With All Eyes On Lecanemab Read Out In Alzheimer's, Uncertainty Overshadows Biogen's Q2 Beat

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.

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