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Cambridge, Massachusetts-based Biogen Inc. (BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. With a market cap of $18.4 billion, the company’s products address diseases such as multiple sclerosis, non-hodgkin's lymphoma, rheumatoid arthritis, crohn's disease, and psoriasis.
Shares of this leading biotechnology company have significantly underperformed the broader market over the past year. BIIB has declined 43.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 12.5%. In 2025, BIIB stock is down 15.4%, compared to the SPX’s 1.4% rise on a YTD basis.
Narrowing the focus, BIIB’s underperformance is also apparent compared to the iShares Neuroscience and Healthcare ETF (IBRN). The exchange-traded fund has declined about 6.1% over the past year. Moreover, the ETF’s 12.1% dip on a YTD basis outshine the stock’s losses over the same time frame.
BIIB’s underperformance can be linked to sluggish sales amid rising competitive pressure in the market.
On May 1, BIIB reported its Q1 results, and its shares closed up more than 2% in the following trading session. Its adjusted EPS declined 17.7% year over year to $3.02. The company’s revenue stood at $2.4 billion, up 6.2% year over year.
For the current fiscal year, ending in December, analysts expect BIIB’s EPS to decline 8.8% to $15.02 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 33 analysts covering BIIB stock, the consensus is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and 18 “Holds.”
This configuration is less bullish than two months ago, with 15 analysts suggesting a “Strong Buy.”
On May 14, Citigroup Inc. (C) analyst Geoff Meacham maintained a “Hold” rating on BIIB with a price target of $125.
The mean price target of $170.41 represents a 31.7% premium to BIIB’s current price levels. The Street-high price target of $260 suggests an ambitious upside potential of 100.9%.
