UBS analysts downgraded Biogen (NASDAQ:BIIB) from Buy to Neutral, adjusting the price target from $311 to $276, as per their recent note on Wednesday.
The analysts explained the bank’s decision to adopt a more cautious stance, citing a year of execution challenges and the unlikely near-term impact of Leqembi. They noted that the ramp-up of Leqembi, a treatment for Mild Cognitive Impairment (MCI) and Mild Alzheimer’s, is progressing slower than initially expected. Despite expecting Leqembi to eventually lead the market in its category, current IQVIA/Symphony data and management commentary suggest that a significant sales increase in 2024 is unlikely.
The analysts pointed out that the drug’s launch success is largely contingent on neurologist access and uptake, factors that are challenging for Biogen to influence.
Furthermore, the analysts commented on Skyclarys’ potential, acknowledging its importance as a near-term growth driver, especially following the Reata deal. However, they believe that its potential is already well-recognized in the market. For the upcoming 12 months, the analysts see limited scope for any significant positive adjustments to the existing estimates.