Biogen Inc (BIIB): New Buy Recommendation for This Healthcare Giant

In a report released today, Jay Olson from Oppenheimer maintained a Buy rating on Biogen Inc (BIIBResearch Report), with a price target of $375. The company’s shares closed yesterday at $321.54.

Olson commented:

“We update our views on aducanumab after recent Alzheimer’s narrative following crenezumab failure. Our latest thoughts include: 1) Roche commentary on crenezumab and gantenerumab, 2) input from a leading KOL, 3) further review of published data for aducanumab and other molecules, and 4) disclosures regarding plans to advance BAN2401 into a single registrational study and aducanumab into a prevention study. Separately, we note the USPTO decision to institute an IPR challenging the Tecfidera ‘514 patent increases the probability of patent cancellation from 9% to 15% according to published data (Exhibit 3). We remain optimistic on aducanumab and encouraged by recent events although we update our revenue and EPS estimates for BIIB based on the Tecfidera IPR and 10K resulting in our new $375 price target (from $380). Details inside.”

According to TipRanks.com, Olson is ranked 0 out of 5 stars with an average return of -5.8% and a 38.7% success rate. Olson covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals Inc, Conatus Pharmaceuticals, and Enanta Pharmaceuticals.

Biogen Inc has an analyst consensus of Moderate Buy, with a price target consensus of $378.33, implying a 17.7% upside from current levels. In a report issued on January 30, Cantor Fitzgerald also maintained a Buy rating on the stock with a $400 price target.

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Based on Biogen Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $947 million. In comparison, last year the company had a GAAP net loss of $297 million.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BIIB in relation to earlier this year.

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Biogen, Inc. is a biopharmaceutical company, which engages in discovering, developing, and delivering therapies for neurological and neurodegenerative diseases. It offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA, and FAMPYRA for the treatment of multiple sclerosis; SPINRAZA for the treatment of spinal muscular atrophy; and FUMADERM for the treatment of severe plaque psoriasis. The company was founded by Charles Weissmann, Heinz Schaller, Kenneth Murray, Walter Gilbert, and Phillip Allen Sharp in 1978 and is headquartered in Cambridge, MA.