Skip to main content

Market Overview

Raymond James: Biogen's Business Appears Fragile, Faces Many Headwinds

Share:
Raymond James: Biogen's Business Appears Fragile, Faces Many Headwinds

Last month, Biogen Inc (NASDAQ: BIIB) halted Phase 3 trials for aducanumab in March based on results of a futility analysis conducted by an independent data monitoring committee.

While the remaining business is not busted, it does seem fragile, with the company facing headwinds in both multiple sclerosis and spinal muscular atrophy, according to Raymond James.

The Analyst

Raymond James’ Steven Seedhouse resumed coverage of Biogen with a Market Perform rating.

The Thesis

Biogen’s MS franchise is facing several risks, including new launches like Celgene Corporation (NASDAQ: CELG)'s ozanimod;  Novartis AG (NYSE: NVS)'s Mayzent; Merck's Mavenclad; a pending IPR decision on Biogen's Tecfidera IP and pricing that's subject to intense political pressure in the U.S., Seedhouse said in a Tuesday note. 

In the spinal muscular atrophy arena, the annual sales of Spinraza have already peaked, with market share remaining flat and the dosing mix shifting from loading to maintenance, the analyst said. The latter signifies a massive cut in the gross price, from $750,000 to $375,000 per year per patient, he said. 

Spinraza sales will be further impacted by the launches of Zolgesma by Novartis and risdiplam by Roche Holding and PTC Therapeutics, Inc. (NASDAQ: PTCT), Seedhouse said. 

Biogen seems to understand the challenges ahead “to retool the business outlook and growth prospects in a stepwise manner,” the analyst said. 

Price Action

Biogen shares were trading down 0.13 percent at $237.28 at the time of publication Wednesday. 

Related Links:

The Daily Biotech Pulse: Safety Board Clears Eisai's Alzheimer's Study, Positive Trial Results For Galapagos-Gilead

6 Gene Therapy M&A Targets On The Radar

Latest Ratings for BIIB

DateFirmActionFromTo
Jun 2021Piper SandlerUpgradesNeutralOverweight
Jun 2021Goldman SachsMaintainsNeutral
Jun 2021Truist SecuritiesMaintainsBuy

View More Analyst Ratings for BIIB
View the Latest Analyst Ratings

 

Related Articles (BIIB)

View Comments and Join the Discussion!

Posted-In: Raymond James Steven SeedhouseAnalyst Color Biotech Initiation Analyst Ratings General Best of Benzinga

Latest Ratings

StockFirmActionPT
SPFRLake StreetInitiates Coverage On13.0
SHSPLake StreetDowngrades
RDS/ASociete GeneraleUpgrades
JRSHAegis CapitalMaintains9.0
TSMArgus ResearchInitiates Coverage On150.0
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.
SPAC
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 vipaccounts@benzinga.com