Sola Failure Decreases Value of Biogen's (BIIB) Aducanumab - BMO Capital
BMO Capital analyst M. Ian Somaiya weighed in on Biogen (NASDAQ: BIIB) with shares down on Eli Lilly's solanezumab's failure. The analyst said the news decreases the value of aducanumab's.
Somaiya commented, "We expect BIIB shares to trade down on solanezumab's failure, as we believe another Abeta drug failure increases aducanumab's development risk. But downside likely limited (10-15% in our view) given aducanumab's better Abeta oligomer targeting and trial design (early vs. sola's mild patients). We believe positive titration data (CTAD, 12/9), supporting safe use of highest, most effective dose from P1b, are key to aducanumab's P3 success or at a minimum realizing value in an M&A."
The firm maintained an Market Perform rating and price target of $294.00
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Shares of Biogen closed at $318.11 yesterday.