Why Biogen Could Be A Buy At These Levels

4/30/19

By Chris Lau, SeekingAlpha

Summary

  • Biogen has yet to recover after discontinuing its drug study for Alzheimer's disease.
  • Compelling valuations.
  • Share buyback and product pipeline are just a few positive catalysts.
  • This idea was discussed in more depth with members of my private investing community, DIY Value Investing. Start your free trial today »

When Biogen (BIIB) discontinued phase 3 trials of aducanumab, a monoclonal antibody Alzheimer's disease, the stock plunged around 30%. Even its first-quarter earnings report, which included a massive share buyback announcement, failed to move the stock. Does Biogen deserve to stay in the doghouse or should investors seeking value start a position in the beaten-down stock?

Biogen (NASDAQ:<h2><strong>Strong First Quarter</strong></h2><p>Biogen’s strong first-quarter results should have given investors more confidence in the company’s near-term prospects. The company <a>reported</a>revenue growing by 11.5% to $3.49 billion. Net income grew 20.1% to $1.41 billion while diluted EPS (non-GAAP) grew by 29%.</p><p><em>Biogen stock in the last three months:</em></p><figure><img src=

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