Biogen's Core Business Impresses While Potential Alzheimer's Catalyst Looms
Analysts at Morgan Stanley turned bullish on Biogen Inc (NASDAQ: BIIB) as the company's phase 3 Alzheimer's catalyst could "make all its potential issues disappear." The firm's Matthew Harrison upgraded Biogen's stock rating from Equal-Weight to Overweight with a price target boosted from $311 to $375 (see Harrison's track record here).
Biogen has multiple therapies to treat Alzheimer's in its pipeline, including a lead candidate called Aducanumab which is currently undergoing a phase 3 trial, Harrison commented in his upgrade note. Expectations are calling for a readout of the trial in late 2019 or early 2020, but an Alzheimer's related catalyst could come sooner in a phase 1b follow-up at CTAD in November.
Beyond Alzheimer's, Biogen's SMA drug Spinraza realized the best launch of any orphan asset with $300 million in sales in just the first two quarters after launch, Harrison continued. The therapy could realize peak sales of $4 billion and the therapy could boost the company's topline growth rate by 3 to 4 percent. This would imply that Biogen will be a "mid-single digit percent grower" heading into the key catalyst of Alzheimer's data releases.
Aside from the company's therapies, Biogen's "strong" balance sheet could fund additional M&A activity, the analyst concluded. These forms of business development could prove to be a way for management to "supercharge growth."
At time of publication, shares of Biogen were up 3.67 percent at $326.48.
Related Links:
Biogen Spinoff Bioverativ Is A Buy
19% Upside Predicted For Biogen, Goldman Upgrades On Strength Of Alzheimer's Drug
Latest Ratings for BIIB
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Stifel | Downgrades | Buy | Hold |
Mar 2022 | RBC Capital | Upgrades | Sector Perform | Outperform |
Feb 2022 | Canaccord Genuity | Maintains | Buy |
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Analyst Color Biotech Long Ideas News Upgrades Price Target Analyst Ratings Movers Best of Benzinga