Biogen Boost: Bank Of America Upgrades Stock To Buy Ahead Of Alzheimer's Data

In a report published Tuesday, BofA Merrill Lynch analyst Ying Huang upgraded the rating on

from Neutral to Buy, while maintaining the price objective at $466. Biogen is scheduled to report 54-week efficacy data for the 6 mg/kg dose of aducanumab at the upcoming Alzheimer's Association International Conference (AAIC) on July 22. "We believe the 6mg/kg CDR data will show a strong trend or reach statistical significance," analyst Ying Huang said. Huang believes that investor confidence in "the ultimate success of aducanumab" would strengthen if the 6 mg/kg dose showed a decline in CDR "between the 3 mg/kg and 10 mg/kg doses (0.71-1.44 points) demonstrating a clear dose dependent response." The company's US Tecfidera sales fell short of consensus expectations in 1Q15, leading to expectations of a reduced full-year guidance. "Based on IMS scripts in 2Q15, we believe US Tecfidera sales will likely beat consensus of $727M," the BofA Merrill Lynch report mentioned. Huang expects Biogen to either guide to the lower end of its total revenue sales growth range of 14-16 percent or lower the guidance marginally to 13-14 percent. Apart from aducanumab related data, other near-term catalysts that could boost Biogen's shares include "results from a Phase 2 study for Tysabri in acute ischemic stroke (mid 2015), Phase 2 for neublastin in neuropathic pain (mid 2015), and Phase 3 for Tysabri in SPMS (2H2015)," Huang wrote.