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Biogen's TOFIDENCE biosimilar gets European approval

EditorNatashya Angelica
Published 24/06/2024, 18:06
BIIB
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CAMBRIDGE, MA - Biogen Inc. (NASDAQ:BIIB) today announced the European Commission's approval of TOFIDENCE™, a biosimilar to the reference product ROACTEMRA®, for multiple inflammatory conditions including rheumatoid arthritis and COVID-19.

This authorization allows the introduction of TOFIDENCE in European markets, expanding treatment options for patients with moderate to severe active rheumatoid arthritis, juvenile idiopathic arthritis, and severe COVID-19 requiring supplemental oxygen or mechanical ventilation.

The approval is based on a comprehensive data package demonstrating TOFIDENCE's comparability in safety and efficacy to the reference product. This includes results from a Phase 1 study comparing TOFIDENCE with tocilizumab in healthy volunteers and a Phase 3 study in subjects with rheumatoid arthritis. Ian Henshaw, Global Head of Biosimilars at Biogen, emphasized the potential for TOFIDENCE to offer significant cost savings for healthcare systems across Europe.

Biogen's collaboration with Bio-Thera Solutions, Ltd., established in April 2021, grants Biogen exclusive rights to TOFIDENCE in all countries except China, including Hong Kong, Macau, and Taiwan. TOFIDENCE, an interleukin-6 receptor antagonist, is indicated for patients who have had an inadequate response to previous therapies or for whom such therapies are inappropriate.

The company, a pioneer in biotechnology since 1978, focuses on innovative science to deliver new medicines and create shareholder and community value. While the press release contains forward-looking statements regarding the potential of TOFIDENCE and Biogen's pipeline programs, it also acknowledges the risks and uncertainties inherent in drug development and commercialization.

This news article is based on a press release statement from Biogen Inc. detailing the European Commission's approval of TOFIDENCE.

In other recent news, Biogen has maintained its strong position in the pharmaceutical sector with significant developments. Both Stifel and RBC Capital reaffirmed their confidence in the company, maintaining their Buy and Outperform ratings respectively, with price targets set at $275 and $317.

The analysts' endorsement follows the release of briefing documents for the FDA's Advisory Committee meeting to discuss donanemab, a treatment developed by Biogen.

In addition to this, Biogen's ALS drug, QALSODY, has been approved for marketing in the European Union, a first for a therapy targeting a genetic cause of ALS. The company is also set to acquire Human Immunology Biosciences (HI-Bio) for an upfront payment of $1.15 billion, with an additional $650 million tied to potential development milestones.

This acquisition is expected to enhance Biogen's portfolio, specifically with the addition of HI-Bio's leading asset, Felzartamab.

These are among the recent developments that continue to shape Biogen's trajectory in the industry. However, as these are ongoing developments, further updates from the company and analysts are expected.

InvestingPro Insights

As Biogen Inc. (NASDAQ:BIIB) secures the European Commission's nod for TOFIDENCE™, investors and stakeholders are closely monitoring the company's financial health and market performance. With a market capitalization of $32.61 billion, Biogen stands as a significant entity in the biotechnology industry.

Its Price/Earnings (P/E) ratio, which is a key indicator of the company's valuation, currently sits at 27.73. However, when adjusted for the last twelve months as of Q1 2024, the P/E ratio becomes more attractive at 19.59, potentially signaling an undervaluation relative to earnings.

Despite a revenue decline of 4.37% over the last twelve months as of Q1 2024, Biogen maintains a strong gross profit margin of 75.49%, highlighting efficient operations and cost control. Furthermore, Biogen's operating income margin of 20.59% during the same period showcases its capability to translate sales into profits effectively.

An InvestingPro Tip of note is that Biogen is a prominent player in its industry, and analysts predict the company will be profitable this year, having been profitable over the last twelve months. Additionally, Biogen's stock tends to trade with low price volatility and often moves counter to market trends, which may appeal to investors seeking a hedge during market fluctuations.

For more detailed analytics and additional InvestingPro Tips, such as insights into Biogen's liquidity position and dividend policy, interested readers can visit InvestingPro. There are currently 7 additional tips available on InvestingPro, providing a deeper dive into the company's financial metrics and market behavior. To access these insights, readers can use the promo code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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