Stockchase Opinions

Jim Cramer - Mad Money Biogen IDEC Inc. BIIB-Q COMMENT Nov 27, 2023

They haven't launched their weight-loss drug yet, but the company's expects something big from it next year. The problem is that BIIB is lumped in with the general drug group.

$228.870

Stock price when the opinion was issued

biotechnology pharmaceutical
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly BIIB has been on a roller-coaster. When the FDA announced a priority review of a new Alzheimer's drug, it stock soared to $360. When the review failed to approve the drug in the first go-round, the stock plunged to under $250 -- so it goes with drug manufacturers. Its MS drugs continue to do well and it is working on treatments for Parkinson's disease as well. Trading at 8x earnings, it is cheap compared to peers at 30x. We would buy this with a $180 stop-loss looking to achieve $305 -- 26% upside. Yield 0%. (Analysts’ price target is $305.90)

DON'T BUY
Very high risk, very high reward. Seeing competition on its core drugs. Its Alzheimer's drug didn't get a great reception. Somewhere around June 7 the regulator will rule on this drug. Could be impacted 30% up or 50% down. Not for him.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Nov 26/20, Up 26.1%)Stochchase Research Editor: Michael O'Reilly Our PAST TOP PICK with CIEN has gapped up through the $305 target. To be disciplined, we recommend trailing up the stop (from $180) to $305. If triggered, this would all but guarantee a minimum investment return over 26%.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 26/20, Up 43%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BIIB is progressing well. We now recommend trailing up the stop (from $305) to $320. If triggered this would all but guarantee a investment return over 29%, when including the previous recommendation to cover half.
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Nov 26/20, Up 32.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with BIIB has triggered its stop at $320. We recommend covering the position at this time. We will look for another entry point when value is justified again.
DON'T BUY
They own almost nothing in the Health Care space and Biotech is particularly weak.
BUY

The FDA figure who was key in getting their Alzheimer's drug recently left the FDA, but all the Alzheimer's plays declined except Biogen.

BUY

A great stock that whose Alzheimer drug will do well. (See also Eli Lilly.) Shares bounced along, but now picked up momentum.

DON'T BUY

Not impressed with products. Competitors out performing.