Introduction

Biogen(BIIB) is a global biopharmaceutical company focused on discovering, developing and delivering innovative therapies for people living with serious and complex diseases worldwide. Biogen(BIIB) have a broad portfolio of medicines to treat multiple sclerosis (MS), have introduced the first approved treatment for spinal muscular atrophy (SMA) and co-developed two treatments to address a defining pathology of Alzheimer’s disease. Biogen(BIIB) are focused on advancing our pipeline in neurology, neuropsychiatry, specialized immunology and rare diseases. Biogen(BIIB) support our drug discovery and development efforts through internal research and development programs and external collaborations.

Profitability analysis

Biogen ’s revenue was $10.17 billion, $10.98 billion and $13.44 billion for 2022,for 2021 and for 2020, respectively.

Biogen(BIIB) reported net income of $2.96 billion, $1.72 billion and $4 billion in 2022,in 2021 and in 2020,respectively.

The net profit margin was 29.1%, 15.66% and 29.7% in 2022,in 2021 and in 2020,respectively.

Its gross margin was 77.6%,80.8% and 86.6% in 2022,in 2021 and in 2020,respectively.

Total equity was $13.38 billion and $10.95 billion in 2022 and in 2021,respectively.

The return on equity was 22.1% and 15.7% in 2022 and in 2021,respectively.

However, Biogen’s quality of earnings was not high in 2022 ,because Biogen has only $1.38 billion in net cash flow provided by operating activities.  Net cash flow provided by operating activities was $3.63 billion and $4.22 billion in 2021 and in 2020. We could see that net cash provided by operating activities in 2022 is lower than in 2021 and in 2020.

Assets management efficiency

Accounts receivable turnover was 6.25 times and days sale outstanding was 58.4 days in 2022.

Inventory turnover was 1.68 times and days inventory held was 217 days in 2022.

Accounts payable turnover was 4.21 times and days payable outstanding  was 86.7 days in 2022.

Cash conversion is 188.7 days.

Asset structure analysis

Total assets were $24.5 billion in 2022, compared with $23.8 billion in 2021.

Goodwill was $5.7 billon in 2022,which has 23.2% of total assets.

Total current assets were approximately $9.8 billion in 2022,which account for 40%.

Property, plant and equipment was about $3.3 billion in 2022, which consist of 13.46% of total assets.

Intangible assets, net were $1.85 billion in 2022,which has 7.5% of total assets. 

Liquidity and solvency analysis

The current ratio was about 3:1, which show that the current could cover current liabilities 3 times in 2022.

The debt ratio was 45.5% in 2022,together with the generating cash flow, and we think Biogen(BIIB)’s debt pressure is not high.

Cash flow analysis

Purchase of treasury stock was $7.5 billion ,$1.8 billion and $6.68 billion in 2022,in 2021 and in 2020,respectively.

Biogen like purchasing stocks and don’t like paying dividends to shareholders.

Biogen’s performance results for Q3 2023

Biogen（BIIB）reported total revenue of $7.5 billion ,$7.6 billion in the nine months to ended September 30,2023 and in the months to ended September 30,2022.

Net cash flow provided by operating activities was $1.53 billion and $1.56 billion in the months ended September 30,2023 and in the months ended September 30,2022. Its cash flow is very stable.

Summary

We reckon the company is worth $25billion or $172 per share.