Biogen downgraded at UBS as Leqembi ramp progressing slower than expected

UBS cut Biogen (NASDAQ:) to Neutral from Buy, lowering the price target to $276 from $311 in a note Wednesday.

Analysts at the bank are now moving to the sidelines following a year of execution and the low probability of a near-term Leqembi inflection.

The “Leqembi ramp [is] progressing slower than we’d expected,” wrote the analysts. “While we still expect Leqembi to be the market leader in MCI/Mild Alzheimer’s, based on our review of the latest IQVIA/Symphony data and management commentary, we do not expect a major sales inflection in 2024, with the launch primarily gated by neurologist access/uptake which is difficult for BIIB to mitigate.”

In addition, the firm believes Skyclarys’ potential is well understood. “We like the Reata deal and see Skyclarys as an important and viable near-term growth driver,” the analysts added. “However, over the next 12 mos, we see limited potential for meaningful upside to ests.”

Overall, UBS likes new CEO Viehbacher’s strategy and execution but they do not expect the fruits of this labor to be realized in the stock in 2024 and so expect investors to “opt for higher-growth names with value-inflecting readouts.”