Biogen Idec (BIIB) posted solid results in the second quarter of 2009, despite the slowdown in Tysabri sales due to fears of PML. We think the Biogen core business will remain strong over the next several quarters.
Tysabri prescriptions are showing improvement and we believe will resume their previous pace shortly. In the meantime, the name is significantly under-valued and would be a very attractive takeout candidate for a large-cap pharmaceutical company looking for a great phase III pipeline. We expect 2009 to be an eventful year on the pipeline front.
As investors become more comfortable with both Tysabri trends and emerging pipeline, we believe shares will recover back into the low $60’s. At today’s price, the name is too attractive to ignore.Zacks Investment Research
