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Biogen shares target cut $20 by Oppenheimer

EditorAhmed Abdulazez Abdulkadir
Published 19/04/2024, 10:35 pm

On Friday, Oppenheimer adjusted its price target for Biogen (NASDAQ:BIIB), a biotechnology company, ahead of its first-quarter earnings report scheduled for April 24, 2024. The firm reduced the target to $270 from the previous $290 while maintaining an Outperform rating on the stock.

The revision comes as Oppenheimer reviews several key factors that could impact Biogen's performance. These include the company's financial health and the progress of its "Fit-for-Growth" initiatives. Additionally, updates on the launch of Biogen's Alzheimer's drug, Leqembi, are under scrutiny, particularly concerning the build-out of infrastructure and uptake metrics, which may be influenced by recent positive developments in Alzheimer's disease (AD) treatment dynamics.

The firm is also considering the status of Leqembi's Marketing Authorization Application (MAA) following the rescheduling of deliberations by the Committee for Medicinal Products for Human Use (CHMP). Furthermore, the submission process for a subcutaneous version of Leqembi and the expected decision in the second quarter of 2024 regarding its use for Frontotemporal Dementia (FTD) are being assessed.

Biogen's presentation on BIIB113 and updates on other AD programs, such as BIIB080 in collaboration with Ionis Pharmaceuticals (NASDAQ:IONS) and ATV:Aβ with Denali Therapeutics (NASDAQ:DNLI), are also on the radar. The company's launch trajectories for Zurzuvae and Skyclarys, which may inform potential near-term revenue growth, are evaluated alongside the outlook for Biogen's multiple sclerosis (MS) business, especially considering the emergence of a Tysabri biosimilar.

Lastly, Oppenheimer is looking at Biogen's pipeline updates, which include four readouts expected in mid-2024, and the company's business development (BD) strategy and capital allocation priorities. The new price target reflects adjustments made to Oppenheimer's model based on these various considerations.

InvestingPro Insights

As Biogen (NASDAQ:BIIB) prepares to share its first-quarter earnings report, investors are closely monitoring the company's performance indicators. According to InvestingPro, Biogen's market capitalization stands at $27.69 billion, with a Price/Earnings (P/E) ratio of 23.8, which adjusts to a more attractive 16.78 when considering the last twelve months as of Q4 2023. Despite a slight revenue decline of 3.32% over the last year, Biogen maintains a strong gross profit margin of 74.24%, underscoring its ability to manage costs effectively.

InvestingPro Tips highlight that Biogen is a prominent player in the biotechnology industry and has been trading with low price volatility. Interestingly, the stock price often moves in the opposite direction of the market, which could be a consideration for investors seeking a hedge in their portfolio. Additionally, Biogen's stock is trading near its 52-week low, presenting a potential entry point for investors, especially as analysts predict the company will remain profitable this year.

For those looking to delve deeper into Biogen's financials and stock performance, InvestingPro offers additional insights and tips. Using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of data, including 5 more InvestingPro Tips for Biogen, to inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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