Biogen Idec
Biogen Idec (BIIB) is one of those volatile biotech stocks that you’ve been hearing about in 2014. BIIB stock is, in fact, down about 15% from its March highs.
But unlike some of the other stocks in the space that have crashed and burned, don’t confuse Biogen Idec with an unprofitable start-up that is praying for an FDA approval or racing through uncertain drug trials. Biogen has developed autoimmune drugs, and some of these core products have been approved and in use for about 20 years. Its biggest blockbuster, Avonex, treats multiple sclerosis and racks up $3 billion in sales annually.
Looking forward, Biogen Idec regularly wins accolades for its innovative research and quest to tackle diseases that currently don’t have effective treatment options. It’s as much of a tech company as a healthcare stock in many respects, experimenting with gene therapies and other cutting-edge medical technology.
BIIB stock doesn’t offer a dividend like other healthcare players, since it plows its capital into aggressive research. But given its past successes, strong current balance sheet and big hopes for future growth, Biogen Idec is a much more attractive and low-risk play than it may seem.
After all, a highly profitable company with $7 billion in annual sales and a $65 billion market cap hardly fits the description of a high-risk biotech fad.
