Biogen (BIIB) Valuation Check After Positive Neurology Data for Lecanemab and Zorevunersen

Biogen (BIIB) has been back in the spotlight after fresh data on two key neurology programs, zorevunersen for Dravet syndrome and subcutaneous lecanemab for Alzheimer’s, landed at major medical meetings this month.

See our latest analysis for Biogen.

Those upbeat data drops seem to be breathing life back into sentiment, with a 21.31 percent 3 month share price return and a stronger 1 year total shareholder return of 16.66 percent, even though the 5 year total shareholder return of negative 29.10 percent shows long term holders are still waiting for a full reset.

If these neurology readouts have you rethinking the space, it could be a good moment to scout other potential winners among healthcare stocks and see what the market might be underpricing.

Yet despite a rich neurology pipeline and a headline intrinsic discount, Biogen still trades only slightly below consensus targets. This raises a key question for investors: is this a genuine value opportunity, or is future growth already priced in?

Most Popular Narrative Narrative: 1.7% Undervalued

With Biogen last closing at $175.74 against a narrative fair value near $179, the story hinges on whether modest upside reflects durable earnings power.

Analysts are assuming Biogen's revenue will decrease by 2.1% annually over the next 3 years.

Analysts assume that profit margins will increase from 15.3% today to 22.4% in 3 years time.

Read the complete narrative.

Curious how shrinking sales can still support a higher value? The explanation lies in how profitability, share count, and the future earnings multiple interact. Want the full blueprint?

Result: Fair Value of $178.76 (UNDERVALUED)

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

However, this hinges on flawless execution, as setbacks in key launches like Leqembi or intensifying MS competition could quickly upend the modest undervaluation case.

Find out about the key risks to this Biogen narrative.

Build Your Own Biogen Narrative

If you want to stress test these assumptions or follow your own thesis, you can build a customized Biogen narrative in 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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