Biogen, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Geoff Meacham from Citi maintained a Hold rating on the stock and has a $135.00 price target.
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Geoff Meacham has given his Hold rating due to a combination of factors impacting Biogen’s stock. The recent issuance of a Complete Response Letter (CRL) by the FDA for Biogen’s supplemental New Drug Application (sNDA) for a higher dosing regimen of Spinraza has introduced a delay in the approval process. Although the FDA did not highlight any clinical data issues, it requested updates on technical information related to the chemistry manufacturing and controls (CMC) module. This unexpected development is seen as a manageable setback that Biogen is expected to address promptly.
Despite the delay, the introduction of higher dose Spinraza is anticipated to support the company’s near-term and intermediate-term growth. However, the maturation of Biogen’s pipeline and the success of new product launches, such as Leqembi and Skyclarys, are essential for the company’s growth trajectory. Given these considerations, the Hold rating reflects a cautious stance, acknowledging both the challenges and the potential for recovery in Biogen’s growth outlook.