Biogen downgrades hit sector
Leerink’s Geoffrey Porges pointed out in a note the meaningful catalysts that had been expected for Biogen Inc BIIB 4.67% “have passed, mostly positively, and generated some value for investors; the incremental catalysts from here look relatively limited.”
The analyst downgraded the company from Outperform to Market Perform, while lowering the price target from $305 to $300.
“Our downgrade is based on a slower than expected ramp for Spinraza, and the completion of the series of important catalysts that have evolved over the last few months,” Porges explained.
The analyst lowered the revenue estimate for 2017 by 1 percent, with the revenue estimate for later years being lowered by 2-3 percent.
“These adjusted forecasts are now more or less in line with consensus, and in fact consensus expectations for Spinraza have also been reduced recently,” Porges stated, while adding, “We are not particularly positive about the other programs in Biogen’s late stage pipeline such as BIIB074, BIIB059, STX100 and opicinumab (antiLINGO).”