Canaccord Analyst Gives “Buy” Rating on Biogen Despite Skepticism on Its Alzheimer’s Drug Getting Approved

Cannacord Genuity analyst Sumant Kulkarni has upgraded shares of Biogen Inc. from “hold” to “buy” despite skepticism concerning the approvability of the company’s Alzheimer’s drug.

The analyst also increased his price target from $305 to $360.

In a note, Kulkarni wrote that even the aducanumab skeptics agree for a variety of reasons it has a decent shot at FDA approval, and this likelihood is not reflected in shares at current levels.

“We cannot, however, underestimate investors’ fear of missing out on the potential to get ahead of what might be an approval for the first ever disease-altering therapy for Alzheimer’s, which simultaneously presents high unmet need and a large addressable market,” the analyst wrote.

Kulkarni also expects a fairly decent quarter when Biogen reports results this Thursday.

Aducanumab (BIIB037) is an investigational human monoclonal antibody studied for the treatment of early Alzheimer’s disease. Biogen licensed aducanumab from Neurimmune under a collaborative development and license agreement. Since October 2017 Biogen and Eisai have collaborated on the development and commercialization of aducanumab globally.

EMERGE and ENGAGE were Phase 3 multicenter, randomized, double-blind, placebo-controlled, parallel-group studies designed to evaluate the efficacy and safety of aducanumab. The primary objective of the studies was to evaluate the efficacy of monthly doses of aducanumab as compared with placebo in reducing cognitive and functional impairment as measured by changes in the CDR-SB score. Secondary objectives were to assess the effect of monthly doses of aducanumab as compared to placebo on clinical decline as measured by MMSE, ADAS-Cog 13, and ADCS-ADL-MCI.

Disclaimer: We have no position in Biogen Inc. (NASDAQ: BIIB) and have not been compensated for this article.