Stifel downgrades Biogen on slow Alzheimer’s drug launch, uncertainty ahead

Investing.com -- Stifel downgraded Biogen Inc (NASDAQ:BIIB ) stock to “hold” from “buy” as it noted the company was grappling with a challenging year due to a slow rollout of its Alzheimer’s drug, lecanemab.

Despite initial expectations of a gradual launch to accommodate infrastructure challenges, progress has lagged further than anticipated.

“We’re downgrading BIIB even after the stock has been a poor performer in 2024,” said analyst.

“We see shares rangebound until something else changes the narrative, and it’s less clear what this will be in 2025”

Regulatory delays are also weighing on Biogen, with approvals for subcutaneous (SQ) formulations of lecanemab now pushed to 2025 for maintenance and 2026 for initiation. This adds to broader challenges, including a declining base business, a softer-than-expected launch for Skyclarys, and limited clinical catalysts in 2025.

Skyclarys, seen as a critical growth driver, will be under close scrutiny in 2025 as Biogen seeks to demonstrate its potential to exceed $1 billion in revenue. Meanwhile, the absence of major clinical milestones, aside from potential developments for Litifilimab in systemic lupus erythematosus.

Investor attention is now firmly on drug launch execution and the potential for significant business development deals to reinvigorate its pipeline.

Source: Investing.com