Summary
- Biogen had impressive second quarter results, with a single digit P/E ratio despite its growing businesses.
- The company submitted its BLA for its Alzheimer's drugs and has a number of other exciting drugs in its portfolio.
- Overall, I recommend investors pay close attention to the company and its potential for significant shareholder rewards.
- I do much more than just articles at The Energy Forum: Members get access to model portfolios, regular updates, a chat room, and more. Get started today ยป
Biogen's (NASDAQ: BIIB) share price is mostly back to where it was when the company reported 2Q 2020 earnings a week ago. However, despite this, the company reported strong earnings with significant potential in major markets. The company's focus on new markets, along with the strength of its existing portfolio means the potential for significant returns.
Biogen New Businesses
Biogen is focused on building up an exciting and high potential new business.
Biogen Alzheimer's Disease - Biogen Investor Presentation
One of the largest sources of volatility in Biogen's share price is the company's potential launch of Aducanumab. The company has completed the submission of its BLA (Biologics License Application) to the FDA for aducanumab. Most agree that the company's drug will help potential customers, however, the verdict remains out on whether the FDA will approve it.
However, should the drug be approved, along with the rest of the company's neurological portfolio, there's the potential for significant shareholder returns.
Biogen Unmet Patient Need - Biogen Investor Presentation
Biogen is focused on major neurological markets that have significant unmet patient need. There are 50 million patients with dementia, a <5 year life expectancy for those with ALS, and numerous other neurological conditions are leading causes of death. The company expects 7 readouts by the end of 2021, which have the potential to expand the company into new markets.
