Following the company’s fiscal rally and better-than-expected Q3 2022 guidance, Goldman Sachs opted for a Biogen upgrade (NASDAQ:BIIB) to Buy from Neutral, note the upcoming Phase 3 data reading on its test Treatment of Alzheimer’s disease lecanemab.
Even as the company struggles to generate sales for its FDA-approved amyloid Alzheimer’s therapy Aduhelm, Biogen (BIIB) surged in late September after it was announced that the lecanemab it developed with Eisai (OTCPK: ESALY) (OTCPK: ESALF) met the primary endpoint in the final phase of the study.
Despite investor concerns about the full study results to be presented in November, “our discussions with leading neuroscientists and management lead us to believe that the results makes clinical sense regardless of competitor assets,” Goldman Sachs analysts wrote.
Rivalry of Alzheimer’s drug developer Eli Lilly (ONLY) and Roche (OTCQX: RHHBY) (OTCQX: RHHBF) are set to post late-stage readings for their anti-amyloid candidates later this year and in mid-2023, respectively.
Increase price target on Biogen (BIIB) to $370 per share, analysts note that lecanemab is expected to generate peak global sales of $14 billion and that its functional benefit in Alzheimer’s disease could meet the strict Medicaid requirements to support broader coverage.
Despite FDA approval of Aduhelm in 2021, Medicaid has limited coverage for anti-amyloid and similar treatment. drugs amid concerns about efficacy.