Needham analyst Ami Fadia has maintained their neutral stance on BIIB stock, giving a Hold rating today.
Ami Fadia has given his Hold rating due to a combination of factors surrounding Biogen’s recent developments. The European Commission’s marketing authorization for Leqembi is more restrictive compared to the FDA’s approval in the United States, as it is limited to adult patients with mild cognitive impairment or early Alzheimer’s disease who are non-carriers or heterozygotes of the ApoE ε4 gene. This restriction is likely due to safety concerns related to ARIA, which have resulted in a black box warning in the US label.
These limitations in the European approval could impact the pricing and labeling dynamics across different EU countries, adding uncertainty to the stock’s performance. The analyst anticipates that this news might exert pressure on Biogen’s stock price and plans to reassess estimates in light of these developments. Additional insights from the company’s management during the upcoming earnings call are expected to provide further clarity on the situation.
In another report released today, Piper Sandler also reiterated a Hold rating on the stock with a $135.00 price target.