Market Overview

Biogen's Core Business Impresses While Potential Alzheimer's Catalyst Looms

Share:
Biogen's Core Business Impresses While Potential Alzheimer's Catalyst Looms
Related BIIB
Biogen's Best-In-Class R&D Earn Makes It A Buy
5 Biggest Price Target Changes For Tuesday
Trump Likely To Sign Executive Order On Drug Pricing 'Any Day' (Investor's Business Daily)

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

DateFirmActionFromTo
Oct 2017Bank of AmericaMaintainsBuy
Oct 2017MizuhoUpgradesNeutralBuy
Oct 2017Stifel NicolausUpgradesHoldBuy

View More Analyst Ratings for BIIB
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas News Upgrades Price Target Analyst Ratings Movers Best of Benzinga

 

Related Articles (BIIB)

View Comments and Join the Discussion!
Loading...

Partner Center

Loading...