Biogen slips as Morgan Stanley downgrades on Leqembi launch
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- Biogen (NASDAQ:BIIB) shares fell on Thursday after Morgan Stanley downgraded the stock to Equal Weight from Overweight, arguing that the market launch of the company’s new Alzheimer’s drug, Leqembi, has failed to meet its expectations.
- Leqembi, developed by Biogen (NASDAQ:BIIB) with Japanese drugmaker Eisai (OTCPK:ESALF) (OTCPK:ESAIY), added $67M in sales globally, the Cambridge, Massachusetts-based biotech announced with its Q3 2024 results on Wednesday.
- “The Leqembi Alzheimer’s launch has tracked below our expectations,” Morgan Stanley analyst Terence Flynn wrote in reaction, lowering the firm’s estimates by 50% on average for the period beyond 2024.
- Flynn, who also slashed his price target on BIIB to $204 from $285 per share, added that the U.S. launch of Eli Lilly’s (LLY) rival Alzheimer’s therapy Kisunla will be another near-term headwind to Biogen’s (BIIB) drug.