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Biogen, a pharmaceutical company listed on NASDAQ as BIIB, has been downgraded by Wells Fargo from overweight to equal weight. The decision came as a result of the company’s declining sales of Skyclarys, a drug used to treat Friedreich’s ataxia, and the underwhelming uptake of its Alzheimer’s drug, Leqembi.
Wells Fargo attributed the primary rationale for the downgrade to Skyclarys, highlighting its Q4 sales of $56M, falling short of the $64M consensus estimate. The investment bank expressed concern about market penetration exceeding 20%, leaving less room for near-term growth surprises. According to Wells Fargo, Leqembi’s growth trajectory is also fraught with uncertainty, with initial uptake being disappointing.
“We suspect new investors may not want to come in at this point. Another important topic is the duration of Leqembi treatment,” Wells Fargo added. The investment bank also expressed skepticism about strong catalysts beyond the upcoming launches in 2024.
Wells Fargo has set a price target for Biogen at $240, signifying a lack of confidence in the company’s growth prospects.
