Truist upgrades Biogen to Buy on Alzheimer's, pipeline optimism ahead of key data

Investing.com -- Truist Securities upgraded Biogen to Buy from Hold and raised its price target to $235 from $190, citing growing confidence in the company's Alzheimer's and immunology pipeline ahead of several major clinical data readouts over the next two years.

The brokerage said investor focus should shift toward upcoming pipeline catalysts rather than near-term earnings, highlighting detailed Phase 2 data for anti-tau Alzheimer's candidate diranersen (BIIB080) scheduled for presentation at the Alzheimer's Association International Conference (AAIC) on July 14. Truist expects the data could serve as a meaningful positive catalyst for the shares.

The upgrade reflects growing optimism that a string of upcoming clinical trial results could unlock value beyond Biogen's existing portfolio, with Truist arguing the market is underestimating the commercial potential of its Alzheimer's and immunology pipeline. The brokerage expects multiple late-stage data readouts over the next two years to reduce development risk and support further upside for the shares.

Beyond Alzheimer's disease, Truist pointed to approaching Phase 3 readouts for lupus drug litifilimab in the fourth quarter of 2026 and felzartamab in antibody-mediated rejection in mid-2027 as key value drivers. The brokerage incorporated risk-adjusted revenue forecasts for both programs into its model, arguing that the market is not fully reflecting their commercial potential.

The firm added 50% probability-adjusted peak sales of about $750 million for litifilimab and 65% probability-adjusted sales of roughly $500 million for felzartamab in antibody-mediated rejection, alongside $260 million for primary membranous nephropathy. Those changes lifted its estimated 2035 revenue forecast by approximately $1.5 billion, underpinning the higher price target.

Truist said it does not view Biogen's second-quarter results, due July 29, as a major catalyst, instead expecting the company's pipeline milestones to drive investor sentiment over the coming quarters.

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