Biogen (BIIB) – Get Report shares rose Friday as analysts reacted positively to the Food and Drug Administration’s decision to prolong by a few months the overview interval for Biogen’s aducanumab Alzheimer’s remedy.
That “seems like a bullish sign,” Stifel analyst Paul Matteis wrote in a commentary cited by Bloomberg.
“Why is a significant amendment, or the need to have for new knowledge, bullish? … The extension of any assessment on the receipt of extra scientific analyses would counsel that Fda is strongly contemplating acceptance.”
He lifted his price target to $358 from $258.
The Cambridge, Mass., biopharmaceutical company’s stock not long ago traded at $294.94, up 10%. It has jumped 21% in excess of the earlier three months, in comparison with 15% for the S&P 500.
The new rate concentrate on suggests 34% upside from Thursday’s near.
Truist analyst Robyn Karnauskas agrees with Matteis. “Our crucial takeaway is that if the Food and drug administration would have wanted to reject the drug, we would have listened to the conclusion by now,” she claimed, in accordance to Reuters.
Morningstar analyst Karen Andersen places honest benefit at $346 for Biogen inventory.
Biogen’s “specialty-marketplace-concentrated drug portfolio and novel, neurology-targeted pipeline make a extensive financial moat,” she wrote in November.
“Biogen’s technique has its roots in the 2003 merger of Biogen (numerous sclerosis drug Avonex) and Idec (cancer drug Rituxan),” she spelled out.
“Rituxan’s industry penetration is large, and patents in the United States (wherever Biogen derives its earnings share from Roche) expired in 2018, major to biosimilar approvals in the U.S. in late 2019.
“While this pressures Biogen’s profit share, subcutaneous Rituxan as well as novel antibody Gazyva will allow for extended oncology earnings.”