Stock Analysis & Valuation Biogen Inc. (IDP.DE)

• Previous Close: €149.10
• Sector Valuation Confidence Level: High

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	132.50	-11
Intrinsic value (DCF)	58.28	-61
Graham-Dodd Method	109.40	-27
Graham Formula	64.10	-57

Strategic Investment Analysis

Company Overview

Biogen Inc. (IDP.DE) is a leading biotechnology company specializing in therapies for neurological and neurodegenerative diseases. Headquartered in Cambridge, Massachusetts, and listed on the Deutsche Börse (XETRA), Biogen focuses on innovative treatments for conditions such as multiple sclerosis (MS), Alzheimer's disease, spinal muscular atrophy, and other neurological disorders. The company's flagship products include TECFIDERA, AVONEX, and TYSABRI for MS, SPINRAZA for spinal muscular atrophy, and ADUHELM for Alzheimer's. Biogen also has a strong biosimilars portfolio, including BENEPALI and IMRALDI, enhancing its competitive edge in the biologics market. With strategic collaborations with firms like Eisai Co., Ltd., and Samsung Bioepis, Biogen continues to expand its pipeline, targeting unmet medical needs in neurology and immunology. The company's robust R&D focus and diversified product portfolio position it as a key player in the global biopharmaceutical industry.

Investment Summary

Biogen presents a mixed investment profile. On the positive side, the company has a strong portfolio of approved therapies, particularly in MS and spinal muscular atrophy, generating steady revenue streams. Its biosimilars segment adds diversification, and strategic partnerships bolster its pipeline. However, Biogen faces risks, including the controversial approval and slow adoption of ADUHELM for Alzheimer's, which has faced regulatory and reimbursement challenges. The company's high R&D costs and dependence on a few key products expose it to revenue volatility. Additionally, competition in biosimilars and neurology is intense. Investors should weigh Biogen's innovation potential against pipeline execution risks and market competition.

Competitive Analysis

Biogen holds a strong position in the neurology-focused biopharmaceutical market, particularly in MS and rare neurological diseases. Its competitive advantage lies in its deep expertise in neuroscience, a robust pipeline, and strategic collaborations. However, the company faces intense competition from larger pharmaceutical firms with broader portfolios and greater financial resources. In MS, competitors like Roche (with OCREVUS) and Novartis (with KESIMPTA) challenge Biogen's dominance. In Alzheimer's, Eli Lilly and Eisai are advancing competing therapies, potentially overshadowing ADUHELM. Biogen's biosimilars business competes with players like Amgen and Pfizer, which have extensive experience in biologics manufacturing and commercialization. While Biogen's focus on neurology provides specialization benefits, its narrower therapeutic focus compared to diversified giants like Pfizer or Roche limits its revenue resilience. The company must continue to innovate and execute efficiently to maintain its competitive edge.

Major Competitors

• Roche Holding AG (ROG.SW): Roche is a global leader in pharmaceuticals and diagnostics, with a strong neurology portfolio including OCREVUS for MS. Its vast resources and integrated diagnostics business give it an edge in personalized medicine. However, Roche's broader focus dilutes its neurology specialization compared to Biogen.
• Novartis AG (NVS): Novartis competes with Biogen in MS (KESIMPTA) and neuroscience. Its strong pipeline and global reach are advantages, but its recent spin-off of Sandoz (biosimilars) reduces its competitive position in that segment relative to Biogen.
• Eli Lilly and Company (LLY): Eli Lilly is a key competitor in Alzheimer's (donanemab) and neurology. Its strong diabetes and oncology portfolios provide financial stability, but its late entry into neuroscience gives Biogen an early-mover advantage in certain niches.
• Pfizer Inc. (PFE): Pfizer's vast scale and biosimilars business (e.g., RETACRIT) compete with Biogen's offerings. However, Pfizer's focus on vaccines and COVID-19 therapeutics diverts attention from neurology, where Biogen has deeper expertise.
• Seagen Inc. (SGEN): Seagen (now part of Pfizer) specializes in oncology, not directly competing with Biogen's core neurology focus. However, its innovative antibody-drug conjugate technology could eventually overlap with Biogen's neuro-immunology pipeline.