Biogen’s plan to sell stake in Samsung Bioepis is “a step in the right direction” - BofA
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Biogen (NASDAQ:BIIB) is trading flat in the pre-market despite its announcement after the close Thursday on the agreement with Samsung Biologics to sell its ownership in the joint venture Samsung Bioepis for up to $2.3B.

Commenting on the move, Bank of America analysts led by Geoff Meacham argue that the deal âmakes both financial and strategic sense,â and the investors should welcome the news.

Despite being a solid component of financials, the unit suffered from low margins and modest growth, they point out adding, it did not align very well strategically with the companyâs base business in neurology.
In addition to giving more leeway to address certain near-term concerns, the sale will strengthen the balance sheet and improve managementâs focus.
However, âwe question whether it is enough to help right the ship,â the analysts wrote, noting that the funds are âarguably well-belowâ the level required for deals with the potential to meet the companyâs more near-term shortfalls in revenue and earnings. Meacham and the team maintain the Neutral rating and $245 per share target on Biogen (BIIB).
Read: Goldman Sachs has reportedly suggested several companies to Biogen (BIIB) as potential candidates for acquisitions.