Needham analyst Ami Fadia has maintained their neutral stance on BIIB stock, giving a Hold rating on September 16.
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Ami Fadia has given his Hold rating due to a combination of factors surrounding Biogen’s recent strategic moves. The acquisition of Alcyone Therapeutics is seen as a positive step for Biogen, as it aims to enhance its capabilities in delivering antisense oligonucleotides (ASOs) through the ThecaFlex DRx device. This device is currently being tested with Spinraza for spinal muscular atrophy, which could potentially open pathways for other therapies in Biogen’s portfolio.
Despite the potential benefits of this acquisition, the immediate impact on Biogen’s stock is expected to be minimal. The upfront payment of $85 million, along with future milestone payments, represents a significant investment, but the financial outcomes will largely depend on the successful development and regulatory approval of ThecaFlex DRx. As a result, the Hold rating reflects a cautious optimism, acknowledging the strategic value of the acquisition while recognizing the uncertainties and time required to realize its full potential.
In another report released on September 16, J.P. Morgan also maintained a Hold rating on the stock with a $175.00 price target.