Health and Healthcare

What to Expect From Biogen Earnings

Chris Lange

Published: January 26, 2016 1:50 pm

Last Updated: January 13, 2020 2:33 pm

Biogen Inc. (NASDAQ: BIIB) is set to report its fourth-quarter financial results before the markets open Wednesday. The consensus estimates from Thomson Reuters call for $4.08 in earnings per share (EPS) on $2.71 billion in revenue. In the same period of the previous year, the biotech company posted EPS of $4.09 and $2.64 billion in revenue.

Recently, analysts have been very bullish on this large cap biotech leader. Biogen discovers, develops and delivers to patients worldwide innovative therapies for the treatment of neurodegenerative diseases, hematologic conditions and autoimmune disorders. Founded in 1978, Biogen is one of the world’s oldest independent biotechnology companies, and patients worldwide benefit from its leading multiple sclerosis (MS) and innovative hemophilia therapies.

Analysts have acknowledged in the past that the company’s core MS drug market faces challenges going forward, with most diagnosed patients now treated, payers limiting net benefits from price increases and competing entrants expected. With those issues in mind, Jefferies in particular is still positive on Tysabri, especially for secondary-progressive multiple sclerosis, with upcoming clinical data a big factor.

Prior to the release of the earnings report, a few analysts issued calls on Biogen:

• Barclays reiterated a Buy rating with a $420 price target.
• Wells Fargo reiterated an Outperform rating.
• Credit Suisse initiated coverage with a Neutral rating and a $322 price target.
• JPMorgan reiterated an Overweight rating.
• Standpoint Research initiated coverage with a Buy rating and a $360 price target.

So far in 2016, Biogen has underperformed the broad markets, with the stock down over 14% year to date. Over the past 52 weeks, the number gets worse as the stock is down roughly 27%.

Shares of Biogen were trading down 2.5% at $262.10 on Tuesday, with a consensus analyst price target of $363.31 and a 52-week trading range of $254.00 to $480.18.