Biogen Could Engage In $1B-$2B Deals To Fill Revenue Shortfall Gaps, Analyst Says
Portfolio Pulse from Vandana Singh
Biogen Inc (NASDAQ:BIIB) reported Q4 2023 sales of $2.39 billion, missing estimates and showing a 6% Y/Y decline. Adjusted EPS also fell by 27%. The company's partner, Eisai Co Ltd (OTC:ESALY), faces delays with Leqembi's patient enrollment, impacting Biogen's stock growth. Baird analyst lowered Biogen's price target to $316 from $333 but maintained an Outperform rating. Competition in Spinal Muscular Atrophy treatments from Novartis AG (NYSE:NVS) and Roche's Genentech affects Biogen's Spinraza. Biogen may pursue $1B-$2B deals to fill revenue gaps, focusing on the CNS space.
February 14, 2024 | 8:11 pm
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NEUTRAL IMPACT
Novartis AG's Zolgensma presents stiff competition to Biogen's Spinraza in the treatment of Spinal Muscular Atrophy, affecting Biogen's market share.
While NVS's Zolgensma competes with BIIB's Spinraza, the impact on NVS's stock is neutral short-term as the competitive landscape is already known and factored in.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
Biogen reported lower than expected Q4 2023 sales and EPS, with Baird lowering its price target. The company is considering acquisitions to address revenue shortfalls.
The missed earnings and lowered price target by Baird indicate potential short-term negative impact on BIIB's stock price. The consideration of acquisitions to fill revenue gaps may provide some optimism but also introduces uncertainty.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Eisai Co Ltd faces delays with Leqembi's patient enrollment, impacting partner Biogen's stock growth and future revenue prospects.
Eisai's delay in Leqembi enrollment directly impacts Biogen, suggesting a negative short-term impact on ESALY's stock as well, given the partnership's significance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80