Biogen shares were upgraded from hold to buy by Citi Research on Tuesday. The firm has predicted a 15% rally over the next year as Biogen focuses on treating spinal muscular atrophy.
Spinraza, is the company’s blockbuster drug which has shown positive results during clinical trials.
“The real driver of shares over the next 12-18 [months] is uptake of Spinraza, BIIB’s new drug for SMA and our proprietary survey suggests upside to estimates” equity analyst Robyn Karnauskas wrote in a research note.
“We currently model Spinraza gaining 10% penetration in the US and modest uptake in ex-US and get to $390M sales in 2017 (consensus at $200-$300M),” Karnauskas said.
Disclaimer: We have no position in Biogen Inc. (NASDAQ: BIIB) and have not been compensated for this article.