Biogen currently has three blockbuster drugs in its portfolio: Tecfidera, Avonex, and Tysabri. These MS drugs are the key contributors to the company’s revenues. Though Tecfidera sales witnessed a slowdown in the recent quarters, it registered a ~12% YoY (year-over-year) revenue growth in 2Q16. Also, the sales of Avonex and Plegridy, Biogen’s interferon drugs, have witnessed headwinds due to the competition from the oral alternatives in the market. Tysabri, however, is going strong and expected to witness a rise in sales due to the positive label update in Europe and an extended indication.
Biogen’s Alzheimer’s drug, aducanumab, which is under late-stage trials, is a highly attractive product that will be a first of its kind in the attractive $5 billion Alzheimer’s market in the United States. Additionally, Biogen’s late-stage study of Nusinersen in the area of spinal muscular atrophy in infants in collaboration with Ionis Pharmaceuticals (IONS) is also promising for the company.
Biogen has a strong balance sheet with a stable debt ratio. Also, the company’s top line and bottom line both have seen stable growth in the recent quarters. Biogen is trading at a decent valuation as compared to its peers and average industry multiple.
Next, let’s discuss Biogen’s hemophilia business spin-off.
View more information: https://marketrealist.com/2016/09/whats-behind-biogen-buyout-rumors/