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Wells Fargo has downgraded Biogen (NASDAQ:BIIB) to equal weight, citing slowing growth for the company’s Friedreich’s ataxia drug Skyclarys and weaker-than-expected uptake of its Alzheimer’s drug Leqembi.
The investment bank said Skyclarys sales were primarily behind the downgrade, with the drug generating Q4 sales of $56M versus the consensus estimate of $64M. With market penetration at greater than 20%, “we see less room for upside surprise in the near term,” it added in its note.
Likewise, Lequembi’s growth is also uncertain, with uptake so far “disappointing,” the bank said.
“We suspect new investors may not want to come in at this point. Another important topic is duration of Leqembi treatment,” the bank added.
Wells Fargo said it also didn’t see any strong catalysts in 2024 beyond the launches.
The bank set its price target for the stock at $240.