Is Biogen Stock a Buy Right Now? This Is What You Need to Know

There’s a new FDA approved drug in town and an unexpected one at that. Going into Monday’s PDUFA date for aducanumab, Biogen’s (BIIB) Alzheimer’s disease drug, the general view on Read More... The post Is Biogen Stock a Buy Right Now? This Is What You Need to Know appeared first on TipRanks Financial Blog.

Is Biogen Stock a Buy Right Now? This Is What You Need to Know

There’s a new FDA approved drug in town and an unexpected one at that. Going into Monday’s PDUFA date for aducanumab, Biogen’s () Alzheimer’s disease drug, the general view on Wall Street was that the treatment’s chances of making it pass the regulators were pretty slim.

In the end, however, the FDA sprung a surprise and gave the much-needed therapy its seal of approval. The importance of the occasion should not be taken lightly, says Cowen’s Phil Nadeau, who calls the approval of aducanumab – or its intended brand name Aduhelm - a “major milestone for Biogen, Alzheimer's research, and patients with Alzheimer's disease.” Like many, heading into the big decision day, Nadeau was pessimistic.

“Following November's negative Ad. Com., we had been skeptical that approval was possible,” the 5-star analyst admitted. “Though it was clear the FDA reviewers wanted to approve Aduhelm, there did not seem to be a viable path since November's Ad. Com had concluded that clinical efficacy had not been established. However, proving once again that when there is a will there is a way, the FDA has granted accelerated approval to Aduhelm based on its ability to reduce beta amyloid levels in the brain.”

Since 2003, the FDA had not authorized any new Alzheimer’s therapies, and Biogen’s is the first approved treatment which targets the underlying causes of Alzheimer’s, instead of just treating symptoms of the disease.

While the FDA acknowledged the advisory committee’s negative opinion and controversies surrounding the drug’s filing, in the end, the regulatory body decided that the treatment’s benefits outweighed the risks. The FDA also noted Aduhelm reduced the level of amyloid plaques in a consistent and convincing manner, which is “reasonably likely to predict clinical benefit.”

However, to confirm Aduhelm is clinically beneficial, Biogen must conduct a post-approval clinical trial, and if the drug fails to impress, the FDA will have the option to take the therapy off the market.

Aduhelm caters to a major unmet need and market opportunity, as there are over 6 million sufferers of Alzheimer’s disease in the U.S. It is also set to be a hefty revenue generator – all in all, the drug will cost $56,000 a year.

Following the positive verdict, Nadeau upgraded Biogen’s rating from Market Perform to Outperform, and raised the price target from $225 to $450. The new target could yield investors returns of 8.5%. (To watch Nadeau’s track record, )

Despite the approval, not all on Wall Street are quite as exuberant. Based on 11 Buys and Holds, each, the analyst consensus rates the stock a Moderate Buy. The analysts expect the share price to stay rang-bound in the coming months, given the average price target currently stands at $412.90. (See BIIB stock analysis on TipRanks)

To find good ideas for biotech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Is Biogen Stock a Buy Right Now? This Is What You Need to Know appeared first on TipRanks Financial Blog.

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Tesla: Back on Track With Strong May China Numbers

Following April’s lackluster numbers, the Tesla (TSLA) bears were gathering for a feast ahead of the release of the China Passenger Car Association (CPCA) figures for May. In the end, Read More... The post Tesla: Back on Track With Strong May China Numbers appeared first on TipRanks Financial Blog.

Tesla: Back on Track With Strong May China Numbers

Following April’s lackluster numbers, the Tesla () bears were gathering for a feast ahead of the release of the China Passenger Car Association (CPCA) figures for May. In the end, there was little left for them to savour, as the EV leader appeared to bounce back from April’s worrying performance.

Tesla delivered 33,463 units in May, of which 21,936 were sold in the domestic market and 11,527 exported to Europe.

“This was a 29% jump from the month of April,” said Wedbush analyst Daniel Ives, “However, importantly the domestic cars sold in country were north of 20k as Tesla appears to have handled the shaky China PR issues (safety, big brother is watching-Beijing) and turbulence well as demand rebounded well ahead of expectations.”

Ives thinks the growth story appears to be back on track in “this linchpin region,” which starting in June, will put Tesla on a 300k run-rate for deliveries in China. A tough pill to swallow for all the “skeptics and haters piling on from the month of April,” a month which Ives thinks will prove to be “an anomaly rather than the norm.”

In fact, Ives anticipates a big growth spurt for the Chinese EV industry over the next couple of years, as “transformational consumer demand” will see EV deliveries double from the 5% they currently command out of total vehicle sales. Along with domestic stalwarts such has NIO, Xpeng and Li Auto, Tesla stands to be a major beneficiary.

Looking forward, Ives thinks it is not the “temporary” near-term chip shortage which will determine the company’s trajectory but rather Tesla's ability to further penetrate the Chinese market, and the latest numbers amount to a “clear shot in the arm for the bulls.”

“Now its about Musk playing nice in the sandbox and making sure that Tesla does not see any further stumbles in China which is poised to represent 40%+ of global deliveries by 2022,” the 5-star analyst summed up.

All in all, there’s no change to Ives’ rating, which stays an Outperform (i.e., Buy) or price target, which remains at $1,000. The implication for investors? Upside of 64%. (To watch Ives’ track record, )

Ives, however, is one of Wall Street’s most fervent Tesla supporters and not all are reading from the same manual. The stock has a Hold consensus rating based on 10 Buys, 7 Holds and 6 Sells, while the $639.81 average price target implies shares will gain ~5% over the next 12 months. (See Tesla stock analysis on TipRanks)

To find good ideas for EV stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Tesla: Back on Track With Strong May China Numbers appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

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