Skip to main content

Market Overview

BMO: Biogen's Risks Quickly Becoming Priced In, But This May Not Be The Bottom

BMO: Biogen's Risks Quickly Becoming Priced In, But This May Not Be The Bottom

BMO Capital Markets isn't calling the bottom on Biogen Inc (NASDAQ: BIIB) despite the risk to its MS franchise and Spinraza getting priced in.

With Biogen's MS franchise thesis playing out, BMO upgraded shares of the company from Market Perform to Outperform and lowered its price target from $382 to $381. 

Analyst Ian Somaiya said his upgrade is based on expectations for investor focus to once again shift to Biogen's Alzheimer's treatment candidate aducanumab, with positive updates at the Clinical Trials On Alzheimer's Disease conference, scheduled for Nov. 1-4, and BAN2401 data, due in the fourth quarter of 2017, supporting positive Phase 3 data. Aducanumab may succeed where other amyloid beta-targeting drugs have failed, Somaiya said in a Tuesday note. (See Somaiya's track record here.) 

Third-quarter revenues exceeded expectations, thanks to Spinraza sales, excluding the U.S., the analyst said. BMO projects a rapid uptake of Spinraza outside of the U.S. and maintenance dosing in the U.S. to drive growth in 2018.

The Street nmustaccount for the potential launch of AveXis Inc (NASDAQ: AVXS)'s AVXS-101 in 2018, Somaiya said. BMO projects below-consensus MS franchise sales, factoring in the launch of Celgene Corporation (NASDAQ: CELG)'s ozanimod and generic Gilenya.

Amendments to aducanumab-associated deals with Eisai and Neurimmune signal confidence in the Phase 3 outcome, Somaiya said. 

"We have adjusted our model to take into account higher share of aducanumab profits in the U.S. and Europe and partner Eisai sharing 45 percent of costs starting in 2019 as well as lower royalties to Neurimmune." 

This, according to BMO, offsets lower MS sales, in particular Tecfidera, and prompted its price target reduction.

Related Links:

Attention Biotech Investors, Here's Your PDUFA Primer For October

Life (Science) Lessons: The Hows And Whos To Play Biotech

Latest Ratings for BIIB

Apr 2021WedbushMaintainsNeutral
Feb 2021Cantor FitzgeraldMaintainsNeutral
Feb 2021Credit SuisseMaintainsOutperform

View More Analyst Ratings for BIIB
View the Latest Analyst Ratings


Related Articles (BIIB)

View Comments and Join the Discussion!

Posted-In: Biogen BMO Capital MarketsAnalyst Color Upgrades Health Care Price Target Analyst Ratings General Best of Benzinga

Latest Ratings

MRNAPiper SandlerReiterates234.0
SAIARaymond JamesMaintains250.0
UNPRaymond JamesMaintains255.0
CSXRaymond JamesMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at