Business Units or Product Lines

Biogen Inc. operates primarily in a few key segments: Multiple Sclerosis and Neuroimmunology, Alzheimer's Disease and Dementia, Neuromuscular Disorders, Ophthalmology, and Biosimilars.

Business Models for Each Product Line

For Multiple Sclerosis and Neuroimmunology, Biogen generates revenue through the sale of drugs like Tysabri and Tecfidera. The Alzheimer's Disease segment focuses on Aduhelm sales. The Neuromuscular Disorders segment includes Spinraza for spinal muscular atrophy. Revenue in these segments primarily comes from drug sales. Major expenses include R&D, manufacturing, marketing, and sales expenses. The Ophthalmology unit is less mature but involves similar revenue streams and costs. The Biosimilars segment provides revenue through less expensive versions of biologic drugs, with manufacturing and regulatory compliance as key expense areas.

Future Opportunities for Growth

Biogen has significant growth opportunities in developing treatments for neurological diseases, particularly Alzheimer's, as population ages. The expansion of biosimilars and further global market penetration, especially in emerging markets, are also seen as key avenues for growth. Collaborative R&D and strategic acquisitions of biotech startups may also fuel future growth.

Potential Major Risks

Key risks include heavy reliance on certain drugs like Aduhelm and potential regulatory and patent challenges. Increased competition in the MS market, high R&D costs with uncertain outcomes, and pricing pressure from healthcare payers are crucial risks. Additionally, any failure in new drug approvals, particularly for Alzheimer’s, could impact growth significantly.