Eisai (ESALY) and its partner Biogen (NASDAQ:BIIB) presented the full Phase 3 lecanemab (newest Alzheimer’s drug) data. In response, H.C. Wainwright analyst Andrew Fein stated, “The totality of the lecanemab data might allow full FDA approval in 2023.”
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Fein added, “Eisai’s data package concerning lecanemab is strong enough to allow receiving full approval from the FDA and might eventually help achieve Medicare coverage based on the disease-modifying effect of lecanemab and the favorable risk-benefit aspect.”
Besides Fein, Jefferies analyst Michael Yee, Mizuho analyst Salim Syed, Wedbush analyst Laura Chico, and JPMorgan’s Chris Schott believe lecanemab would receive FDA approval.
However, analyst Salim Syed highlighted that, despite being a partner to Eisai in the lecanemab program, the Phase 3 presentation didn’t mention Biogen. Syed added that “Biogen’s complete absence from any remarks for such a high profile presentation is intriguing.” The analyst believes that the development indicates “a growing possibility of an oncoming litigation between the partners and could pressure BIIB stock.” Nevertheless, Syed is bullish about Biogen stock.
Is BIIB a Buy or Sell?
Wall Street is cautiously optimistic about BIIB stock. It has received 19 Buy and seven Hold recommendations for a Moderate Buy consensus rating. Meanwhile, analysts’ average price target of $310.58 implies only 1.8% upside potential.
While analysts are cautiously optimistic, hedge funds bought 57.77K BIIB stock last quarter. Meanwhile, it has an Outperform Smart Score of nine.
