RBC sees 40% upside in Biogen as pipeline momentum builds

Published 25/06/2025, 19:34
© Reuters

Investing.com -- RBC Capital Markets raised its price target on Biogen (NASDAQ:BIIB) to $213 from $205, pointing to a broad set of advancing pipeline programs that could unlock as much as 40% upside for the stock.

Following a period of portfolio refocusing, Biogen’s pipeline is entering a more catalyst-rich phase starting in 2026, with several immunology and neurology assets progressing through mid- and late-stage trials.

RBC said the programs lack a single high-stakes binary event but could collectively drive material upside if successful.

Lead programs include felzartamab, an anti-CD38 antibody targeting rare kidney diseases, and litifilimab, a BDCA2-targeting drug in development for lupus and cutaneous lupus erythematosus.

RBC views both as “key drugs to watch,” citing supportive Phase 2 data and high unmet medical need.

Additional programs include BIIB080, a tau-targeting therapy for Alzheimer’s, and zorevunersen, currently in Phase 3 for Dravet syndrome.

RBC also highlighted upcoming data for dapirolizumab pegol, partnered with UCB, which could further bolster Biogen’s immunology franchise.

While the company’s multiple sclerosis business remains under pressure, RBC said the stock’s current valuation—around 2x sales and 8x forward earnings—underappreciates the pipeline’s potential. Progress on Leqembi, its Alzheimer’s treatment with Eisai, could also support sentiment.

Though some risks remain, most of the pipeline represents meaningful opportunities with achievable catalysts, the note said.

RBC’s new price target reflects updated modeling around these assets. The firm sees considerable appreciation potential with limited downside, even as much of Wall Street remains focused on Biogen’s legacy portfolio.

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