Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - JPMorgan has reiterated its Neutral rating and $175.00 price target on Biogen (NASDAQ:BIIB), currently trading at $135.33, ahead of the company’s second-quarter earnings report scheduled for July 31. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value estimate.
The investment bank forecasts Leqembi sales contribution of $39 million for the quarter, based on end market sales of $115 million, with Leqembi remaining the primary focus of the Biogen story. JPMorgan expects a continued gradual ramp throughout the year with potential acceleration in 2026 and beyond.
For the second quarter overall, JPMorgan projects sales of $2.4 billion, approximately $70 million above consensus, and earnings per share of $4.02, in line with consensus estimates.
Despite Biogen’s stock underperformance compared to the broader group, JPMorgan remains on the sidelines due to challenges facing the company’s core portfolio combined with slower ramps for key growth products Leqembi and Skyclarys.
The bank notes that an interim readout from Eli Lilly (NYSE:LLY)’s preclinical Alzheimer’s study, potentially in late 2025 or 2026, would have a positive read-through to Biogen’s Leqembi and represent a clear positive catalyst for the stock.
In other recent news, Biogen Inc. has announced several developments that may interest investors. The company reported interim Phase 1 results for its spinal muscular atrophy (SMA) treatment, salanersen, showing promising outcomes in children who had previously undergone gene therapy. The study revealed that both 40 mg and 80 mg doses were generally well-tolerated, with participants showing significant improvements in motor milestones and reductions in neurofilament levels. Additionally, Biogen has initiated a Phase 3 trial of felzartamab for primary membranous nephropathy (PMN), a rare kidney disease, with results expected in 2029. This marks the company’s third Phase 3 trial of felzartamab this year. In another development, Biogen has begun dosing in a Phase 3 trial for omaveloxolone in children with Friedreich ataxia, aiming to address the unmet need in younger patients. On the analyst front, RBC Capital reiterated its Outperform rating on Biogen, citing potential acceleration for its Alzheimer’s treatment, Leqembi, and other catalysts. Meanwhile, UBS maintained a neutral rating, expressing caution due to timeline uncertainties in Alzheimer’s treatment trials.
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