Piper still cautious on Biogen but says Roche failure a positive

Piper Sandler analyst Christopher Raymond says Biogen’s (BIIB) lecanemab’s competitive position has improved with this morning’s news that Roche’s (RHHBY) gantenerumab failed to show a benefit in two Phase 3 trials. The news removes a potential competitor, and the fact that gantenerumab also underperformed on the removal of beta amyloid "is likely to keep the a-beta hypothesis alive," Raymond tells investors in a research note. However, the analyst also wonders if Roche’s failure bodes poorly for potential subQ administration as Biogen and partner Eisai develop a subQ formulation for lecanemab. Raymond views the failure as a net positive for lecanemab but says physician perception and near-term uptake remain a concern. He keeps a Neutral rating on Biogen shares.