Biogen ALS candidate failure puts further pressure on commercial portfolio, BofA says
skodonnell/iStock Unreleased via Getty Images


Biogen's (NASDAQ:BIIB) announcement on Monday that it is abandoning development of BIIB078, a phase 1 candidate for amyotrophic lateral sclerosis ("ALS"), adds additional pressure on the company's commercial portfolio, according to BofA Securities.
The firm has a neutral rating and a $225 price target (~ 6% upside based on Monday's close.).

Analyst Geoff Meacham said that Monday's development highlights growth concerns as Biogen's (BIIB) pipeline is composted mostly of early, high-risk, or niche assets.
"We suspect investors are increasingly looking for meaningful step up in business development to address the declining commercial franchises," he wrote.
Meacham added that he sees "better value elsewhere in biopharma."
Read why Seeking Alpha contributor Denis Buivolov says that Biogen (BIIB) is a hold.