Biogen upgraded to overweight at Piper Sandler on bullish Leqembi outlook
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Piper Sandler has upgraded Biogen (NASDAQ:BIIB) to overweight as it sees a "confluence of positive catalysts" in the near future, including robust uptake of Alzheimer's therapy Leqembi (lecanemab).
The firm has upped its price target to $346 from $280 (~16% upside based on Monday's close).
Analyst Christopher Raymond said that based on a survey of 73 neurologists and Alzheimer's specialists, use of Leqembi is set to accelerate once the drug gains full approval and Center for Medicare & Medicaid Services ("CMS") reimbursement coverage takes effect.
The US FDA is set to act on full approval by July 6. A CMS decision on reimbursement is expected by the end of the year.
Piper sees annual run rate sales of just over $500M within six months and $5.4B in peak sales. The consensus estimate for sales by 2027 is $2.9B.
For fiscal years 2023 and 2024, the firm projects Leqembi sales of, respectively, $55M and $465M.
While Raymond said that results from Eli Lilly's (LLY) donanemab expected this quarter could impact his upgrade, he added that Leqembi has set a high bar and it will be difficult for Lilly's candidate to match the data seen with it.
The Institute for Clinical and Economic Review earlier Monday released a final report questioning the efficacy and cost effectiveness of Leqembi.