Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In today's rapidly evolving and fiercely competitive business landscape, it is crucial for investors and industry analysts to conduct comprehensive company evaluations. In this article, we will undertake an in-depth industry comparison, assessing Biogen (NASDAQ:BIIB) alongside its primary competitors in the Biotechnology industry. By meticulously examining crucial financial indicators, market positioning, and growth potential, we aim to provide valuable insights to investors and shed light on company's performance within the industry.
Biogen Background Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel multiple sclerosis drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is copromoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with Sobi) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021, followed by Leqembi in January 2023.
CompanyP/EP/BP/SROEEBITDA (in billions)Gross Profit (in billions)Revenue Growth| Biogen Inc | 14.30 | 2.63 | 3.82 | 4.19% | $0.87 | $1.86 | -5.14% |
| AbbVie Inc | 30.44 | 20.30 | 4.69 | 15.4% | $5.42 | $9.62 | -4.92% |
| Amgen Inc | 19.14 | 22.41 | 5.74 | 22.74% | $3.26 | $5.17 | 5.94% |
| Gilead Sciences Inc | 17.85 | 4.57 | 3.58 | 4.96% | $2.5 | $5.16 | 5.42% |
| Vertex Pharmaceuticals Inc | 28.67 | 6.19 | 10.15 | 6.12% | $1.21 | $2.18 | 13.52% |
| Regeneron Pharmaceuticals Inc | 22.19 | 3.80 | 7.53 | 4.08% | $1.2 | $2.75 | 10.53% |
| Moderna Inc | 34.13 | 2.21 | 3.70 | -7.71% | $-1.64 | $-0.41 | -93.08% |
| BioNTech SE | 5.40 | 1.18 | 2.57 | -0.95% | $-0.38 | $-0.37 | -94.75% |
| Biomarin Pharmaceutical Inc | 166.04 | 3.40 | 7.37 | 1.19% | $0.1 | $0.47 | 11.52% |
| Incyte Corp | 35.34 | 2.72 | 3.69 | 4.42% | $0.3 | $0.89 | 4.74% |
| Neurocrine Biosciences Inc | 63.39 | 5.95 | 6.84 | 5.4% | $0.13 | $0.44 | 19.7% |
| United Therapeutics Corp | 13.21 | 2.02 | 5.45 | 4.92% | $0.36 | $0.53 | 27.76% |
| Exelixis Inc | 42.71 | 2.69 | 4.06 | 3.19% | $0.08 | $0.45 | 12.02% |
| Grifols SA | 48.36 | 0.96 | 0.87 | 1.02% | $0.25 | $0.62 | 7.81% |
| Average | 40.53 | 6.03 | 5.1 | 4.98% | $0.98 | $2.12 | -5.68% |
th, td { padding: 8px; text-align: left; }
th { background-color: #293a5a; color: #fff; text-align: left; }
tr:nth-child(even) { background-color: #f2f4f8; }
tr:hover { background-color: #e1e4ea; }
td:nth-child(3), td:nth-child(5) { text-align: left; }
.dividend-amount { font-weight: bold; color: #0d6efd; }
.dividend-frequency { font-size: 12px; color: #6c757d; } After thoroughly examining Biogen, the following trends can be inferred:
- A Price to Earnings ratio of 14.3 significantly below the industry average by 0.35x suggests undervaluation. This can make the stock appealing for those seeking growth.
- Considering a Price to Book ratio of 2.63, which is well below the industry average by 0.44x, the stock may be undervalued based on its book value compared to its peers.
- With a relatively low Price to Sales ratio of 3.82, which is 0.75x the industry average, the stock might be considered undervalued based on sales performance.
- The company has a lower Return on Equity (ROE) of 4.19%, which is 0.79% below the industry average. This indicates potential inefficiency in utilizing equity to generate profits, which could be attributed to various factors.
- With lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $870 Million, which is 0.89x below the industry average, the company may face lower profitability or financial challenges.
- The gross profit of $1.86 Billion is 0.88x below that of its industry, suggesting potential lower revenue after accounting for production costs.
- The company is experiencing remarkable revenue growth, with a rate of -5.14%, outperforming the industry average of -5.68%.
The debt-to-equity (D/E) ratio gauges the extent to which a company has financed its operations through debt relative to equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When evaluating Biogen alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
- When considering the debt-to-equity ratio, Biogen exhibits a stronger financial position compared to its top 4 peers.
- This indicates that the company has a favorable balance between debt and equity, with a lower debt-to-equity ratio of 0.46, which can be perceived as a positive aspect by investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.