Written by Sam Bogda
A Jefferies equity analyst told investors in a note on Monday that they believe Biogen (NASDAQ 🙂 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).”
“If 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 “strategic value” in the downside scenario.
“We 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.