Biogen (BIIB) January 25, 2018

Transcription

1 Biogen (BIIB) January 25, 2018 Katherine Perkner Marketing Manager Soraya Sartipi Fixed Income Manager Olivia Talbott Operations Manager

2 Table of Contents Investment Thesis Leadership Company Overview Competitors Pipeline Analysis Global Reach SWOT Analysis Revenue Breakdown Summary Stock Performance Recommendation

3 Company Overview Biogen, Inc. is an American multinational biotechnology company based in Cambridge, Massachusetts. specializing in the discovery, development, and delivery of therapies for the treatment of neurodegenerative, hematologic, and autoimmune disease to patients worldwide.

4 Investment Thesis We believe that Biogen (BIIB) would be beneficial to our portfolio because of its strength in the Biotechnology realm of the Healthcare industry. The company s strong pipeline of products and clinical trials, global reach, business strategy, and valuation all are reasons we would like to invest in Biogen today.

5 Macro Outlook

6 Macro Outlook

7 Leadership George Scangos, Former CEO Salary: $1,500,000 Stock Award: $13,007,653 Michel Vounatsos, CEO Michael Ehlers, EVP, Head of R&D Salary: $500,000 Bonus: $1,500,000 Stock Award: $3,151,000 Salary: $491,000 Bonus: $1,171,000 Stock Award: $3,410,000

8 Company Overview Creating New Sources of Value Current Execution of Core Business Maximize resilience of MS core business Accelerating programs in spinal muscular atrophy Creating a leaner and simpler operating model Develop and expand neuroscience platform Re-prioritizing capital allocation efforts

9 Core Growth Areas MS & Neuroimmunology Investing new approaches to repair damaged nerves Goal to improve pre-existing disability Alzheimer s Disease/Dementia Portfolio represents the latest advances in Alzheimer s disease Constantly pursuing external collaborations Movement Disorders Directed towards Parkinson s Disease Neuromuscular Disorders First and only therapy for Spinal Muscular Atrophy (SMA) Focused on inherited forms of ALS

10 Emerging Growth Areas Main focus is to create synergies and leverage their scientific expertise from their Core Growth Areas. Pain Ophthalmology Neuropsychiatry Acute Neurology

11 Clinical Trials Current Clinical Trials for Investigational and Marketed Therapies 16 active trials in Phases 1 and 2 38 active trials in Phase 3 29 active trials in Phase 4 Disease areas Alzheimer s Disease Multiple Sclerosis Progressive Supranuclear Palsy (PSP)

12 Pipeline

13 Clinical Programs Core Growth Areas Emerging Growth Areas

14 Global Reach

15 Revenue Breakdown

16 Stock Performance

17 Competitors Celgene Corporation Debt Recently pulled studies More volatile Amgen Corporation Risk through biosimilars Inconsistent growth Vertex Pharmaceuticals Incorporation Poor performance over the past six months Novo Nordisk Low growth potential Alexion Pharmaceuticals Poor performance over the past six months. Poor returns

18 Comps Analysis

19 Comps Analysis

20 Comps Analysis

21 Comps Analysis

22 Comps Analysis

23 Comps Analysis

24 SWOT Analysis Strengths: Strong global reach Solid pipeline and R&D ventures Global leader in MS Weaknesses: Relatively new management Strong dependency on revenues from products Opportunities: New acquisitions to pipeline Obtaining exclusive rights on drug and product offering Expanding their global reach Threats: Competitive pressure from Roche s newly launched MS drug. Failure of early stage clinical trials

25 Fundamental Analysis

26 Valuation

27 Valuation

28 News & Outlook

29 Recent News Q Earnings release January 25, % revenue growth from Income tax charge of $1.57 billion due to tax code change

30 2018 Outlook 2017 Performance Revenue 2018 Guidance $12.3 Billion $12.7 to $13 Billion R&D Expense 18% 16%-17% SG&A Expense 16% 15%-16% Tax Rate 48% 23.5% to 24.5% $11.92 $22.20 to $23.20 GAAP EPS

31 Product Performance

32 Investment Proposal

33 Proposal We propose to buy 42 shares of BIIB at a price of $ for a total of $14,

34 Portfolio Configuration

35 Questions?