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Monday, H.C. Wainwright maintained a Buy rating on Biogen (NASDAQ:BIIB) but reduced the price target to $187 from $241, with the stock currently trading at $123.53. According to InvestingPro data, analyst targets range from $115 to $260, with a consensus recommendation of 2.22 (Buy). The adjustment follows recent developments around Biogen’s Alzheimer’s drug, Leqembi, which has been showing strong growth. Analysts noted a 395% year-over-year increase in sales and an 11% sequential growth from the last quarter.
During the ADPD 2025 conference in Vienna, insights from a key opinion leader (KOL) at Stanford University were shared, indicating a shift in neurologists’ attitudes towards anti-amyloid therapies for Alzheimer’s disease. The KOL observed increased acceptance and enthusiasm, especially following Leqembi’s approval in Canada and the European Union. As a prominent player in the biotechnology industry, Biogen maintains strong financial health with a 76% gross profit margin and robust cash flows to cover its debt obligations.
The KOL also highlighted the high awareness and demand for Leqembi among patients, despite the time it takes to receive the first infusion. The establishment of specialized clinics like the Alzheimer’s Care and Treatment (ACT) clinic at Stanford, which provides comprehensive care for Alzheimer’s patients, is expected to be a model for other centers.
Despite the competition from Kisunla, Leqembi is anticipated to continue its market uptake, potentially aided by maintenance dosing and subcutaneous administration options. The KOL also mentioned that while blood-based biomarkers for Alzheimer’s are not yet mainstream, more longitudinal study data could change this.
H.C. Wainwright’s decision to lower Biogen’s price target reflects an updated discount rate to better align with the current macro environment for small to mid-cap biotech companies. Additionally, the firm has revised its product penetration estimates based on recent guidance, resulting in the new price target. InvestingPro analysis suggests Biogen is currently undervalued, trading at an attractive P/E ratio of 12.2 and showing strong free cash flow yield. For deeper insights into Biogen’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Biogen reported first-quarter 2025 revenues of $2.43 billion and an adjusted earnings per share (EPS) of $3.02, surpassing both Canaccord’s and consensus estimates of $2.23 billion in revenue. Despite exceeding expectations, Canaccord Genuity lowered its price target for Biogen to $220 from $265, while maintaining a Buy rating, emphasizing the company’s robust top-line performance. Stifel analysts, however, maintained a Hold rating with a $144 price target, citing a cautious stance due to near-to-mid-term projections for lecanemab that may not be conservative. The earnings report highlighted strong performances for Biogen’s products, including Skyclarys and lecanemab, despite modest growth in the U.S. market.
Biogen’s recent earnings call revealed a 6% year-over-year increase in revenue, driven by strong product launches, even as the company faces competitive pressures. The company projects non-GAAP EPS for 2025 to range between $14.50 and $15.50, with a mid-single-digit decline in revenue anticipated. The firm also discussed its plans to initiate five phase three studies in 2025, which could influence future growth. Analysts noted that while Biogen’s pipeline holds potential, challenges remain that may affect future demand. Despite these challenges, Biogen remains optimistic about its innovative therapies, particularly in Alzheimer’s and rare disease markets.
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