Biogen Inc Stock Downgrade

Investing.com — Stifel has downgraded Biogen Inc (NASDAQ: BIIB) stock from buy to hold, citing challenges the company faces during a difficult year influenced by the slow rollout of its Alzheimer’s drug, lecanemab.

Despite initial expectations for a gradual launch to manage infrastructure issues, progress has been slower than anticipated.

> “We’re downgrading BIIB even after the stock has been a poor performer in 2024,” said the analyst.

> “We see shares rangebound until something else changes the narrative, and it’s less clear what this will be in 2025.”

Regulatory delays are further impacting Biogen, with approvals for subcutaneous (SQ) formulations of lecanemab now pushed to 2025 for maintenance and 2026 for initiation. This is compounded by other challenges, including a declining base business, a softer-than-expected launch for Skyclarys, and limited clinical catalysts in 2025.

Skyclarys, viewed as a critical growth driver, will be closely observed in 2025, as Biogen aims to demonstrate its potential to exceed $1 billion in revenue. Meanwhile, there are no major clinical milestones expected aside from possible developments for Litifilimab in systemic lupus erythematosus.

Investor focus is now on how well the drug is launched and the potential for significant business development deals to revitalize its pipeline.