Biogen could become a strategic asset – Jefferies

Biogen could become a strategic asset – Jefferies

Written by Sam Bogda

A Jefferies equity analyst told investors in a note on Monday that they believe Biogen (NASDAQ πŸ™‚ could become a strategic asset.

In a note focused on reading the third stage of CLARITY-AD, he stated that they believe there is a “~35% chance of reaching a p-value for success versus consensus ~25% based on our stats analysis that strength indicates the possibility of hitting even Had the CDR-SB been less than 0.4 point delta (what Aduhelm has shown).”

β€œIf the delta is positive and meaningful, we see a stock of $275; if it works we see a stock of $165-175,” the analyst added.

However, the analyst, who has a buy rating and a price target of $300 on Biogen, acknowledged that the market remains uncertain about Biogen regardless of the outcome, but that there is β€œstrategic value” in the downside scenario.

β€œWe believe BIIB can become a strategic asset at 4-5x/~$7 billion peak sales multiples over the decade (which brings the stock back to $200-250); and we note similar companies such as CELG, AGN and ALXN acquired at similar multiples ‘ said the analyst.

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