A Look at Biogen (BIIB) Valuation Following Australian LEQEMBI Approval and Fresh Analyst Optimism

Biogen (BIIB) just saw Australia’s Therapeutic Goods Administration approve LEQEMBI for early Alzheimer’s in adults. This marks a fresh milestone that expands access to this treatment and supports Biogen’s growing late-stage pipeline.

See our latest analysis for Biogen.

Biogen’s latest milestones, such as the Australian approval for LEQEMBI and a series of global regulatory wins, are helping rebuild market confidence after a period of lackluster results. While long-term total shareholder returns still reflect pressure, down just over 13% over the past year and showing deeper declines over three and five years, recent momentum is shifting as the stock has participated in the broad pharma rally sparked by blockbuster drug approvals and positive sector news. If Biogen can continue converting its pipeline into commercial assets, sentiment may continue to improve.

Curious which other healthcare stocks are gaining ground on fresh approvals and pipeline innovations? Explore promising opportunities with our See the full list for free..

With new approvals and a recovering outlook, the key question for investors is whether Biogen shares are still undervalued or if recent optimism means the market has already priced in the company’s growth potential.

Most Popular Narrative: 6% Undervalued

With Biogen shares trading at $159.88, just below the most widely followed narrative’s fair value estimate of $170.03, there may be room for a moderate rerating if the core fundamentals materialize. Here’s what sets the tone for this outlook.

Demand for Biogen's Alzheimer's therapy LEQEMBI is poised for structural long-term growth, supported by a rapidly aging global population and accelerating rates of mild cognitive impairment diagnoses facilitated by breakthroughs in blood-based biomarkers and expanding diagnostic infrastructure. These factors position Biogen to capture a larger patient pool and drive sustained revenue expansion.

Read the complete narrative.

Wondering which bold moves and financial leapfrogging justify this premium? It’s all about expanding global reach, breakthrough diagnostics, and big gains in future profitability. See exactly what projections power this narrative’s fair value.

Result: Fair Value of $170.03 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competition in multiple sclerosis, along with setbacks for new drug launches, could challenge Biogen’s path to long-term earnings growth and stability.

Find out about the key risks to this Biogen narrative.

Build Your Own Biogen Narrative

If you’re not sold on the consensus or prefer to dig into the numbers on your own, you can uncover your own Biogen story in just a few minutes. Do it your way.

A great starting point for your Biogen research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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