J.P. Morgan Maintains Neutral On Biogen Idec Following MS Data

J.P. Morgan Chase & Co. is maintaining its Neutral rating on shares of Biogen Idec BIIB. In a note to clients, J.P. Morgan Chase & Co. writes, "This morning Sanofi (Covered by JPM European Healthcare analyst Alexandra Hauber) announced top-line data from the phase 3 CARE-MS 1 trial of Lemtrada (alemtuzumab) in treatment naïve multiple sclerosis (MS). In the study, Lemtrada met the primary endpoint demonstrating a 55% reduction in annualized relapse rate (ARR) compared to Rebif (p<0.0001). Compared to the phase 2 trial, the efficacy appears less robust (55% vs. 72% relapse rate reduction compared to Rebif in phase 2), while surprisingly the safety profile seems to be better. In our view, Lemtrada could be competitive in the MS space but we await further data details (ECTRIMS; Oct 9-22) and data from the second phase 3 CARE-MS 2 trial (treatment experienced) in 4Q11 to gain greater clarity on its profile. Having a dominating position in the MS space, Biogen has the most to lose, in our view, particularly to its Avonex and Tysabri franchises, though BG-12 may offset some competitive pressure. We reiterate our Neutral rating on BIIB shares." Shares of BIIB are down $2.24 to $105.15, a loss of 2.1%.