Biogen Inc. (BIIB): Among the Cheap Healthcare Stocks to Buy Heading Into 2025

In a challenging market environment, investors are seeking opportunities in sectors that offer defensive characteristics and potential for long-term growth. The healthcare sector, particularly biotechnology and pharmaceuticals, has historically provided such opportunities. Among the stocks in this sector that are currently trading at attractive valuations is Biogen Inc. (NASDAQ:BIIB), a biopharmaceutical company focused on neurological and neurodegenerative diseases.

Biogen's current stock price of $151.31 represents a significant discount to its 52-week high of $268.30, and its market capitalization of $220.49 billion suggests that the company is undervalued compared to its peers. The company's P/E ratio of 13.68 and forward P/E ratio of 9.14 indicate that Biogen is trading at a substantial discount to its earnings potential.

One of the primary reasons for Biogen's recent underperformance is the slow adoption of its Alzheimer's disease therapy, Leqembi. The drug, approved by the FDA in June 2023, has faced challenges due to the complex diagnostic process required before patients can access it. However, analysts remain optimistic about the drug's long-term potential, with Michael Yee of Jefferies maintaining a Buy rating and a $250 price target based on encouraging results in Europe.

Biogen's product pipeline also holds significant promise. The company is developing various therapies for neurological and neurodegenerative diseases, including multiple sclerosis, spinal muscular atrophy, and Parkinson's disease. These therapies have the potential to generate substantial revenue and improve patient outcomes.

In addition to its innovative pipeline, Biogen has a strong portfolio of established drugs, such as Tecfidera, Tysabri, and Spinraza, which contribute significantly to the company's revenue. The company's diversified product portfolio and strong pipeline position it well for long-term growth.

Analysts remain bullish on Biogen's prospects, with an average price target of $248.00, representing a 63.90% increase from the current price. The consensus rating is "Buy," with 26 analysts covering the stock.

In conclusion, Biogen Inc. (NASDAQ:BIIB) is among the cheap healthcare stocks to buy heading into 2025. The company's undervalued stock price, strong product pipeline, and diversified portfolio of established drugs make it an attractive investment opportunity in the biotechnology and pharmaceuticals sector. As the healthcare sector continues to offer defensive characteristics and potential for long-term growth, Biogen is well-positioned to benefit from these trends.