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biogen (NASDAQ: BIIB) traded lower in pre-market trading Wednesday after UBS downgraded the stock to Neutral from Buy, citing slower-than-expected uptake of Leqembi, the FDA-approved Alzheimer's treatment the company markets. with Eisai (OTCPK:ESALF) (OTCPK:ESAIY) .
Citing comments from management and latest data from analytics companies, IQVIA (IQV) and ICONS (ICLR) Symphony Health, UBS analyst Colin Bristow believes there will not be a major improvement in Leqembi sales in 2024.
In July, the FDA fully approved anti-amyloid infusion for patients with mild cognitive impairment or those suffering from mild dementia due to Alzheimer's disease.
While Bristow expects Leqembi to become the market leader in MCI/mild Alzheimer's, he maintains that its implementation depends primarily on neurologist acceptance/access, which he believes is not under Biogen's (BIIB) control.
The analyst slashes his 2024 and 2025 sales estimates for Leqembi to below-consensus levels and raises BIIB's price target to $276 from $311 per share.
Bristow also sees a slight risk to the company's plans to apply for a subcutaneous version of the therapy in the US, citing a greater impact if the FDA requires additional data to support a lower dosing regimen.
