With All Eyes On Lecanemab Read Out In Alzheimer's, Uncertainty Overshadows Biogen's Q2 Beat - Biogen (NASDAQ:BIIB)

Yesterday, Biogen Inc BIIB reported Q2 earnings. Needham writes that while operational performance looked good, uncertainty looms over the company's growth potential.
Lecanemab Phase 3 readout this fall should provide some clarity.
The high-risk, high-reward event will impact the company's medium-term growth prospects.
Needham still sees the base business plus risk-adjusted value of lecanemab as providing upside vs. current stock levels.
It maintains the Buy rating but lowered the price target to $250 from $262.
Wells Fargo says that despite a solid beat and raise, the lack of the CEO search and go-forward strategy, $900 million litigation charge, and the risk to ~$2 billion of Tysabri sales contributed to the downside.
"In our view, lecanemab's Ph3 study would need to be a clean success for CMS to grant coverage, although secondary endpoints on cognitive benefit may be adequate for the FDA," writes Wells Fargo.
"We think CLARITY-AD has 50/50 odds, and we see the stock moving to $350 if the trial is successful," Wells Fargo added.
RBC Capital Markets writes that lecanemab Phase 3 data remains binary, and it continues to see a better-than-appreciated chance of success. Biogen reveals there was no interim analysis.
Pipeline reprioritization should bode well long term.
RBC revises the price target to $259 from $264.
Price Action: BIIB shares are up 2.98% at $213.68 during the market session on the last check Thursday.