By Dhirendra Tripathi
Investing.com – Biogen (NASDAQ:BIIB) shares fell close to 2% Friday despite analysts raising their price targets after the Food and Drug Administration’s decision to approve the company’s Alzheimer’s drug.
The biotech company’s aducanumab is the first Alzheimer’s medicine in 18 years to secure the FDA nod, which came Monday (NASDAQ:MNDY).
Bernstein and JPMorgan (NYSE:JPM) raised their price targets on potential sales from the drug.
Bernstein’s outperform rating sees the Biogen stock at $500, an upside of 22% from the stock’s current level of $410.
According to analyst Aaron Gal, market circumstance will allow for strong adoption of Biogen’s ‘aduhelm’ and that regulatory scrutiny of the price of the new Alzheimer's drug will come later.
He sees aduhelm sales reaching $10 billion in 2023, with conservative assumptions.
Biogen will charge $56,000 for an annual course, a price drawing much criticism from advocacy groups.
JPMorgan analyst Cory Kasimov raised Biogen's target price to $435 while maintaining a neutral rating.