Why This Biogen Analyst Is Turning Bullish On Alzheimer's Treatment Prospects

Biogen Inc BIIB has been in focus due to its treatment for early-stage Alzheimer’s disease.

The launch of Leqembi, a treatment to slow the progression of Alzheimer's disease, is likely to begin gaining momentum in 2024, “with robust acceleration anticipated when the SC formulation becomes available,” according to Raymond James.

The Biogen Analyst: Danielle Brill upgraded the rating for Biogen from Market Perform to Outperform, while establishing a price target of $283.

The Biogen Thesis: The Leqembi survey of physicians treating Alzheimer’s suggests that the bottlenecks are gradually easing, and most of the treatment candidates are likely to be treated in the next 12 months or so, Brill said in the upgrade note.

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The analyst added that the U.S. launch of Skyclarys “will continue at its strong pace in 2024 and will be bolstered by approval/launch in the EU early next year.” “BIIB leadership will remain prudent with R&D spend and opex margins will steadily improve moving forward,” he further wrote.

"On a relative basis, we also believe BIIB looks like an attractive long for 2024 as it looks to be trading at an unwarranted discount to some of its large-cap biopharma peers," Brill further stated.

BIIB Price Action: Shares of Biogen were up 1.4% to $237.27 at the time of publication Thursday.

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