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
News sentiment analysis
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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
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