Slow Market Penetration For Biogen's Another Alzheimer's Drug: UBS Highlights Risks, Forecasts
Portfolio Pulse from Vandana Singh
UBS downgraded Biogen Inc (NASDAQ:BIIB) from Buy to Neutral with a lower price target of $276, citing slower market penetration for its Alzheimer's drug Leqembi. Challenges in neurologist access and uptake have led to reduced sales forecasts for 2024/25. Despite a positive view on Biogen's new CEO and strategy, UBS sees limited short-term stock performance benefits and recommends stocks with higher growth potential like Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). BIIB shares fell 1.10% to $248.75.
January 24, 2024 | 7:55 pm
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POSITIVE IMPACT
UBS recommends Regeneron Pharmaceuticals as a Buy-rated stock with higher growth potential, which could attract investor interest away from Biogen.
UBS's recommendation of Regeneron as a stock with higher growth potential suggests a positive outlook for REGN. This could lead to increased investor interest and potentially a rise in REGN's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Vertex Pharmaceuticals is highlighted by UBS as a Buy-rated stock with high growth potential, which may benefit from the shift in investor preference.
UBS's mention of Vertex Pharmaceuticals as a Buy-rated stock indicates a positive sentiment that could lead to increased investor interest. This may result in a positive impact on VRTX's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
UBS downgraded Biogen to Neutral from Buy and lowered the price target to $276 due to slower expected sales of Alzheimer's drug Leqembi. The company's stock price may face short-term pressure from the revised sales forecasts and the downgrade.
The downgrade by UBS is a direct negative sentiment towards Biogen's short-term prospects, particularly due to the slower market penetration of Leqembi. This is likely to impact investor confidence and could lead to a decrease in the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100