Truist Securities has raised Biogen's stock rating from Hold to Buy, increasing the price target from $190 to $235. This upgrade suggests a potential upside of approximately 18% from Friday's closing price of $199.15.
In premarket trading, Biogen shares rose by 1.3%, reaching $201.63. Despite a 7.8% decline this month, the stock remains up 13% year-to-date, outperforming the S&P 500's 11% gain. The timing of the upgrade coincides with Biogen's upcoming presentation at the Alzheimer’s Association International Conference in London, where the company plans to disclose Phase 2 data for its experimental Alzheimer’s drug, diranersen.
Pipeline Developments and Forecasts
Truist's positive outlook is not solely based on diranersen. The firm has also included risk-adjusted revenue forecasts for Biogen's lupus drug, litifilimab, and felzartamab, indicating potential future growth. Truist anticipates key late-stage pipeline readouts over the next two years, including a Phase 3 readout for litifilimab expected in Q4 2026 and for felzartamab in mid-2027.
- Estimated peak sales: $750 million for litifilimab and $500 million for felzartamab.
- Additional forecast increase: approximately $1.5 billion in revenue by 2035.
Truist believes that the market is not fully recognizing the commercial potential of Biogen’s Alzheimer’s and immunology pipeline. Notably, they do not see Biogen's Q2 earnings report, set for July 29, as a significant catalyst for stock movement. Instead, the focus remains on the upcoming diranersen data.
Investors should also monitor Ionis Pharmaceuticals, a development partner for Biogen. Ionis experienced a sharp decline in stock price following a recent setback with a heart drug developed with AstraZeneca.
This material is informational and should not be considered financial advice.
