RBC says CMS clarity on Leqembi reimbursement should reduce Biogen overhang

RBC Capital analyst Brian Abrahams believes many people have been on the sidelines on Biogen (BIIB) because of concerns around Leqembi, including related to the PDUFA for potential full approval, upcoming competitor data from Eli Lilly (LLY) and the CMS decision on reimbursement. The firm, which says its "sense has been that reimbursement is the biggest uncertainty weighing on the stock" and on perceptions around Leqembi’s long-term potential, notes that CMS head Chiquita Brooks-LaSure "provided much clearer direction on their plans" while testifying before Congress this afternoon. When asked by a Congressman if "all patients indicated for the drug lecanemab and any future therapies in the class will have coverage upon full approval," she said that was correct, which the firm views as "a clear positive" for Biogen. RBC maintains an Outperform rating and $340 price target on Biogen shares.