BIIB Investment Analysis Report & Stock Research, Biogen IDEC, Inc.

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Biogen IDEC, Incorporated (BIIB)

BIIB Stock Report

2-Year Price History

Recent Price
(6/23 4:00PM) -0.8%
$48.73
52-Week Price
$37.21 - $73.59
Market Capitalization
$14.2 Billion
Dividend Yield
0.00%
Most Recent Dividend
$0.00

Ockham's Rating

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BIIB Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, BIIB the high and low end of the Price to Sales per share ratios are 15.06x and 7.31x respectively.

Notice that BIIB's current Price to Sales per share ratio is 3.56x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $51.67, BIIB is 69% below where we would expect to see it. This will beneficially factor into our final analysis of BIIB as it is not often that this stock sinks to these levels.

BIIB Cash Earnings

Looking at BIIB specifically in their Cash Earnings capabilities, Ockham views BIIB as significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for BIIB to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 38.29 and a 19.08 low over the same period.

Now that BIIB’s current price is $51.67 and its Price to Cash Earnings ratio is 11.11, we are very positive on its outlook from the cash earnings perspective. In fact, BIIB is now trading a full 62% below its average historical Price to Cash Earnings ratio at these profit per share levels. When our clients ask us why BIIB has great long term potential, the Cash Earnings levels to current stock is one of our primary reasons. But naturally, now we need for the overall market to recognize this disparity.

BIIB Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for BIIB to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis. BIIB may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As BIIB more consistent dividend history is made available, we will begin to factor this into the Ockham approach.

Peer Comparison

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Biogen IDEC, Inc. Industry Grouping

(6/22/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding BIIB) 18.68 8.41 » 249.35 2.49 1.92 » 12.64 16.99% 11.19%
*10 year range does not include current year values
Genzyme Corp. GENZ $14.4 Billion $53.41 17.36 10.58 » 207.66 2.84 2.53 » 11.15 21.86% 4.74%
Biogen IDEC, Inc. BIIB $14.2 Billion $49.10 11.11 8.59 » 160.59 3.56 2.61 » 73.89 43.25% 6.14%
Allergan, Inc. AGN $14.0 Billion $45.51 18.16 10.44 » 818.00 2.80 2.00 » 7.89 19.98% 17.23%
Shire PLC American Deposit Receipt Represents 3 Shares SHPGY $7.4 Billion $39.89 16.68 6.93 » 119.61 2.59 1.78 » 12.29 19.56% 7.38%
Forest Laboratories, Inc. FRX $7.1 Billion $23.53 8.51 6.41 » 49.38 1.73 1.44 » 10.88 7.73% 22.58%
Life Technologies Corp. LIFE $7.0 Billion $40.07 32.72 7.72 » 52.12 2.48 1.86 » 20.99 15.81% 4.00%
>
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The latest TV Media Discussion

2:04:18 PM BIIB $53.33 Biogen IDEC, Inc.
19 days ago (06/04)
“…>> peter, rick, thanks to both of you. We have breaking news. We promised from mike huckman. >> erin, here we were 24 hours ago. And the BIOGEN proxy battle is the company just issued a press release a few minutes ago only conceding one seat to dissident …” …more details…
1:36:12 PM BIIB $53.38 Biogen IDEC, Inc.
19 days ago (06/04)
“…General general, while they don't hold ceos accountable, certainly in the case of BIOGEN they do not. If you own the stock, you've lost 25%. If you compare that to a company …” …more details…
1:35:32 PM BIIB $53.39 Biogen IDEC, Inc.
19 days ago (06/04)
“…I do believe they'll be buying biotech companies. By and large, they have do not have good management at the top. The ceo at BIOGEN has not done a good job. The numbers really they put out really -- >> mr. Icahn, what can you really accomplish here with two …” …more details…
7:37:38 AM BIIB $53.43 Biogen IDEC, Inc.
19 days ago (06/04)
“…The goldman stock price is already getting a boost in premarket trading by about $2 after closing at 142 yesterday. Goldman is up to about 144. We also have an eye on BIOGEN there's a battle going back and forth between icahn and company. Icahn about 5 1/2% stake holder in the biotech company. They had a proxy vote. He's trying to get two members with him on to the board. …” …more details…
5:56:59 PM BIIB $53.43 Biogen IDEC, Inc.
Fast Money
20 days ago (06/03)
“…Seen its better part of the wait your space lower. >> carl icahn, friend of the show, had another big day. Got two of the fellows on the board over at BIOGEN. Big day for the stock. Keep an eye on another stock, been beaten up, finally broke out of this $40 range back above you've got to love the sales. The sales were up for their top …” …more details…
4:01:19 PM BIIB $53.43 Biogen IDEC, Inc.
20 days ago (06/03)
“…Inventory levels unexpectedly jumped by nearly 3 million barrels on less demand. Carl icahn is claiming a partial victory in his proxy battle with BIOGEN IDEC. The activist investor has one two of the four seats pfs seeking on the biotech board of >>> watching more news coming out of russia in the second installment of maria bartiromo's …” …more details…
3:31:15 PM BIIB $53.36 Biogen IDEC, Inc.
20 days ago (06/03)
“…As I said inside, this could become a bench mark company in the industry for biotech. Whether through an acquisition or the stock price going up a >> reporter: however, a BIOGEN IDEC spoke person says the results are still tabulated and it is premature to comment on the outcome of today's vote. The company did close the poll this afternoon. …” …more details…
3:30:51 PM BIIB $53.31 Biogen IDEC, Inc.
20 days ago (06/03)
“…That will not be icahn's mo with >> not to put the company up for I think that over time it may be the case that BIOGEN could be bought by a large pharmaceutical company. Our view very much is this company should be fixed it. Can be made a lot better as …” …more details…
3:30:14 PM BIIB $53.31 Biogen IDEC, Inc.
20 days ago (06/03)
“…The other side saying, huh-uh, not so fast. Carl icahn's camp claims four dissident board nominees have won two seats on the board of directors at BIOGEN. If these results hold up, that would represent back to back wins for the investor icon. …” …more details…
3:29:47 PM BIIB $53.31 Biogen IDEC, Inc.
20 days ago (06/03)
“…Beginning of march right now. Not a bad gain there. >>> activist investor carl icahn claiming a parable victory in his proxy fight with BIOGEN. Mike huckman is at the meeting in cambridge, massachusetts, with the latest. >> reporter: a day that was definitely filled with drama, tension, and intrigue ends with …” …more details…
3:26:08 PM BIIB $53.28 Biogen IDEC, Inc.
20 days ago (06/03)
“…Dow off 115 points. Nasdaq, bill, down >>> > up nextxt, if activist investor carl icahn has won his proxy battle with BIOGEN adex. …” …more details…
3:07:53 PM BIIB $53.47 Biogen IDEC, Inc.
20 days ago (06/03)
“…That i've been following a lot of headlines crossing related to nasdaq traded point out what is going on with BIOGEN. Carl icahn waged a proxy fight to win board seats on the company board. The "wall street journal" confirming that carl icahn has won two board seats on BIOGEN IDEC board. Trying to not only sell the company but shape up the company, and the investors liking the prospect he is will bring to their future. Yahoo out with headlines. The company ceo carol bartz …” …more details…
3:00:13 PM BIIB $53.52 Biogen IDEC, Inc.
20 days ago (06/03)
“…>>> carl icahn slate of director candidates says it's won two of four seats on BIOGEN adex board. The company is premature. >>> yahoo! Ceo says a search deal between yahoo! And microsoft could yield up to $700 million in cost savings but says yahoo! Isn't under any pressure …” …more details…
2:16:29 PM BIIB $53.07 Biogen IDEC, Inc.
20 days ago (06/03)
“…Right now on biogwen. They're closing voting at the shareholder meeting and the company says the result and carl icahn's proxy fight still being tabulated. BIOGEN will issue a statement later today but may not have a final vote count. Certainly mr. Icahn is trying to get a handle on the board and he may be close at this >> six g.M. Plants are set to …” …more details…
2:11:45 PM BIIB $53.23 Biogen IDEC, Inc.
20 days ago (06/03)
“…However, carl icahn's camp is claiming victory for two board seats out of the four they were seeking. They're saying according to their proxy solicitor service they have won two of the board seats on the board of BIOGEN IDEC, but apparently the company is not yet willing to concede defeat because they say that this shareholder meeting isn't over yet and won't be over, they say, until later this month. More later on the closing bell. …” …more details…
2:11:20 PM BIIB $53.23 Biogen IDEC, Inc.
20 days ago (06/03)
“…Hours, then reconvened at the top of the hour for all of two minutes to simply say, okay, now the polls are closed. We're going to adjourn, then reconvene, quote, unquote, later this month at BIOGEN IDEC headquarters. A spokesperson then clarified that by telling reporters that the results are still being tabulated and that it's premature to comment on the …” …more details…
2:10:56 PM BIIB $53.28 Biogen IDEC, Inc.
20 days ago (06/03)
“…Pimco website came out today. We have it now? Mike huckman. There you are, mike. BIOGEN IDEC, I wasn't dreaming. You have some news, sir. >> yeah, erin. Mary thompson is really our resident proxy season expert, but I have to tell you this is the most bizarre shareholder meeting i've ever covered. …” …more details…
2:05:16 PM BIIB $53.54 Biogen IDEC, Inc.
20 days ago (06/03)
“…Rally in high grade corporates more of a way to go. >> thanks very much to you. Of you there. Rick, bob and mary. We have breaking news from mike huckman. From the BIOGEN IDEC meeting where carl icahn has been playing a role. What do you have, mike? Okay. That was -- apologize that was a mrs. Take there. We don't have mike huckman. …” …more details…
1:56:11 PM BIIB $53.59 Biogen IDEC, Inc.
20 days ago (06/03)
“…You talked about that earlier. But he's doing pretty well in that particular arena. >> yeah, he did fail with BIOGEN IDEC last year, let's point that out. He did sell imclone. Then he sold metamune to astrazeneca. He does have a strong record in …” …more details…
12:42:12 PM BIIB $54.12 Biogen IDEC, Inc.
20 days ago (06/03)
“…>> because it's a good company. It should stay that way. >> now, this is the second straight year that carl icahn has waged a proxy battle against BIOGEN IDEC. He failed last year after the company he was upset over, the company not being able to find a buyer for itself. But he may be feeling emboldenened today, fresh, off …” …more details…
12:41:15 PM BIIB $54.22 Biogen IDEC, Inc.
20 days ago (06/03)
“…Them and that the company is busily as I speak working the phones with large institutional investors trying to get them to change their vote. A spokesperson for BIOGEN IDEC told me no comment on that earlier, I spoke with shareholders on both sides of this bidder proxy fight. >> I believe that the -- that …” …more details…
12:39:48 PM BIIB $54.20 Biogen IDEC, Inc.
20 days ago (06/03)
“…@@[email protected]@ >>> just a wee bit of drama unfolding in the biotech battle with carl icahn. This involves BIOGEN's idec. Mike huckman with the story. >> the BIOGEN IDEC shareholder meeting here in cambridge, massachusetts where the biotech company is headquartered was surprisingly called in to recess earlier this morning until 2:00 eastern time this afternoon as …” …more details…
12:36:35 PM BIIB $54.24 Biogen IDEC, Inc.
20 days ago (06/03)
“…Influences going on, you can't discount that. >> I think you're probably right. Quick break, carl icahn in the spotlight at BIOGEN shareholder >>> of course, 12:45 eastern time, we're less than ten minutes away for the "fast money halftime report." how do you explain snapping the four-day winning streak so far today? …” …more details…
11:25:31 AM BIIB $53.95 Biogen IDEC, Inc.
20 days ago (06/03)
“…>> alex dinner with icahn capital, thanks for joining us. Look forward to talking you to you later as this drama plays for the record, a spokesperson for BIOGEN eye deck said the company has quote unquote no >> quick market check for you, down 69 on the dow. Go back and listen to that …” …more details…
11:23:30 AM BIIB $53.73 Biogen IDEC, Inc.
20 days ago (06/03)
“…Immediate order to close the polls in the shareholder voting here at the BIOGEN IDEC chair holder meeting. Joining me live is one of icahn's nominees here at BIOGEN eye deck, alex penner, thank you thanks for joinsing us. You just won a seat on the pharmaceuticals board. Why are you trying to get a …” …more details…
9:15:05 AM BIIB $52.32 Biogen IDEC, Inc.
20 days ago (06/03)
“…Handful of protestors a few yards from where I am standing. They are union members complaining about this fact that BIOGEN IDEC employed them to do construction work and they don't like the executive compensation levels at BIOGEN IDEC. Carl icahn is not here today but the top lieutenant if you will, dr. Alex dinner, is here as his surrogate. He is one of the icahn nominees for the BIOGEN IDEC board. >> icahn is known for activist investing in a lot of ways, some successful, not not. What is his track record in biotech? >> it's been mixed recently. …” …more details…
9:14:05 AM BIIB $52.32 Biogen IDEC, Inc.
20 days ago (06/03)
“…Dodd today when they each won a seat on that board and ousted the current chairman and the lead independent director. Icahn reportedly owns 16 million shares or 5 1/2% of BIIB. One proxy advisory firm is backing two of icahn's former nominees. Two other advisers are endorsing the company who says it is executing well in a tough environment and has the right …” …more details…
9:19:52 AM BIIB $51.10 Biogen IDEC, Inc.
25 days ago (05/29)
“…I believe riskmet trilks saidrics said, hey, go for three board seats. I believe two did go the way of the activists. A big one coming up next week is BIOGEN BIOGEN. There, again, mr. Icon seeking as many as five seats. Riskmetrics comes out and says, hey, I think you should get two. Very different from a year ago …” …more details…
10:33:18 AM BIIB $51.16 Biogen IDEC, Inc.
27 days ago (05/27)
“…Carl is going to be on the phone for you, mike. I think he's about 73. Very busy. It will be interesting to see what happens with BIOGEN and we're here to talk a bit more about capital raising going on. We talked a lot this morning about bank of america and its exchange of some preferred into didn't want to leave out key …” …more details…
5:18:49 PM BIIB $49.20 Biogen IDEC, Inc.
Fast Money
5/12/2009 5:18 PM
“…>> exelus? >> I don't know if he's got a it says he's got a stake in am and BIOGEN. >> pete, which names are you >> I know you're good friends with the whole gang at lilly. And they have 50 different data points they're going to be presenting. That one seems to be pretty exciting. Is lilly because of the imclone, is that what's really feeding …” …more details…
3:06:50 PM BIIB $50.12 Biogen IDEC, Inc.
4/17/2009 3:06 PM
“…Story out early in the week. BIOGEN down 2% today. >> energy prices settled higher across the board, not true for oil for the week. Oil prices covering around $50 a barrel suffered their biggest weekly decline in nearly two …” …more details…
9:32:42 AM BIIB $50.18 Biogen IDEC, Inc.
4/17/2009 9:32 AM
“…Taking from the earnings, first year over year revenue declines since the companies ipo. But the company is cutting costs pretty dramatically there. Let's talk about other stocks. BIOGEN, earnings beat. Reaffirmed the full year guidance. Below expectations. BIOGEN shares were under a little bit of pressure in the pre-market this morning. Keep an eye as well on shares of palm, downgraded over at morgan joseph. …” …more details…
9:04:15 AM BIIB $50.18 Biogen IDEC, Inc.
4/17/2009 9:04 AM
“…Stocks are in the red this morning and opening a touch research in motion and intel which was also the other big story this week with the earnings there. Keep an eye on BIOGEN. They reaffirmed their guidance. Sales of one of the key drugs below expectations there. So that's the headline. Shares today not enough volume …” …more details…
3:47:56 PM BIIB $51.36 Biogen IDEC, Inc.
4/16/2009 3:47 PM
“…Let's sell the companies. We believe there is a perfect marriage here. BIOGEN is a company with a good pipeline as well as the blockbuster drug. So we said that BIOGEN at the right price should be sold. The company gave lip service to that and said we'll put it up for sale but they did a terrible job of trying to …” …more details…
3:47:18 PM BIIB $51.36 Biogen IDEC, Inc.
4/16/2009 3:47 PM
“…Wants representation on the and we welcome that, but we can't talk to them because of >> let me get to BIOGEN. You have a stake in the company as well and you're vocal on how things are going are you really stand on BIOGEN -- the stock is up a third of a percent today. But is something where you'd say i'm going to sell my stake in BIOGEN IDEC if I don't see developments i'd like to see happening? >> we will have a proxy fight there, too, to get representation on the board. …” …more details…
5:30:25 PM BIIB $52.70 Biogen IDEC, Inc.
Fast Money
4/15/2009 5:30 PM
“…You know, I could see if the acquisition speculation were real and this were to become a competitive auction, you might pay a premium to that 60, 65, but who knows? I think BIOGEN's a real company without the takeover stuff. I think the stock should be with a 60 handle right now. They have three or four major drugs. Everybody discounts that. The stock got sold off after the whole takeover stuff got thwarted and nobody's going back to it but BIOGEN's a real company and the bonus is if somebody buys them. >> got to leave it there. Eric schmidt, thanks so much for your time. Coming up next, think the auto trade is dead? …” …more details…
5:29:31 PM BIIB $51.75 Biogen IDEC, Inc.
Fast Money
4/15/2009 5:29 PM
“…We'll see a little data at this upcoming meeting on that. It's called peg avinex. But those are still going to be fairly early stage results. We will see some potential competitors to BIOGEN. We're not too optimistic for those compounds at this stage. >> eric, it's karen. If there were no takeover premium at all, where would the >> I think it's fair to say the …” …more details…
5:29:04 PM BIIB $51.75 Biogen IDEC, Inc.
Fast Money
4/15/2009 5:29 PM
“…25th that goes through may 2nd. Is there data there that would get you very excited as far as the m.S. Drug, as far as the pipeline going forward for >> not necessarily. Right now BIOGEN is the number one m.S. Player. Tysabri. We like the cash flow it's giving investors. They do have one pipeline …” …more details…
5:28:26 PM BIIB $51.75 Biogen IDEC, Inc.
Fast Money
4/15/2009 5:28 PM
“…Or b, no, it's really an macke puts it. Log on to fastmoney.Cnbc.Com, cast your vote. Trade number two, biotech breakthrough. BIOGEN up 7% this year ahead of its earnings release. Will the numbers tomorrow justify this run-up? Eric schmidt, biotech analyst at cowan & company and the top-ranked BIOGEN analyst joins us with his outlook. Great to have you with us. >> thanks, melissa. >> is it justified or is it >> certainly BIOGEN has been benefitting from takeover I think that's well deserved. If there is another mid or large cap biotech name to go it's going to be this one. Of all the stocks we cover this some takeout premium. That said, we're not …” …more details…
5:19:39 PM BIIB $51.75 Biogen IDEC, Inc.
Fast Money
4/15/2009 5:19 PM
“…Here's what's coming up on fms >> will google blast off the top analyst in the internet space gives us the trade. Plus, biotech, could be a booster shot for your portfolio. But not without the side effects. The trade, before BIOGEN earnings. And why are americans shunning new car showrooms to deal with guys like this? >> come on down here, you've got to see these cars. >> when america's post-market …” …more details…
View All Biogen IDEC, Inc. News

Key Fundamentals

BIIB - Biogen IDEC, Incorporated Fundamentals
Price (6/23 4:00PM) $48.73
Volume (6/23 4:00PM) 2.4 Million
Last Close Price $49.10
10 Day Average Volume 2.5 Million
13 Week Price Range $45.50 - $55.34
52 Week Price Range $37.21 - $73.59
LTM Revenue $4.2 Billion
 
Shares Outstanding (12/2008) 288.6 Million
Market Capitalization $14.2 Billion
Shares Held By Institutions 270.0 Million
Institutional Holders 704
% Shares Held By Institutions 93.60%
Earnings Per Share (EPS) $2.65
P/E Ratio 16.70
Book Value Per Share $20.86
 
Gross Margin 93.60%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 0.53
Fiscal Year Ends December

About Biogen IDEC, Inc.

Biogen IDEC, Incorporated is considered to operate in the Healthcare sector. They specifically operate in the Biotechnology business segment contained within the Drugs industry.

A biotechnology company, which is engaged in the discovery, development, manufacturing and commercialization of innovative therapies.

NASDAQ 1764.92

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