Recently, a compelling bullish thesis on Biogen Inc. was published on Investing With Purpose’s Substack. This article delves into the key points of the bullish argument surrounding BIIB. As of September 18th, Biogen’s shares were trading at $143.81, with trailing and forward P/E ratios standing at 13.86 and 9.04 respectively, according to Yahoo Finance.
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As Biogen (BIIB) approaches its Q2 earnings report on July 31, investors are particularly interested in how the rollout of its Alzheimer’s drug, lecanemab, will impact the company’s future, alongside the stability of its multiple sclerosis (MS) treatment segment. Despite trading at a lower valuation than its peers, even with a robust net-cash balance sheet and an advancing pipeline, BIIB appears to be undervalued ahead of potential catalysts. The consensus forecast expects revenue around $2.65 billion, reflecting a 3% year-over-year decline, along with an EPS estimate of $3.20, suggesting a possible upside due to premium pricing for lecanemab. Recent data indicated a 25% reduction in hospitalizations, which has fueled hope for an expanded FDA label and greater adoption of the drug.
In addition to Alzheimer’s advancements, Biogen’s pipeline also includes promising SMA follow-ups and therapies targeting synuclein for Parkinson’s, presenting investors with multiple potential revenue streams through 2027. The company’s strong balance sheet—boasting $10 billion in cash against $6 billion in debt—affords significant flexibility for research and development, share buybacks, or potential mergers and acquisitions. The stock has shown resilience, bouncing off the $125 support level and currently resting just beneath the 100-day simple moving average (SMA) of $129. Resistance levels are found between $132 and $136, with the Relative Strength Index (RSI) positioned neutrally around 50 and a flat Moving Average Convergence Divergence (MACD), setting the stage for a substantial post-earnings movement.
Potential scenarios indicate an upside target between $138 and $145 if earnings surpass expectations, or a downside to $118 to $122 should MS sales disappoint. For investors considering entry, a starting position around $128 to $130 is advisable, allowing for scaling into strength beyond $132 or adding on any pullbacks, while maintaining tight stops to control risk. The upcoming Q2 results could very well serve as the catalyst needed to unlock Biogen’s current undervaluation, with positive developments in the Alzheimer’s space and resilient revenues offering an appealing risk/reward profile.
In a similar context, we previously discussed a bullish thesis regarding Gilead Sciences, Inc. (GILD) presented by Disruptive Analytics in February 2025. This analysis pointed out immediate revenue challenges due to the Inflation Reduction Act, a strong U.S. dollar, and the decline in COVID-related hospitalizations, while also emphasizing Gilead’s prudent cost management and optimistic outlook for 2026. Since that coverage, GILD has seen an approximate appreciation of 9.16%. The bullish perspective on Gilead endures; however, Investing With Purpose focuses on Biogen’s long-term undervaluation, the catalyst from Alzheimer’s drugs, and the favorable immediate trading setup.
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