Barron’s Likes Biogen

In the wake of its strong earnings report, Johanna Bennett at Barron’s notices that Biogen (BIIB) is going for a good value,

Biogen investors have good reason to stay bullish.

Tecfidera sales appear to have stabilized. Biogen has a major restructuring underway and has one of the most promising experimental drug pipelines in the industry.

With the company reportedly exploring the sale of its hemophilia drug business, Biogen’s $6.8 billion cash pile could swell, spurring more acquisitions and share buybacks.

At 15 times expected 2016 earnings, the stock has rarely been this cheap in the last five years, due partly to growth concerns.

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While investors are scrutinizing Tecfidera sales, Biogen stock is worth buying given its attractive valuation, depressed price and the company’s appealing prospects.

The shares are up 6.3% in the last two days.

Posted by on April 22nd, 2016 at 8:03 pm


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