Biogen rises 6.81%, closes at $297.30
Biogen Idec (BIIB) has a considerable weight of 3.28% in the Health Care Select Sector SPDR ETF (XLV). BIIB has a market cap of ~$70 billion. The stock closed at $297.30 and gained 6.81% for the period August 25–31, 2015. It outperformed other stocks such as Celgene (CELG), Gilead Sciences (GILD), and Amgen (AMGN), which returned 4.15%, 4.39%, and 2.80%, respectively, for the same period.
The above graph reflects the performance of BIIB, XLV, and REGN on a month-over-month basis. REGN has consistently outperformed both BIIB and XLV. BIIB has been more volatile compared to XLV and BIIB.
Biogen’s highest monthly gain was in January 2015 when it rose ~13.51%. Its worst month was July 2015 when it fell ~21.93%. The stock fell significantly when the company cut its outlook for Tecfidera.
XLV’s biotechnology subgroup average TTM PE (trailing 12-month price-to-earnings) ratio is 24.22x. Forward TTM PE ratio stands at 22.10x. BIIB’s TTM PE ratio is 18.73x, and its forward TTM PE is 16.94x.
Biogen is trading below the industry average. Another important valuation ratio for biotech stocks is PB (price-to-book) value. The average PB value of biotechnology is 12.76x, whereas BIIB is trading at 5.56x. The stock is also trading below its 20-day, 50-day, and 100-day moving averages.
Biogen stock has been on a downward trend ever since the company cut its outlook for Tecfidera. It will be interesting to see how the financials shape up for Biogen in the upcoming days.