Biogen (BIIB) – Get Report shares rose Friday as analysts reacted positively to the Food items and Drug Administration’s conclusion to lengthen by a few months the evaluate period of time for Biogen’s aducanumab Alzheimer’s cure.
That “seems like a bullish indicator,” Stifel analyst Paul Matteis wrote in a commentary cited by Bloomberg.
“Why is a major amendment, or the have to have for new details, bullish? … The extension of any assessment on the receipt of further clinical analyses would counsel that Fda is strongly looking at acceptance.”
He raised his selling price goal to $358 from $258.
The Cambridge, Mass., biopharmaceutical company’s stock not too long ago traded at $294.94, up 10%. It has jumped 21% around the past 3 months, as opposed with 15% for the S&P 500.
The new price focus on indicates 34% upside from Thursday’s shut.
Truist analyst Robyn Karnauskas agrees with Matteis. “Our key takeaway is that if the Food and drug administration would have wished to reject the drug, we would have heard the determination by now,” she said, according to Reuters.
Morningstar analyst Karen Andersen puts honest benefit at $346 for Biogen inventory.
Biogen’s “specialty-market-concentrated drug portfolio and novel, neurology-targeted pipeline create a large economic moat,” she wrote in November.
“Biogen’s approach has its roots in the 2003 merger of Biogen (numerous sclerosis drug Avonex) and Idec (most cancers drug Rituxan),” she discussed.
“Rituxan’s market penetration is higher, and patents in the United States (the place Biogen derives its revenue share from Roche) expired in 2018, foremost to biosimilar approvals in the U.S. in late 2019.
“Whilst this pressures Biogen’s financial gain share, subcutaneous Rituxan as well as novel antibody Gazyva will allow for prolonged oncology revenue.”