Shares of Biogen (NASDAQ:BIIB) are trending about 50% higher in the pre-market trading session today. Last night, the biopharmaceutical company announced that its Alzheimer’s biologic drug, lecanemab, jointly developed with Japanese pharmaceutical company Eisai, has met its primary endpoint in a Phase 3 trial. Biogen now plans to apply for drug approval.
Lecanemab, a monoclonal antibody treatment, jointly developed by Eisai and Biogen, reduced the build-up of sticky plaques in the brain known as beta amyloid, which likely causes Alzheimer’s disease.
In the trial conducted on 1800 patients with early Alzheimer’s over 18 months, lecanemab reduced the rate of cognitive decline by 27% compared to patients who received a placebo.
Eisai has applied for accelerated approval of lecanemab to the US Food and Drug Administration (FDA). It will also submit applications for full approval to regulatory authorities in Europe, and Japan by March 31, 2023.
Biogen’s CEO, Michel Vounatsos, stated, “Today’s announcement gives patients and their families hope that lecanemab, if approved, can potentially slow the progression of Alzheimer’s disease, and provide a clinically meaningful impact on cognition and function.”
While the trial also met all the key secondary endpoints, there were reports of some side effects like brain swelling and brain bleeding.
What is the Target Price for Biogen?
As per TipRanks, Biogen stock has an average price forecast of $259.33 implying 31.11% upside potential. The Wall Street community is both cautious and optimistic about the stock. Overall, the BIIB stock commands a Moderate Buy consensus rating based on 12 Buys and six Holds.
Markedly, the stock has received rating upgrades and upward price target revisions from a number of Wall Street analysts, following the news yesterday.
BMO Capital analyst Evan Seigerman upgraded Biogen to Buy from Hold and also significantly increased the price target to $360 from $217.
The analyst highlighted that the “data doesn’t get much cleaner than this in biotech” and “diminishes the possibility for Centers for Medicare and Medicaid Services to deny broad coverage of the Alzheimer’s drug once approved.”
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