Biogen to invest $2 billion in North Carolina manufacturing expansion

CAMBRIDGE, Mass. - Biogen Inc. (NASDAQ:BIIB), a prominent biotechnology company with annual revenue of $9.8 billion and currently trading below its InvestingPro Fair Value, announced Monday plans to invest an additional $2 billion in its manufacturing facilities at North Carolina’s Research Triangle Park (RTP), building on approximately $10 billion the company has already invested in the region since 1995.

The new investment will support Biogen’s late-stage clinical pipeline through expansion of antisense oligonucleotide capabilities, establishment of multi-platform fill finish capabilities, and modernization of manufacturing technologies through advanced automation and artificial intelligence. With a healthy EBITDA of $3.1 billion and strong cash flows, the company appears well-positioned to fund this expansion.

"Our manufacturing footprint in the United States has played a critical role in Biogen’s history and success," said Nicole Murphy, Head of Pharmaceutical Operations and Technology at Biogen, according to the company’s press release.

The RTP location represents Biogen’s largest manufacturing footprint globally, with seven manufacturing factories across multiple modalities. An eighth factory is currently under construction and expected to be operational in the second half of 2025.

Biogen employs over 1,500 manufacturing and technical employees in North Carolina, plus more than 400 skilled contractors across its Wake County and Durham County campuses. The company states that more than 90% of its innovator commercial medicines have manufacturing and quality control testing in the U.S.

The biotechnology company’s global manufacturing strategy focuses on ensuring resilient patient supply through geographical risk diversification and dual sourcing. Outside the United States, Biogen maintains a smaller manufacturing presence with one biologics factory in Switzerland and is consolidating certain fill finish capabilities at a site in Ireland.

Founded in 1978, Biogen develops treatments across multiple therapeutic areas and modalities. The company maintains a robust gross profit margin of 76% and receives a "GOOD" financial health score from InvestingPro, which offers comprehensive analysis and additional insights through its detailed Pro Research Report, available for over 1,400 US stocks. The information in this article is based on a company press release.

In other recent news, Biogen has reported several notable developments. The company announced its second-quarter earnings projections, with JPMorgan forecasting sales of $2.4 billion and earnings per share of $4.02, aligning with consensus estimates. Additionally, Biogen has initiated a Phase 3 trial for felzartamab, targeting primary membranous nephropathy, a rare kidney disease, with results expected in 2029. In the realm of spinal muscular atrophy (SMA), Biogen shared positive interim data for salanersen, showing promising outcomes in children previously treated with gene therapy. This treatment, administered once yearly, demonstrated substantial reductions in neurofilament levels and improvements in motor functions.

Biogen’s Alzheimer’s treatment, Leqembi, remains a focal point, with RBC Capital expressing confidence in its potential acceleration next year. UBS, however, raised its price target for Biogen to $130 but maintained a Neutral rating, citing skepticism about the commercial market opportunity for presymptomatic Alzheimer’s treatment. Meanwhile, RBC Capital reiterated its Outperform rating with a price target of $208, highlighting Biogen’s potential near-term catalysts in immunology and inflammation. These recent developments reflect Biogen’s ongoing efforts in advancing its treatment portfolio and its strategic positioning in the market.

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