Biogen (BIIB, $288.04) beats Q3 earnings and revenue estimates; new data revives possibility of Alzheimer’s therapy
Biogen Inc. topped analysts’ estimates in both earnings and revenue, while also indicating renewed hope for a Alzheimer’s therapy.
The biotech company's third-quarter 2019 earnings per share of $9.17 beat the Zacks Consensus Estimate of $8.28. Earnings rose +24% year over year.
The company’s sales for the quarter increased +5% year-over-year to $3.6 billion, surpassing Zacks Consensus Estimate of $3.53 billion.
Biogen’s product revenue increased +4% year-over-year for the quarter, while its royalty from sales of Roche’s MS drug, Ocrevus surged +37% year-over-year. Revenues from Biogen’s share of Rituxan and Gazyva operating profits increased +9%. Other revenues declined -26%.
The company’s MS revenues including Ocrevus royalties, increased +2% .
Spinal Muscular Atrophy drug Spinraza sales rose +17% year-over-year. The number of patients on Spinraza grew approximately 3% in the U.S., and 18% outside the United States quarter-over-quarter.
Combined interferon revenues (Avonex and Plegridy) fell -10% year over year.
In Biosimilars (Samsung Bioepis, the joint venture between Biogen and Samsung BioLogics), BENEPALI revenue fell -6% y-o-y, IMRALDI which was launched in mid-October last year had a +4% growth quarter-over-quarter, while FLIXABI grew +63% year-over-year.
A major potential breakthrough for Biogen could be coming with new data revealing that aducanumab is pharmacologically and clinically active as determined by dose-dependent effects in reducing accumulation of amyloid, a kind of protein, in the arteries of the brain. Based on this data, Biogen plans to submit a biologics license application (BLA) seeking approval of aducanumab to the FDA in early 2020.
BIIB's RSI Indicator climbs out of oversold territory
The RSI Oscillator for BIIB moved out of oversold territory on December 23, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 37 similar instances when the indicator left oversold territory. In of the 37 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 03, 2025. You may want to consider a long position or call options on BIIB as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BIIB just turned positive on December 24, 2024. Looking at past instances where BIIB's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BIIB advanced for three days, in of 260 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 48 cases where BIIB's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BIIB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for BIIB entered a downward trend on January 02, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BIIB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.110) is normal, around the industry mean (5.632). P/E Ratio (26.955) is within average values for comparable stocks, (48.974). BIIB's Projected Growth (PEG Ratio) (8.807) is slightly higher than the industry average of (3.004). Dividend Yield (0.000) settles around the average of (0.164) among similar stocks. P/S Ratio (3.181) is also within normal values, averaging (3.643).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BIIB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
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General Information
a manufacturer of therapies for people living with neurological, autoimmune and hematologic disorders
Industry PharmaceuticalsMajor