Citi downgrades Biogen to Neutral, questions strategy and growth ability
Citi analyst Robyn Karnauskas late yesterday afternoon downgraded Biogen to Neutral from Buy and lowered her price target for the shares to $230 from $470. The stock closed yesterday down 29%, or $93.71, to $226.88. The failure in Alzheimer's disease raises questions about Biogen's strategy and its ability to grow, Karnauskas told investors in a research note. The analyst is concerned with the company's overall strategy, including recent commentary whereby management noted that it believes in sustainability without Alzheimer's and doesn't need acquisitions, ongoing multiple sclerosis headwinds and spinal muscular atrophy competitive erosion with oral pill in adults. Further, investors are going to be critical of Biogen for not laying out its plan for interim analysis, says Karnauskas. The company's refusal to comment on an interim after mentioning it one to two years ago was not in the best interest of shareholders, the analyst contends.