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Goldman Sachs analysts upgraded Biogen (NASDAQ:BIIB) to Buy from Neutral, raising the firm’s price target on the stock to $370 from $271 in a note Wednesday. It is the sixth upgrade of Biogen since September 15, 2022.
The analysts said that in conjunction with earnings, the firm decided to upgrade the stock as, in their view, the company is “now poised to address the early Alzheimer’s disease market in 2023+ following the recent topline lecanemab Ph3 (CLARITY-AD) data.”
“BIIB reported a 3Q beat and raised FY22 revenue and EPS guidance on better-than-expected topline performance and continued cost management (despite ongoing erosion of Spinraza and the multiple sclerosis franchise), with discussion on the call centered primarily around Eisai-partnered lecanemab ahead of the upcoming data presentation at the Clinical Trials on Alzheimer’s Disease (CTAD) congress on Nov. 29,” wrote the analysts.
They explained that while investors are generally cautious heading into the full presentation at CTAD, Goldman’s discussions with leading neurologists and management lead them to believe that the results are clinically meaningful.
“We anticipate regulatory approvals (Eisai plans to submit for full approval in the US, EU and Japan in 1Q23) and, importantly, expect the demonstrated functional benefit will meet CMS’ high level of evidence requirement to support broad coverage. As a result, we now model for lecanemab peak global sales of $14bn (at ~$270, we estimate ~$7bn in sales are priced in). Separately, we await the appointment of a new CEO,” the analysts concluded.
