Biogen's $5.6 Billion Acquisition of Apellis Pharmaceuticals Fails to Boost Stock Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Should l Buy BIIB?
Source: Fool
- Acquisition Overview: Biogen announced its agreement to acquire Apellis Pharmaceuticals for $41 per share in cash, totaling approximately $5.6 billion; however, despite a nearly 3% rise in the broader market, Biogen's stock fell over 2%, indicating investor skepticism about the deal.
- Drug Portfolio Insight: Apellis has two FDA-approved treatments, including Syfovre for age-related macular degeneration (AMD) and Empaveli for rare diseases, and Biogen's acquisition aims to enhance its portfolio in immunology and rare diseases, which are critical growth areas.
- Market Reaction Analysis: Although Biogen's CEO stated that the acquisition would bolster the company's growth potential, investor sentiment appears cautious, leading to a decline in stock price even as the market rallied, reflecting doubts about the deal's immediate value.
- Strategic Transformation: Biogen is transitioning from its previous focus on multiple sclerosis to emerging therapeutic areas like Alzheimer's and postpartum depression, and this acquisition underscores its commitment to future growth, despite the negative short-term market reaction.
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Analyst Views on BIIB
Wall Street analysts forecast BIIB stock price to rise
26 Analyst Rating
11 Buy
14 Hold
1 Sell
Moderate Buy
Current: 176.020
Low
143.00
Averages
204.45
High
246.00
Current: 176.020
Low
143.00
Averages
204.45
High
246.00
About BIIB
Biogen Inc. is a global biopharmaceutical company. The Company is focused on discovering, developing, and delivering advanced therapies for people living with serious and complex diseases worldwide. It operates a portfolio of medicines to treat multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer's disease, and amyotrophic lateral sclerosis (ALS). It is focused on advancing its pipeline in neurology, specialized immunology, and rare diseases. Its marketed products include TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI and FAMPYRA for the treatment of MS; SPINRAZA for the treatment of SMA; SKYCLARYS for the treatment of Friedreich's Ataxia; QALSODY for the treatment of ALS, and FUMADERM for the treatment of severe plaque psoriasis. It also collaborations with Eisai on the commercialization of LEQEMBI for the treatment of Alzheimer's disease and Sage on the commercialization of ZURZUVAE for the treatment of Postpartum Depression (PPD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Connectivity Growth: TE Connectivity expects a 26.5% rise in earnings for fiscal 2026, with a 5.3% increase in broker ratings in the last four weeks, indicating strong market demand and competitive advantages in emerging technologies like 5G and electric vehicles.
- Express Delivery Performance: ZTO Express forecasts a 14.6% earnings growth in 2026, bolstered by a 10% upgrade in broker ratings recently, showcasing its leadership in domestic and international express delivery services and ongoing expansion potential.
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See More
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- Weak Financial Performance: Biogen's revenue for 2025 was $9.9 billion, reflecting only a 2% year-over-year increase, while adjusted earnings per share fell by 7% to $15.28, indicating struggles in its multiple sclerosis franchise and competitive pressures in the Alzheimer's market that are limiting sales growth.
- New Drug Growth Drivers: The company's Alzheimer's drug Leqembi has generated $178 million in sales since its approval in 2023, marking a 197% year-over-year increase, and the new label expansions allowing at-home treatment are expected to further enhance market adoption.
- Product Line Expansion: Biogen also received approval for a high-dose formulation of Spinraza, which demonstrated higher efficacy and requires fewer initial doses, strengthening its competitive position, while new products like Skyclarys and Zurzuvae are expected to support future growth.
- Uncertain Outlook: Despite the support from new drugs and label expansions, Biogen anticipates a year-over-year decline in sales for 2026, indicating that older products are still dragging down overall performance, with future growth heavily reliant on successful new drug launches and pipeline candidates.
See More
Biogen's Quarterly Performance Lags, Future Uncertain
- Weak Financial Performance: Biogen's revenue for 2025 was $9.9 billion, reflecting only a 2% year-over-year increase, while adjusted earnings per share fell by 7% to $15.28, indicating significant competitive pressures in its multiple sclerosis and Alzheimer's markets that are hampering sales growth.
- New Drug Potential: Despite challenges, Biogen's Leqembi, approved in 2023, generated $178 million in revenue last year, a remarkable 197% increase year-over-year, suggesting that the new drug's market acceptance is improving and could provide fresh growth momentum for the company.
- Product Line Expansion: Biogen also received approval for a high-dose formulation of Spinraza, which demonstrated higher efficacy in clinical trials, potentially giving it an edge in a competitive market, while newer products like Skyclarys and Zurzuvae could further drive revenue growth.
- Uncertain Future Outlook: Despite new products and label expansions, Biogen anticipates a year-over-year sales decline in 2026, indicating challenges in regaining growth, which necessitates careful risk assessment by investors considering the stock's potential returns.
See More
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- Stock Price Surge: Biogen (BIIB) shares rose after Piper Sandler upgraded the stock from Neutral to Overweight, raising the price target from $174 to $214, reflecting positive market sentiment regarding its acquisition of eye drug developer Apellis Pharmaceuticals (APLS).
- Acquisition Deal: Biogen is set to complete the $5.6 billion acquisition of Apellis in Q2, which will enhance its Alzheimer's drug portfolio, with Apellis' Empaveli and Syfovre projected to generate $689 million in revenue by 2025, filling the revenue gap from the loss of exclusivity on its multiple sclerosis assets.
- Portfolio Integration: Analysts noted that by integrating Empaveli with an advancing immunology pipeline, Biogen is positioned to achieve “meaningful top-line growth” in the future, helping to offset potential declines in royalties linked to the MS therapy Ocrevus.
- Valuation Expansion Outlook: Piper analysts anticipate that Biogen's EV/2026E EBITDA multiple will expand from approximately 11x to 13x, indicating optimistic investor sentiment regarding the company's future growth potential and reflecting confidence in its profitability trajectory.
See More
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- New Drug Revenue: The introduction of Syfovre and Empaveli is expected to fill the revenue gap created by the loss of exclusivity for Ocrevus, indicating that Biogen's market position in multiple sclerosis remains strong.
- Sales Outlook Adjustment: Although Ocrevus's patent is set to expire between 2028 and 2029, potentially impacting sales, analysts believe that the ramp-up of Empaveli and advancements in the immunology pipeline will help Biogen return to meaningful revenue growth.
- Market Performance Analysis: Despite Biogen's stock being flat year-to-date, analysts suggest that the decline in Ocrevus sales will be mitigated by effective lifecycle management, with expectations for multiple expansion from the current enterprise value to EBITDA ratio of approximately 11x.
See More
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