Piper Sandler Downgrades Biogen, Cuts PT by $177 Amid Transition Challenges By Investing.com
Investing.com — Piper Sandler cut Biogen Inc (NASDAQ: ) from an “overweight” rating to a “neutral” rating, citing a challenging transition period for the biotech company. The brokerage hacked its price target from $315 to $138, citing concerns about Biogen’s near-term revenue mix and an uphill battle building its Alzheimer’s franchise.
Biogen is in a difficult balancing act “with building its Alzheimer’s franchise, which in our opinion is an uphill battle, while on the other hand it relies heavily on research and development focused on immunology, giving itself a better chance of achieving long-term value recovery.”
Biogen’s top line remains heavily reliant on its multiple sclerosis (MS) portfolio, which accounts for more than 60% of revenue in 2024, including royalties from Ocrevus. Piper Sandler flagged several hurdles for MS products, including competition from biosimilars and the impending loss of exclusivity for key drugs such as Tecfidera and Vumerity.
The brokerage also questioned the commercial potential of Biogen’s Alzheimer’s drug Leqembi, despite advances such as a subcutaneous autoinjector and ongoing studies. “We remain cautious with the AD franchise, with key milestones still years away,” the note said.
Highlighting the potential of Biogen’s immune pipeline, particularly dapirolizumab pegol for lupus, Piper Sandler noted that key data won’t come until 2027 or later, leaving a long way to go before revenue stabilizes.
