Piper Sandler stated a number of constructive catalysts are in sight for Biogen over the subsequent a number of quarters. Analyst Christopher Raymond upgraded Biogen to chubby from impartial. He additionally raised his value goal to $346 per share from $280 per share. The brand new goal implies upside of 20.3% from Friday’s shut. The agency named the foremost catalyst for Biogen as Alzheimer’s remedy Leqembi , which it co-developed with Japanese pharmaceutical firm Eisai. Leqembi is awaiting full approval from the Meals and Drug Administration by July 6. The Facilities for Medicare and Medicaid Providers introduced earlier within the yr that it might present broader protection of Leqembi following the FDA approval. “As soon as full approval and subsequent full CMS reimbursement is gained (each quite seemingly in our view), uptake of the drug will certainly speed up. Particularly, whereas share in the present day is minimal (0.7% of sufferers), docs challenge this share to nearly quadruple inside 6 months,” Raymond wrote in a Monday notice. “Furthermore, peak share is projected at nearly 24%. Pen to paper, these projections would infer an annual US run fee north of $500M inside 6 months, and over $5.4B at peak. For perspective, US consensus is simply $49M this yr and $2.9B in 2027,” Raymond continued. To make sure, Raymond stated that the pending full approval can also be a major impediment to his formidable development projections. He famous that 75% of docs indicated they’d by no means prescribe Leqembi beneath the present accelerated approval — in the meantime, the quantity will increase to over 80% when inside a yr of full approval. “Furthermore, addressing a key investor concern – nearly 80% of docs in the present day report enough entry to infusion capability, however that quantity drops just a bit to 70% after rising use upon full approval,” stated Raymond. “Different points such because the cumbersome current diagnostic protocol and ARIA issues are actual, but in addition appear fairly manageable in keeping with these docs. Weighed towards a really attention-grabbing dynamic the place most docs see the Leqembi’s CLARITY AD outcome as clinically significant, however particularly so for Alzheimer’s specialists, we predict – in distinction to Aduhelm – docs consider on this drug’s medical utility and can thus discover a approach to get it to sufferers,” Raymond added. Aduhelm is the controversial Alzheimer’s remedy developed by Biogen and Eisai, whose gross sales fell under Wall Road’s expectations as its efficacy was known as into query. “For our half, we predict Leqembi has set a excessive bar – particularly with regard to security,” stated Raymond. “Whereas administration has already telegraphed a good quantity of price financial savings, particularly by dismantling the Aduhelm industrial effort, and many others. we predict much more expense leverage is in retailer.” Shares of Biogen have been up 1.3% within the premarket Monday. Shares have gained 4% in 2023. They’re additionally up 35% prior to now 12 months. “Backside line, with this Leqembi suggestions and our expectation for a brand new period of administration execution at Biogen, we now suppose the inventory is price an in depth look. Patrons proper right here.” —CNBC’s Michael Bloom contributed to this report.
