Biogen may gain more momentum after the biotech publishes new data from its latest investigational drug treatment trials, according to Truist Securities. The investment bank upgraded Biogen to buy from hold in a report out Monday, lifting its 12-month price target to $235 from $190, implying 18% upside from Friday's close. "Our increasingly constructive view on the outlook for Biogen shares is driven by (1) expectations for the unveiling of differentiated, clinically meaningful [phase-two] data with Diranersen (BIIB080), the company's anti-tau [Alzheimer's disease] asset at next week's AAIC conference, and (2) what we see as an attractive risk/ reward ahead of approaching key de-risking pivotal data readouts," analyst Danielle Brill wrote. The Alzheimer's Association International Conference (AAIC) is in London through July 15. Biogen is slated to present data from the phase-two trial of its investigational antisense oligonucleotide (ASO) therapy for Alzheimer's disease on July 14. And, there are already several signs that the results will have a positive effect on shares, according to Brill. "While specific details were not shared due to AAIC's strict embargo policy, [management] body tone read very positive to us," the analyst wrote. "We also believe the bar for advancing this program was high, so the fact that BIIB is planning a [phase three] trial, signals to us that the evidence was compelling." The company is also likely to clock more sales and see shares surge if trials for Felzartamab, an investigational kidney disease treatment, continue to yield strong results, according to Truist. "Felzartamab de-risking [is] also on the horizon [with phase three antibody-mediated rejection] data expected mid-2027," Brill wrote. Phase-two] data [is] supportive of incorporating risk-adjusted revenues …into our forecasts." Truist's view matches the Wall Street consensus, where 23 of 38 analysts covering Biogen rate it a buy or strong buy, LSEG data shows. Shares have risen 13% year to date.
