Biogen’s Strategic Collaboration with City Therapeutics: A Buy Rating for Long-term Growth in RNAi Therapeutics

William Blair analyst Myles Minter has reiterated their bullish stance on BIIB stock, giving a Buy rating on May 23.

Myles Minter has given his Buy rating due to a combination of factors related to Biogen’s strategic collaboration with City Therapeutics. This partnership is aimed at developing next-generation RNAi therapeutics, specifically cityRNAs, which are designed to enhance mRNA degradation efficiency. This venture represents Biogen’s expansion into RNA-targeted therapeutics beyond its existing collaborations, showcasing its commitment to innovation in this field.
Furthermore, the collaboration involves Biogen taking on significant responsibilities in development, regulatory, and commercial efforts, indicating a strong commitment to the project’s success. The financial terms, including a cash payment and a convertible note for equity interest, reflect Biogen’s strategic investment in City Therapeutics’ promising technology. Although this initiative is in its early stages and may not immediately impact Biogen’s stock, the potential for more efficient RNAi assets and novel delivery methods aligns with Biogen’s long-term growth strategy, justifying the Buy rating.

In another report released on May 23, Mizuho Securities also maintained a Buy rating on the stock with a $169.00 price target.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is neutral on the stock.