UBS analysts lower Biogen price target due to revenue concerns and competition from Eli Lilly.

From Investing.com: 2024-10-03 09:15:34

UBS analysts lowered Biogen Inc’s price target to $202 from $234, with a revised 2025 EPS estimate of $17.38, citing more downside potential than upside. The cautious stance stems from setbacks in Alzheimer’s treatment Leqembi, leading to a decline in revenue growth projections and concerns about competition from Eli Lilly’s Kisunla.

Physician surveys indicate a 15-19% reduction in Leqembi sales forecast for 2025-2028 due to concerns about side effects and administrative burdens. Neurologists anticipate Kisunla gaining a significant market share by 2026, surpassing Biogen’s product. UBS’s report points to challenges in Biogen’s overall portfolio, with the MS sector facing persistent decline amidst competition.

Despite some investors finding Biogen’s stock appealing post-pullback, UBS analysts see limited growth prospects, with concerns about competitive pressures and revenue declines. The firm highlights challenges facing Leqembi and other products in Biogen’s portfolio, indicating a challenging growth narrative and persistent decline in the MS market.



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