Is Biogen Too Cheap to Ignore?
Biogen's (NASDAQ: BIIB) run on the stock market this year has been a roller-coaster ride, to say the least. In March, the company's shares fell off a cliff, decreasing by more than 30% in just a few days. In October, Biogen's stock went in the opposite direction, skyrocketing by 28% during the month. Volatile price movements aside, the biotech company is currently attractively valued, trading at just 10.65 times past and 9.05 times future earnings.
Is Biogen a good value play, or should investors look elsewhere?
Biogen's two massive price movements this year -- in March and in October -- had the exact same cause, namely the company's development of aducanumab to treat Alzheimer's disease (AD). The news in March was that the company was discontinuing its efforts to send aducanumab to the U.S. Food and Drug Administration's (FDA) desk for approval. The reason behind that disappointing bit of news was the fact that aducanumab failed to prove its efficacy during a pivotal phase 3 clinical study.
Source Fool.com
