Argus Research

03/28/2017 2:50 am EST


Stephen Biggar

Director, Product Strategy, Argus Research Corporation

Insiders at Biogen Inc. (BIIG) have been increasing their holdings through options. Some have been steadily increasing their holdings over the past several years by exercising options and selling only about half of the number of shares acquired through those options. February was an active time for BIIB insiders in this regard.

Biogen is rated BUY at Argus with a target price of $350. Although the shares have faced pressure from slower earnings growth, increased competition, and concerns about pipeline products, we note the company posted strong 4Q16 earnings of $5.04 per share, above the consensus of $4.96. 

Cost savings from the company’s recent workforce reduction, the strong potential of its Alzheimer’s and MS drugs, the launch of Spinraza (for spinal muscular atrophy), the upcoming spinoff of the hemophilia business, and prospects for future acquisitions are other fundamental positives. A buyout of the firm is also a possibility.

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