Expanding Global Healthcare And Diagnostics Infrastructure Will Drive Future Growth

Biogen’s consensus price target was modestly raised as analysts highlighted strong Q2 performance, advancements in its neuro portfolio and pipeline, and ongoing portfolio refocusing, offsetting medium-term growth concerns and regulatory risks; the new fair value is now $171.96.

Analyst Commentary

• Bullish analysts highlight strong Q2 performance, particularly in Leqembi and the MS franchise, combined with solid sales across other programs, supporting upward revisions in price targets.
• Advancements in the pipeline, notably the progression of salanersen for Spinal Muscular Atrophy and collaborative candidates like BIIB142 with C4 Therapeutics, present attractive long-term growth opportunities in diseases with unmet need.
• Bullish analysts cite Biogen’s portfolio refocusing and a catalyst-rich pipeline, especially in Immunology & Inflammation (I&I) and neuro-focused assets, as key drivers for future appreciation and reduced downside risk approaching 2026.
• Bearish analysts maintain that, despite beats and raised guidance, Biogen’s medium-term growth prospects remain lackluster, with commercial opportunity in Alzheimer’s therapies seen as limited relative to the market’s potential.
• Potential regulatory overhang arises from FDA-published safety signals for Leqembi, but analysts expect limited impact beyond possible label updates, with risks broadly recognized and already priced into shares.

What's in the News

• The FDA accepted Biogen’s IND for BIIB142, a degrader of IRAK4, to be developed for autoimmune diseases; C4 Therapeutics will receive a $2 million milestone payment upon trial dosing.
• Phase 3 global trials of zorevunersen (Dravet syndrome) are advancing, with evidence supporting its potential as the first disease-modifying treatment; Biogen retains commercialization rights outside North America, where the therapy has received multiple FDA and EMA designations.
• LEQEMBI (lecanemab), Biogen’s Alzheimer’s therapy, launched in Austria and pending in Germany, following EC approval based on positive Phase 3 data showing a 31% reduction in clinical decline; FDA review of a subcutaneous autoinjector formulation is ongoing.
• Biogen is investing an additional $2 billion in manufacturing at North Carolina’s Research Triangle Park to expand infrastructure for late-stage clinical programs, including enhanced antisense oligonucleotide capabilities.
• Biogen has begun Phase 3 studies for felzartamab in primary membranous nephropathy and omaveloxolone in pediatric Friedreich ataxia, and announced positive Phase 3 results for dapirolizumab pegol in lupus and higher-dose nusinersen in spinal muscular atrophy.

Valuation Changes

Summary of Valuation Changes for Biogen

• The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $169.44 to $171.96.
• The Consensus Revenue Growth forecasts for Biogen has fallen slightly from -2.1% per annum to -2.1% per annum.
• The Future P/E for Biogen remained effectively unchanged, moving only marginally from 14.85x to 15.02x.