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When $$$MR. MARKET$$$ was younger, he wore a bib:
But then he got older, and so he just decided to make money instead, so he bought stock in BIIB.
That’s right, today I bought stock in BIIB ( Biogen Idec Inc ) at 119.72 per share. I will sell it in 4 to 6 weeks at 138.40. Here’s why I like BIIB:
First of all, look at this amazing chart:
In particular, pay attention to how well it has done since August 2011. In the last 6 months, this stock is up about 50%..that’s almost 10% per month. Its PE is only 24 and its forward PE is only 18. The crazy thing is that Biogen is a 5 billion dollar company. It’s been around and its not going anywhere. In case you’ve never heard of Biogen before, here’s Biogen 101:
Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Its marketed products include the AVONEX for the treatment of relapsing multiple sclerosis (MS); RITUXAN for treating relapsed or refractory, CD20-positive, and B-cell Non-Hodgkin’s lymphoma (NHL); TYSABRI to treat relapsing MS; FUMADERM for the treatment of severe plaque psoriasis in adult patients; and FAMPYRA, an oral compound for the improvement of walking in adult patients with MS with walking disability. Biogen Idec Inc.’s products under Phase III consist of PEGylated interferon beta-1a designed to prolong the effects and reduce the dosing frequency of interferon beta-1a; BG-12 for the treatment of MS; Daclizumab, a monoclonal antibody in relapsing MS; Long-lasting factor IX and VIII fusion protein for the treatment of hemophilia B; GA101, a monoclonal antibody for the treatment of chronic lymphocytic leukemia and NHL; and Dexpramipexole, an orally administered small molecule for the treatment of amyotrophic lateral sclerosis. The company’s Phase I clinical trial products include Anti-LINGO for use in multiple sclerosis, Neublastin for use in neuropathic pain, CD40L for use in systemic lupus erythematosus, ANTI-TWAEK humanized monoclonal antibody for TWEAK, and BIIB037 for use in Alzheimer's disease; and Phase II clinical trial product comprises OCRELIZUMAB, a humanized monoclonal antibody for treating CD20. It has collaboration agreements with Genentech, Inc.; Elan Pharma International, Ltd; Acorda Therapeutics, Inc.; Portola Pharmaceuticals, Inc.; Swedish Orphan Biovitrum AB; Abbott Biotherapeutics Corp; and Vernalis plc. The company was formerly known as IDEC Pharmaceuticals Corporation and changed its name to Biogen Idec Inc. in November 2003. Biogen Idec Inc. was founded in 1985 and is headquartered in Weston, Massachusetts.
Now I have to tell you, the only thing I understood about all of the above is that the company is in Weston, MA. I like going to Weston grill chicken wings and play with Janey.
The bottom line is Biogen is a profitable company with a rich and diverse pipeline. They have the resources, financial strength and vision to successfully discover, develop, manufacture and commercialize new products. 2011 was a year of great accomplishment and 2012 will be a year of great potential. Double digit returns are most certainly in the pipeline as well. Since 2003, revenues have grown by 14% per year on a CAGR basis while earnings have grown 23% per year! What really matters is the pipeline. This is the future and it’s not a one drug wonder in someone’s garage. This is a serious company of serious scale.
Avonex and Tysabri are leading worldwide therapies for multiple sclerosis, while fampyra is the first treatment indicated to improve walking in multiple sclerosis. Think of it this way, if the drugs weren’t terrific, you wouldn’t be seeing this kind of earnings and revenue growth out of BIIB. The great news is that there are several late stage pipeline events waiting to get rolled out that will significantly grow the already robust sales. BIIB is developing a new orally-delivered therapy that could be the most effective treatment yet. It could make Biogen a fortune. It’s called BG-12 and given it receives FDA approval, it could go to market by the end of the year. Right now, the only treatments have to be injected. An oral drug will be HUGE. The drug, could be a first line treatment and help Biogen rake in $2.0 - $3.0 billion in sales in 2015. Their mantra is to “focus on what they do best and on what patients need most”.
However, this is not a one-drug pipeline, by any means. Another promising MS drug is deeper in the pipeline; Biogen Idec shareholders can also look forward to late-stage trial data on compounds to treat ALS and hemophilia, later in 2012, neither of which seems to factor much in analyst models, at this point. With a clarified strategic focus, they plan to deliver on strong commercial and financial performance from their late stage pipeline goodies. While they continue to build a world class, sustainable R&D engine it will yield a premier biotech enterprise.
Biogen is using the substantial cash flow from Avonex and Tysabri to advance these late stage medicines, while rebuilding its early stage program. At the same time, it's returning cash to shareholders through its 20 million share buyback, approved last February. I won’t use my normal math to calculate the future stock price. For these kinds of companies, you can’t look at recent earnings as the basis for what’s going to happen in the future. It’s all about the pipeline. The pipeline is going to double the sales of this company. You don’t have to be $$$MR. MARKET$$$ to know what that will do to its stock price.
Products in the final stages of development consume about half the company’s R&D budget. The company won’t complete the work and see a drop in spending for another 18 months to two years. Biogen plans to hire more salespeople and increase spending to support the introduction of BG-12 in early 2013. So short term earnings growth is not what’s going to drive this stock price. What is it?
Pipeline…pipeline…pipeline.
Here’s what the boss, George Scangos, had to say:
“We continued our transformation of the company and met the goals we set for ourselves at the beginning of 2011. Although we've accomplished a lot so far, we still have a lot to do. In 2012, we'll focus on execution as we invest in our future success, and at the same time, deliver product and EPS growth. I'm confident that we can do this and I'm looking forward to updating you on our progress along the way during the year.”
This big dog is a big bet on biotech but it’s one of the safest bets there is. The good news is that while $$$MR. MARKET$$$ makes money with this pick, some very nice people are feeling better because of the wonderful products that this company brings to market.
I am HUGE!
$$$MR. MARKET$$$
But then he got older, and so he just decided to make money instead, so he bought stock in BIIB.
That’s right, today I bought stock in BIIB ( Biogen Idec Inc ) at 119.72 per share. I will sell it in 4 to 6 weeks at 138.40. Here’s why I like BIIB:
First of all, look at this amazing chart:
In particular, pay attention to how well it has done since August 2011. In the last 6 months, this stock is up about 50%..that’s almost 10% per month. Its PE is only 24 and its forward PE is only 18. The crazy thing is that Biogen is a 5 billion dollar company. It’s been around and its not going anywhere. In case you’ve never heard of Biogen before, here’s Biogen 101:
Biogen Idec Inc. discovers, develops, manufactures, and markets therapies for the treatment of neurodegenerative diseases, hemophilia, and autoimmune disorders in the United States and internationally. Its marketed products include the AVONEX for the treatment of relapsing multiple sclerosis (MS); RITUXAN for treating relapsed or refractory, CD20-positive, and B-cell Non-Hodgkin’s lymphoma (NHL); TYSABRI to treat relapsing MS; FUMADERM for the treatment of severe plaque psoriasis in adult patients; and FAMPYRA, an oral compound for the improvement of walking in adult patients with MS with walking disability. Biogen Idec Inc.’s products under Phase III consist of PEGylated interferon beta-1a designed to prolong the effects and reduce the dosing frequency of interferon beta-1a; BG-12 for the treatment of MS; Daclizumab, a monoclonal antibody in relapsing MS; Long-lasting factor IX and VIII fusion protein for the treatment of hemophilia B; GA101, a monoclonal antibody for the treatment of chronic lymphocytic leukemia and NHL; and Dexpramipexole, an orally administered small molecule for the treatment of amyotrophic lateral sclerosis. The company’s Phase I clinical trial products include Anti-LINGO for use in multiple sclerosis, Neublastin for use in neuropathic pain, CD40L for use in systemic lupus erythematosus, ANTI-TWAEK humanized monoclonal antibody for TWEAK, and BIIB037 for use in Alzheimer's disease; and Phase II clinical trial product comprises OCRELIZUMAB, a humanized monoclonal antibody for treating CD20. It has collaboration agreements with Genentech, Inc.; Elan Pharma International, Ltd; Acorda Therapeutics, Inc.; Portola Pharmaceuticals, Inc.; Swedish Orphan Biovitrum AB; Abbott Biotherapeutics Corp; and Vernalis plc. The company was formerly known as IDEC Pharmaceuticals Corporation and changed its name to Biogen Idec Inc. in November 2003. Biogen Idec Inc. was founded in 1985 and is headquartered in Weston, Massachusetts.
Now I have to tell you, the only thing I understood about all of the above is that the company is in Weston, MA. I like going to Weston grill chicken wings and play with Janey.
The bottom line is Biogen is a profitable company with a rich and diverse pipeline. They have the resources, financial strength and vision to successfully discover, develop, manufacture and commercialize new products. 2011 was a year of great accomplishment and 2012 will be a year of great potential. Double digit returns are most certainly in the pipeline as well. Since 2003, revenues have grown by 14% per year on a CAGR basis while earnings have grown 23% per year! What really matters is the pipeline. This is the future and it’s not a one drug wonder in someone’s garage. This is a serious company of serious scale.
Avonex and Tysabri are leading worldwide therapies for multiple sclerosis, while fampyra is the first treatment indicated to improve walking in multiple sclerosis. Think of it this way, if the drugs weren’t terrific, you wouldn’t be seeing this kind of earnings and revenue growth out of BIIB. The great news is that there are several late stage pipeline events waiting to get rolled out that will significantly grow the already robust sales. BIIB is developing a new orally-delivered therapy that could be the most effective treatment yet. It could make Biogen a fortune. It’s called BG-12 and given it receives FDA approval, it could go to market by the end of the year. Right now, the only treatments have to be injected. An oral drug will be HUGE. The drug, could be a first line treatment and help Biogen rake in $2.0 - $3.0 billion in sales in 2015. Their mantra is to “focus on what they do best and on what patients need most”.
However, this is not a one-drug pipeline, by any means. Another promising MS drug is deeper in the pipeline; Biogen Idec shareholders can also look forward to late-stage trial data on compounds to treat ALS and hemophilia, later in 2012, neither of which seems to factor much in analyst models, at this point. With a clarified strategic focus, they plan to deliver on strong commercial and financial performance from their late stage pipeline goodies. While they continue to build a world class, sustainable R&D engine it will yield a premier biotech enterprise.
Biogen is using the substantial cash flow from Avonex and Tysabri to advance these late stage medicines, while rebuilding its early stage program. At the same time, it's returning cash to shareholders through its 20 million share buyback, approved last February. I won’t use my normal math to calculate the future stock price. For these kinds of companies, you can’t look at recent earnings as the basis for what’s going to happen in the future. It’s all about the pipeline. The pipeline is going to double the sales of this company. You don’t have to be $$$MR. MARKET$$$ to know what that will do to its stock price.
Products in the final stages of development consume about half the company’s R&D budget. The company won’t complete the work and see a drop in spending for another 18 months to two years. Biogen plans to hire more salespeople and increase spending to support the introduction of BG-12 in early 2013. So short term earnings growth is not what’s going to drive this stock price. What is it?
Pipeline…pipeline…pipeline.
Here’s what the boss, George Scangos, had to say:
“We continued our transformation of the company and met the goals we set for ourselves at the beginning of 2011. Although we've accomplished a lot so far, we still have a lot to do. In 2012, we'll focus on execution as we invest in our future success, and at the same time, deliver product and EPS growth. I'm confident that we can do this and I'm looking forward to updating you on our progress along the way during the year.”
This big dog is a big bet on biotech but it’s one of the safest bets there is. The good news is that while $$$MR. MARKET$$$ makes money with this pick, some very nice people are feeling better because of the wonderful products that this company brings to market.
I am HUGE!
$$$MR. MARKET$$$
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