Jefferies downgraded Biogen Inc BIIB, citing the corporate’s robust setup.
Leqembi (lecanemab) gross sales progress stays sluggish, falling under consensus projections via 2030.
Challenges like PET scan reimbursement, gradual protocol updates at main hospital networks, and figuring out eligible sufferers proceed to hinder adoption.
The analyst sees restricted draw back at present valuations and notes that continued pipeline progress, regulatory approvals, and a profitable lecanemab launch may push the inventory to round $350.
Additionally Learn: Biogen Positive aspects Momentum With Constructive Lupus Drug Outcomes, Analyst Sees Modest Valuation Upside
Moreover, Jefferies writes that strategic choices, notably amid the CEO transition, present a security web if the inventory drops to about $175.
Biogen acknowledges these obstacles fluctuate by hospital or workplace, including complexity to addressing them and setting clear timelines for decision.
In the meantime, Eli Lilly And Co’s LLY newly launched Kisunla (donanemab) is performing effectively, together with some preliminary stock stocking.
Jefferies downgraded Biogen from Purchase to Maintain with a worth goal of $180, down from $250.
The analyst highlights an absence of thrilling new developments to draw investor curiosity. Analysts famous that whereas Biogen has $7-10 billion in capability for enterprise offers, these efforts will take time to materialize.
Moreover, they highlighted a big danger in 2030, when royalties from Ocrevus—presently value $1.5 billion yearly—are anticipated to drop by greater than 50% because of the FDA approval of biosimilars. This discount may minimize Biogen’s earnings per share by 20-30%.
Jefferies writes the corporate might search to amass “tuck-in” specialty business areas.
Biogen confronted a number of pipeline setbacks in 2024, together with packages for ALS, tremor, and Angelman syndrome.
Two promising late-stage packages, felzartamab coming into Section 3 trials for IgA nephropathy and dapi beginning a second Section 3 trial for lupus, present potential.
Nonetheless, their outcomes are years away (anticipated in 2027-2029), and each goal extremely aggressive markets. As such, these medication are unlikely to deal with considerations about Biogen’s earnings progress between 2025 and 2030.
Value Motion: BIIB inventory is up 0.18% at $158.06 eventually verify Monday.
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