BIIB - Biogen continued as a buy at UBS despite Aduhelm agreement change with Eisai

UBS is maintaining its buy rating on Biogen (BIIB +2.2%) despite Tuesday's announcement the biotech is taking sole commercial rights to Alzheimer's treatment Aduhelm (aducanumab) from partner Eisai (OTCPK:ESALY -0.1%). The firm has a $269 price target (~36% upside based on Tuesday's close). Analyst Colin Bristow said that the Street already has a bearish outlook on Aduhelm, so the Eisai (OTCPK:ESALF) announcement shouldn't have much of an impact. Bristow cautioned that for his buy thesis to work, one of three things must occur: a less restrictive coverage determination on Aduhelm from the Centers for Medicare and Medicaid Services; positive phase 3 data on Alzheimer's candidate lecanemab; or business development that leads revenue/earnings and/or pipeline improvements. Read why Seeking Alpha contributor says that Biogen (BIIB +2.2%) is a buy.

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Biogen continued as a buy at UBS despite Aduhelm agreement change with Eisai