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On Thursday, Goldman Sachs reaffirmed its confidence in Biogen (NASDAQ:BIIB) shares, maintaining a Buy rating and a price target of $196.00. According to InvestingPro data, Biogen currently trades at $120.69, with analyst targets ranging from $115 to $260, suggesting significant potential upside. The stock appears undervalued based on InvestingPro’s Fair Value analysis, while trading at an attractive P/E ratio of 11.86. The endorsement comes as Biogen’s partner, Eisai, reported earnings that included fiscal year-ending 1Q25 revenues for Alzheimer’s treatment Leqembi of approximately $299 million. This figure surpasses Eisai’s forecast of about $280 million, fueled by stronger-than-anticipated sales in Japan and China, while meeting expectations in the U.S. market.
Eisai also provided its sales guidance for Leqembi for the fiscal year ending in the first quarter of 2026, projecting global sales of around $517 million. This estimate falls short of the consensus figures from Goldman Sachs and Visible Alpha, which stand at $535 million and $600 million, respectively. The conservative outlook, particularly for the U.S. market, where sales are estimated at $270 million compared to the more optimistic Goldman Sachs and consensus predictions of $318 million and $413 million, reflects a cautious stance.
Eisai’s strategy for increasing Leqembi’s commercial reach in the U.S. includes targeting 2,000 high-potential primary care providers starting in the second quarter. This initiative is part of the demand stimulation phase, with expectations for demand growth in 2026. This anticipation is based on two potential approvals: the subcutaneous maintenance dosing of Leqembi, which has a PDUFA date of August 31, 2025, and could provide a competitive edge over Lilly’s Kisunla, and the approval and reimbursement for a novel blood-based biomarker in-vitro diagnostic test from Fujirebio, which would facilitate the diagnosis and referral of Alzheimer’s patients by primary care physicians. With a robust financial health score rated as GOOD by InvestingPro, Biogen maintains strong fundamentals, including a healthy current ratio of 1.44 and substantial free cash flow yield of 14%.
Goldman Sachs is also keeping an eye on other developments in the Alzheimer’s treatment space, including an interim readout for Lilly’s Kisunla in preclinical Alzheimer’s, which could have implications for Biogen and Eisai’s AHEAD 3-45 study with data expected in 2028. Additionally, the firm is watching for top-line Phase 3 data for Novo Nordisk (NYSE:NVO)’s oral GLP1-RA semaglutide in the second half of the year, which could potentially impact Biogen.
The analysis by Goldman Sachs points to a need for a more significant increase in Leqembi revenue, which is likely to occur beyond 2026. Despite some cautious projections, the firm’s maintained Buy rating and price target suggest a positive outlook for Biogen’s stock in the long term. With a market capitalization of $17.68 billion and strong gross profit margins of 75.65%, Biogen remains a prominent player in the biotechnology sector. InvestingPro subscribers have access to 7 additional key insights about Biogen, along with comprehensive financial analysis and detailed Pro Research Reports that transform complex Wall Street data into actionable intelligence.
In other recent news, Biogen reported its first-quarter earnings for 2025, revealing a revenue of $2.43 billion and an adjusted earnings per share (EPS) of $3.02, surpassing analyst expectations. Canaccord Genuity noted Biogen’s robust top-line performance, although the firm lowered its price target to $220 while maintaining a Buy recommendation. Similarly, H.C. Wainwright reduced its price target for Biogen to $187, reflecting adjustments in discount rates and product penetration estimates. Stifel maintained a Hold rating with a $144 price target, citing mixed performance in Biogen’s product lineup.
Biogen’s Alzheimer’s drug, Leqembi, showed a significant year-over-year sales increase of 395%, with an 11% sequential growth. The drug’s approval in Canada and the European Union has boosted its acceptance among neurologists and patients. Biogen’s recent earnings highlight the company’s strong cash flow and product performance, despite challenges in the multiple sclerosis market due to biosimilars and generic competition.
The company anticipates a mid-single-digit revenue decline for the year, projecting non-GAAP EPS between $14.50 and $15.50. Biogen plans to initiate five phase three studies in 2025, with expectations for potential FDA approvals and data readouts that could influence future growth. Despite competitive pressures, Biogen remains a leader in Alzheimer’s treatment innovation, with promising developments in its pipeline, including Eisai’s Leqembi and upcoming clinical data.
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