Biogen Inc. (BIIB): A Bull Case Theory

We came across a bullish thesis  on Biogen Inc. on Investing With Purpose’s Substack. In this article, we will summarize the bulls’ thesis on BIIB. Biogen Inc.'s share was trading at $143.81 as of September 18th. BIIB’s trailing and forward P/E were 13.86 and 9.04 respectively according to Yahoo Finance.

Biogen (BIIB) enters its July 31 Q2 earnings with investor focus on the rollout of its Alzheimer’s drug lecanemab and the durability of its multiple sclerosis franchise. Trading below peers despite a net-cash balance sheet and late-stage pipeline, BIIB appears undervalued ahead of a catalyst-driven move. Consensus expects revenue of $2.65 billion (–3% YoY) and EPS of $3.20, with modest beats possible from premium pricing on lecanemab. Recent real-world data showed 25% fewer hospitalizations, fueling optimism for an FDA label expansion and stronger uptake. Meanwhile, Tecfidera® and Tysabri® revenues held steady in Q2, offsetting softer U.S. performance with ex-U.S. growth, though looming patent expirations remain a medium-term risk.

Beyond Alzheimer’s, the pipeline includes SMA follow-ons and synuclein-targeting Parkinson’s therapies, offering multiple shots through 2027. BIIB’s balance sheet strength—$10 billion cash against $6 billion debt—gives it ample runway for R&D, buybacks, or M&A, with persistent takeover chatter adding intrigue. Technically, the stock bounced off $125 support and sits just below the 100-day SMA ($129). Resistance lies near $132–$136, with RSI neutral at ~50 and MACD flat, positioning the stock for a decisive post-earnings swing.

Scenarios point to upside toward $138–$145 on a beat, or downside to $118–$122 if MS sales disappoint. With a starter entry around $128–$130, investors can scale into strength above $132 or add on pullbacks, using tight stops to manage risk. Biogen’s Q2 print may provide the catalyst that unlocks its undervaluation, with favorable Alzheimer’s momentum and resilient franchises skewing risk/reward attractively.

Previously we covered a bullish thesis on Gilead Sciences, Inc. (GILD) by Disruptive Analytics in February 2025, which highlighted near-term revenue headwinds from the Inflation Reduction Act, a strong dollar, and lower COVID-related hospitalizations, while noting the company’s cost discipline and constructive 2026 outlook. The stock has appreciated approximately 9.16% since our coverage. The thesis still stands as Gilead’s earnings power remains resilient. Investing With Purpose shares a similar perspective but emphasizes Biogen’s undervaluation, Alzheimer’s catalyst, and near-term trading setup.

Biogen Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held BIIB at the end of the second quarter which was 52 in the previous quarter. While we acknowledge the potential of BIIB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.