On Monday, Biogen Inc. (NASDAQ:BIIB) shares edged higher 1% after Teva Pharmaceutical Industries Ltd (TLV:TEVA) settled the Vumerity lawsuit. The lawsuit claimed that Teva’s proposed generic version of Vumerity would violate three Alkermes Plc (NASDAQ:ALKS) patents for the multiple sclerosis drug.
The Ireland-based biotechnology company sells those patents to Biogen. The companies did not disclose the details of the settlement made on Friday in a Delaware federal court.
Biogen shares have been down more than 30% since 10th June amid concerns about its Alzheimer’s drug Aduhelm, despite receiving an updated approval from the FDA in July. However, the stock is still up nearly 19% this year.
Is Biogen still a good buy?
From an investment perspective, Biogen shares an attractive trailing 12-month P/E of 22.93 and a forward P/E of 13.84, making the stock an exciting option for value investors.
However, analysts expect BIIB earnings per share to fall by more than 21% this year before registering an average annual decline of about 7.65% over the next five years. Therefore, the stock may not be appealing to growth investors.
Nonetheless, with shares still down more than 30% since 10th June, investors could target short-term profit opportunities triggered by the recent announcements.
Can the rebound continue?
Technically, Biogen shares appear to have recently bounced off the trendline support after falling below the 100-day moving average. As a result, the stock has recovered from oversold conditions to surge towards the trendline resistance.
However, with shares far from reaching overbought conditions, the current rebound seems poised to continue. Therefore, investors could target extended gains at about $319.85 or higher at $352.67.
