Analyst Salim Syed from Mizuho Securities assigned a Buy rating on Biogen (BIIB – Research Report) and keeping the price target at $277.00.
Salim Syed has given his Buy rating due to a combination of factors that suggest a positive outlook for Biogen. The promising performance of new drug launches, specifically Leqembi and Skyclarys, is central to his assessment. The quarter-over-quarter acceleration in Leqembi sales indicates a robust uptake as more treatment sites are operational, hinting at sustainable revenue growth. Additionally, the approval of Leqembi in China and its launch in Japan present opportunities for international market expansion. Syed also highlights the company’s effective cost management and the absence of idle capacity charges in the first quarter of 2024, which implies an increase in production and potential revenue boosts in subsequent quarters.
Furthermore, Biogen’s strategic moves to file for Fast Track Designation for subcutaneous Leqembi and the anticipation of immunogenicity data by the fourth quarter of 2024 support the potential for continued development and market penetration. The minimal discontinuation rates and proactive communication with patients further strengthen the case for sustained drug adherence. Syed also notes the expected increase in sales and marketing costs as a natural progression of drug launch maturation. All these factors, combined with Biogen’s clear trajectory for Skyclarys and its ongoing efforts to expand patient reach, contribute to a strong case for a Buy rating on Biogen’s stock.
Syed covers the Healthcare sector, focusing on stocks such as Cytokinetics, Crispr Therapeutics AG, and Gilead Sciences. According to TipRanks, Syed has an average return of -6.2% and a 36.69% success rate on recommended stocks.
In another report released yesterday, Scotiabank also maintained a Buy rating on the stock with a $275.00 price target.
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Biogen (BIIB) Company Description:
Incorporated in 1978, Massachusetts-based Biogen, Inc. is a biopharmaceutical company, which discovers, develops, and delivers therapies for the treatment of neurological and neurodegenerative diseases. It offers TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, VUMERITY, and FAMPYRA for the treatment of multiple sclerosis; SPINRAZA for the treatment of spinal muscular atrophy; and FUMADERM for the treatment of severe plaque psoriasis.
