Biogen Update: Bioverativ Spinoff….

Just a heads up for readers: today Biogen spun off its hemophilia unit — Bioverativ. Given the revenues that Bioverativ generated, the marketplace adjusts the parent company stock price to reflect the spin off. Hence, while Biogen’s price is significantly lower today, the net change is reported as positive to reflect the distribution of Bioverativ shares to shareholders. Add in Bioverativ’s share price of about $44 and consider that for each two shares of Biogen held, you receive one Bioverativ share… and the stock actually did okay. Our buy targets for the ISAW personal portfolio were set knowing this spin off was to occur. The drop was in line with estimates according to RBC analyst Michael Yee.

Another analyst also made negative comments saying that Biogen is behind Merck and Astra Zeneca in BACE inhibitors for Alzheimer’s Disease. While this may be true, Biogen is still ahead in the race to develop antibodies to combat Alzheimer’s. Both races are far from over. Stay tuned!

Subscribers – see February issue for more details on Biogen.

Non subscribers can subscribe here.

Leave a Reply