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Guggenheim downgrades Biogen to neutral from buy after U.S. proposes limiting access to Alzheimer's drug

Shares of Biogen Inc. (BIIB) were down 0.9% in premarket trading on Thursday after Guggenheim analysts downgraded the stock to neutral, from buy. Analysts there cite the need to wait and see how the new rule proposing limited access to Biogen's Alzheimer's disease drug Aduhelm (and other drugs in the same class of treatments) to clinical trials in order to receive federal reimbursement plays out. They want to know what the size and timing of the trials will be and what clinical data will be produced for other experimental drugs in this class of therapies. This includes Eli Lilly & Co. Inc.'s (LLY) donanemab, Biogen's lecanemab, and Roche Holding AG's gantenerumab. "If those studies don't succeed, sentiment on the entire class could deteriorate, and it could be very challenging for Aduhelm (or any other AB-targeted drug) to gain adoption, let alone payer coverage," the Guggenheim analysts wrote. Biogen's stock is down 6.1% so far this year, while the broader S&P 500 is 0.8%.

-Jaimy Lee


(END) Dow Jones Newswires

01-13-22 0802ET

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