Investing.com — Piper Sandler lowered Biogen Inc’s (NASDAQ:) ranking from ‘obese’ to ‘impartial’, contemplating a troublesome transition interval for the biotechnology firm. The brokerage raised the value goal to $138 from $315, expressing considerations about Biogen’s near-term income combine and the uphill battle forward to construct its Alzheimer’s franchise.
Biogen is in a troublesome balancing act “with growing its Alzheimer’s illness franchise, an uphill battle in our view, whereas relying closely on immunology-focused R&D, thereby giving itself extra possibilities of producing long-term worth. restoration.”
Biogen’s income stays closely depending on its a number of sclerosis (MS) portfolio, which represents greater than 60% of 2024 income, together with royalties from Ocrevus. Piper Sandler flagged a number of headwinds for MS merchandise, together with competitors from biosimilars and the upcoming lack of exclusivity for key medicine like Tecfidera and Vumerity.
The brokerage additionally questioned the business potential of Biogen’s Alzheimer’s drug Leqembi, regardless of developments corresponding to a subcutaneous auto-injector and ongoing research. “We stay cautious on the AD franchise, with key milestones nonetheless years away,” the be aware stated.
Whereas highlighting the potential of Biogen’s immunology pipeline, notably dapirolizumab pegol for the remedy of lupus, Piper Sandler famous that essential knowledge wouldn’t be obtainable till 2027 or later, leaving a protracted street forward to stabilize earnings.
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