Fannie Mae, Freddie Mac shares tumble after conservatorship comments
On Tuesday, BTIG analyst Thomas Shrader maintained a Neutral rating on Biogen (NASDAQ:BIIB) shares, highlighting the company’s recent announcement to provide regular updates on in-process research and development (R&D) from collaborations. Biogen’s management has indicated a new focus on significant R&D collaborations, as evidenced by the planned $165 million charge in the next quarter related to the Stoke Therapeutics (NASDAQ:STOK) collaboration.
Biogen’s strategy shift was first hinted at during this year’s JPM conference, where management discussed the Hi-Bio acquisition and its potential mid-term readouts. The company, with its robust market capitalization of $17 billion and impressive gross profit margin of 76%, suggests a broader approach to attracting partners across various indications, leveraging its global manufacturing and marketing capabilities. This strategy has precedent in Biogen’s history, notably with the partnership and subsequent full acquisition of rights to Tysabri, a monoclonal antibody for multiple sclerosis (MS).
The collaboration with Stoke Therapeutics, known for its TANGO approach for genetic conditions, is currently the most prominent example of Biogen’s collaborative efforts. Biogen’s management sees lower biology risk with the TANGO approach, which targets identified genes known to be under-expressed in symptomatic patients. This optimism is contrasted against the backdrop of Biogen’s previous long-standing siRNA relationship with Alnylam Pharmaceuticals (NASDAQ:ALNY).
In addition to the Stoke collaboration, Biogen’s guidance also pointed to modest growth potential for SKYCLARYS, mainly outside the United States, with some domestic growth expected from the identification and treatment of long-misdiagnosed patients.
Biogen’s pivot towards a more collaborative R&D model and its implications for the company’s pipeline and commercial strategy reflect a broader trend within the pharmaceutical industry to leverage partnerships and acquisitions for growth and innovation. With Biogen’s history of successful partnerships and a new strategy in place, the company is positioning itself to navigate the complexities of drug development, particularly in challenging areas like neurology and autoimmunity.
In other recent news, Biogen has announced its earnings expectations, with RBC Capital Markets projecting revenues to align closely with consensus estimates at $2.25 billion. Spinraza, a treatment for spinal muscular atrophy, is expected to slightly exceed expectations, while multiple sclerosis treatments Avonex and Tysabri may underperform. Biogen’s Alzheimer’s drug, Leqembi, is anticipated to meet revenue projections, and RBC Capital Markets suggests potential future developments could enhance stock value. Additionally, Biogen’s investigational drug, BIIB080, has received Fast Track designation from the FDA for Alzheimer’s treatment, potentially expediting its review process. This designation follows promising Phase 1b study results showing reductions in tau protein associated with Alzheimer’s. In another development, Organon has acquired the U.S. rights to TOFIDENCE™, a biosimilar to ACTEMRA®, from Biogen, further expanding its arthritis treatment portfolio. Furthermore, Biogen plans to establish a new global headquarters in Cambridge, Massachusetts, by 2028, consolidating its operations into a single innovation hub. Lastly, UBS and RBC Capital Markets have adjusted their price targets for Biogen, with UBS reducing it to $134 and RBC Capital Markets to $221, reflecting ongoing market challenges and strategic evaluations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.