (from generics and newer oral therapies) and biosimilars (facing entrenched originators like Humira) require continuous pipeline replenishment to sustain growth.