Biogen (BIIB) Sale Dependent on Value of Aducanumab - BMO Capital

BMO Capital analyst M. Ian Somaiya weighed in on Biogen (NASDAQ: BIIB) amid reports Tuesday that the company is in talks with Merck and Allergan on a potential takeout.

Somaiya said a potential sale, in their opinion, is likely dependent on Biogen's willingness to accept CVRs for its Alzheimer's franchise.

"We believe a sale now makes sense as Biogen would get “full” value for its multiple sclerosis (MS) franchise (prior to generic Gilenya/Aubagio; branded ozanimod launch) and ocrelizumab in PPMS (12/28/16), nusinersen (mid-2017 launch), and biosimilars. An acquisition price, assuming a premium to historical revenue multiples (5x vs. 3-4x avg.), could approach $337/share, suggesting an acquirer would need to assign a value to aducanumab for Alzheimer’s, which alone could be worth an additional $57/share."

The firm maintained a Market Perform rating and price target of $340 on BIIB.

For an analyst ratings summary and ratings history on Biogen click here. For more ratings news on Biogen click here.

Shares of Biogen closed at $330.11 yesterday.

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