Is Biogen Inc. (BIIB) One of the Best Biotech Stocks to Invest In According to Billionaire Steve Cohen?

Why It Matters

Securing China rights gives Biogen a foothold in the world’s largest biotech market and diversifies its pipeline beyond neurology, potentially unlocking a new revenue stream if the drug gains approval.

Key Takeaways

• Biogen pays up to $850M for China rights to felzartamab.
• $100M upfront; $750M in milestones and royalties.
• Felzartamab targets IgA nephropathy and membranous nephropathy.
• China regulator also reviewing drug for multiple myeloma.
• Deal expands Biogen's China footprint after $1.8B acquisition.

Pulse Analysis

Biogen’s latest partnership with TJ Biopharma marks a decisive push into China, a market that accounts for roughly 15% of global biotech sales. By securing exclusive rights to felzartamab, the company can control manufacturing and commercialization, leveraging local expertise while tapping into a patient base of millions with chronic kidney disease. The $850 million package—front‑loaded with a $100 million cash advance—reflects the premium investors place on access to China’s fast‑growing healthcare ecosystem.

Felzartamab’s clinical profile adds depth to Biogen’s pipeline, which has traditionally centered on neurological disorders. Late‑stage trials show promise for IgA nephropathy and primary membranous nephropathy, two renal conditions lacking effective therapies and representing a multi‑billion‑dollar market worldwide. Simultaneously, Chinese regulators are evaluating the drug for multiple myeloma, a high‑incidence blood cancer, potentially widening its therapeutic scope and accelerating revenue timelines if approvals align across indications.

From an investor standpoint, the deal offers a dual‑track upside: immediate milestone revenue if development milestones are met, and long‑term royalty streams from Chinese sales. While some analysts argue AI‑focused stocks may deliver faster returns, Biogen’s strategic diversification into renal therapeutics and the China market provides a more stable growth narrative. The partnership also underscores a broader industry trend of Western biotech firms seeking localized rights to navigate regulatory pathways and capture market share in Asia’s expanding pharma landscape.