Piper Positive on Biogen's (BIIB) Nusinersen Potential, But Other Core Areas Questionable
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Piper Jaffray affirms Biogen (Nasdaq: BIIB) at Neutral with a price target of $333 amid concerns about the company's core potential.
The firm commented today,
Of all our companies under coverage, we struggle with BIIB's rating the most given our enthusiastic outlook for nusinersen in SMA and a belief that consensus growth estimates are likely to move higher in the coming months to reflect a stronger NT growth trajectory.
But the company does face some meaningful threats to its core MS and hemophilia franchises while Rituxan may also face biosimilar competition. With the recent success of the nusinersen study for infantile onset SMA, we are accelerating and increasing estimates for this product in our model and raising our terminal growth rate, which increases our PT from $293 to new $333. We can understand why many investors are overweight BIIB and at the least see meaningful optionality from the Alzheimer's program, although we are quite bearish on amyloid as a suitable target for this indication.
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