Brokerage firm Truist upgraded its rating on biotechnology company Biogen from Hold to Buy on Monday, while also raising its price target from $190 to $235. This new target implies an upside potential of approximately 18% from Friday's closing price.
The primary catalyst for this upgrade is upcoming pivotal clinical trial data from Biogen. Analysts highlighted that the company is set to present detailed results from the Phase 2 CELIA study for its anti-tau Alzheimer's disease candidate, Diranersen (BIIB080), at the Alzheimer's Association International Conference (AAIC) in London on July 14th. The presentation will include clinical, biomarker, and safety outcomes. This drug is an antisense oligonucleotide (ASO) therapy targeting MAPT RNA, designed to reduce tau protein production at its source—a mechanism that differs from many therapies that only target extracellular tau.
Analysts hold a positive outlook, noting that feedback from company management on the data has been very favorable. Furthermore, the plan to advance the program to Phase 3 trials itself suggests the evidence is compelling. Beyond the Alzheimer's pipeline, the firm is also optimistic about the potential of Biogen's immunology portfolio. This includes the lupus drug Litifilimab, with Phase 3 data expected in the fourth quarter of 2026, and Felzartamab, with Phase 3 data for antibody-mediated rejection anticipated around mid-2027. Truist has incorporated risk-adjusted revenue from these two programs into its valuation model, estimating peak sales of approximately $750 million for Litifilimab and around $500 million for Felzartamab. This adds roughly $1.5 billion to the firm's revenue forecast for Biogen in 2035.
The firm believes the market is currently undervaluing the commercial potential of Biogen's Alzheimer's and immunology pipelines. It anticipates that the sequential release of multiple late-stage data points over the next two years will reduce development risk and support further stock price appreciation. According to available data, 23 out of 38 analysts covering Biogen currently rate the stock as a Buy or Strong Buy. In pre-market trading on Monday, Biogen shares were up nearly 4%. Year-to-date, the stock has gained approximately 13%.
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