Biogen Idec Deeply Undervalued

Biogen Idec Inc. (BIIB - Analyst Report) posted solid results in the third quarter of 2008, 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, and that Tysabri prescriptions will resume their previous pace shortly.

In the meantime, the name is significantly undervalued 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 Biogen's emerging pipeline, we believe shares will recover back into the high $50's. At today's price, the name is too attractive to ignore.

Read the full analyst report on BIIB.

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