Biogen Trading Gets Volatile With Earnings Report

Biogen Earnings Report Features Multiple Beats

Biogen's (NASDAQ: BIIB) report delivered several significant beats, perhaps best of all on its earnings. The company posted $5.68 per share in earnings, with a FactSet consensus calling for $4.55 per share. Biogen's earnings were down substantially, however, against this time last year, when the company posted $10.26 per share.

Revenue, meanwhile, behaved similarly, coming in up against expectations but down against last year at this time. Biogen posted $2.78 billion in sales against a FactSet consensus of $2.61 billion and last year's figures of $3.68 billion.

The results from this quarter were sufficiently positive to send Biogen's expectations for the full year upward as well. The company offered guidance calling for adjusted earnings per share figures for the full year of between $17.50 and $19 per share. That falls within analyst expectations calling for $18.50 per share. Additionally, the company set its revenue target at between $10.65 billion and $10.85 billion, an upward adjustment from previous figures calling for between $10.45 billion and $10.75 billion. With analysts looking for $10.61 billion in revenue, that also fits within the expected range.

Approval of Aduhelm, the company's treatment for Alzheimer's disease, gave the company a boost as it posted around $2 million in initial sales. Analysts, on average, were looking for $3.23 million by now, however, based on data from Refinitiv. While some controversy emerged about the Food and Drug Administration (FDA) and its approval of Aduhelm, or aducanumab as it's known, Biogen's head of research and development Alfred Sandrock invited formal review into the process, noting that “a better understanding of the facts is good for everyone involved.”

Biogen news wasn't completely positive, however; while Aduhelm looks to be a winner, the company had several significant failures in the last few months. Said failures are set to cost the company $542 million in impairment charges, reports note, including a $350 million charge for timrepigene emparvovec, or BIIB111. BIIB111 was supposed to treat choroideremia, a condition that causes a loss of night vision, and occurs largely in males. Additionally, a loss of $192 million was posted for BIIB112, which targeted retinitis pigmentosa, a genetic disorder that causes a breakdown in light-sensitive cells in the retina. Both of these came about as the result of Biogen's purchase of Nightstar Therapeutics for $877 million, reports note.

Biogen isn't taking this lying down, though, and has already established new collaborative efforts with Mirimus Inc. to target several neurological diseases. Mirimus will be engineering therapeutics around RNAi bases, and Biogen will assess these products to determine if they're suitable for treating said neurological diseases.

How Do Financial Analysts Feel About BIIB Stock?

While trading in BIIB stock has been volatile today, financial analysts remain strongly in favor of buying in. Biogen stock has been consensus rated “buy” for the last two years now.

A year ago, Biogen had 18 “buy” ratings and 14 “hold” to its credit. Six months ago, meanwhile, that shifted to 19 “buy” and 14 “hold”. Today, it stands at 17 “buy” and 13 “hold” ratings. While the decline in “buy” recommendations may concern some, the accompanying decline in “hold” keeps the overall perspective approximately the same.

Biogen share price targets occupy a fairly broad range. The current average price target is $383.07, with a high of $500 and a low of $244. With Biogen stock seen trading around $323 today, there is significant upside potential remaining as the share price is trading below the average target price.

Recent developments for Biogen have been largely mixed. Two analysts—Evercore ISI and Robert W. Baird—set price targets this month, while Morgan Stanley lowered its target slightly from $455 to $453. June, meanwhile, featured multiple price target increases and outright ratings upgrades for the company.

Companies in This Article:

CompanyCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Biogen (BIIB)$325.40flatN/A26.12Buy$385.33