In a report released yesterday, Evan Seigerman from BMO Capital maintained a Hold rating on Biogen, with a price target of $150.00.
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Evan Seigerman has given his Hold rating due to a combination of factors impacting Biogen’s current market position and future prospects. The Alzheimer’s treatment market is becoming increasingly competitive, with Biogen’s Leqembi facing challenges from competitors like Lilly’s Kinsunla, which offers a more convenient dosing profile. This competition has led to a decline in Biogen’s market share, which dropped from approximately 70% to 50% in the anti-amyloid treatment market.
Despite these challenges, there is potential for improvement if Biogen secures approval for a subcutaneous version of Leqembi, which could enhance patient convenience and market differentiation. Additionally, while Biogen’s rare disease portfolio shows growth, it may not be enough to counterbalance declines in their multiple sclerosis franchise. The company’s pipeline also faces hurdles due to recent cost-cutting measures, which could limit future development. Overall, these factors contribute to a cautious outlook, justifying the Hold rating.
Seigerman covers the Healthcare sector, focusing on stocks such as Vertex Pharmaceuticals, Novo Nordisk, and Bristol-Myers Squibb. According to TipRanks, Seigerman has an average return of 5.4% and a 48.97% success rate on recommended stocks.