Investing.com — Piper Sandler downgraded Biogen Inc (NASDAQ:) from “overweight” to “neutral,” given a difficult transition interval for the biotech agency. The brokerage hacked the price goal from $315 of $138, expressing issues over Biogen’s near-term income combine and the uphill battle in constructing its Alzheimer’s illness franchise.

Biogen is in a tough balancing act “with the buildout of its Alzheimer’s disease franchise, an uphill battle in our view, while on the other hand leaning heavily into immunology-focused R&D, giving itself more of a fighting chance at driving longer-term value recovery.”

Biogen’s top-line stays closely reliant on its a number of sclerosis (MS) portfolio, which accounts for over 60% of 2024 income, together with royalties from Ocrevus. Piper Sandler flagged a number of headwinds for MS merchandise, together with competitors from biosimilars and upcoming lack of exclusivity for key medicine like Tecfidera and Vumerity.

The brokerage additionally questioned the industrial potential of Biogen’s Alzheimer’s drug Leqembi, regardless of developments like a subcutaneous auto-injector and ongoing research. “We remain cautious on the AD franchise, with key milestones still years away,” the be aware said.

Whereas highlighting the potential of Biogen’s immunology pipeline, notably dapirolizumab pegol for lupus, Piper Sandler famous that pivotal information is unlikely till 2027 or later, leaving an extended highway to income stabilization.