Biogen raised prices on MS drugs meaningfully today, says Piper Jaffray - InvestingChannel

Biogen raised prices on MS drugs meaningfully today, says Piper Jaffray

According to Wolters Kluwer Health, Biogen took “meaningful” price increases across its multiple sclerosis franchise effective January 1, 2019, Piper Jaffray analyst Christopher Raymond tells investors in a research note titled “Starts The New Year Off With Spate of Price Increases.” The timing and magnitudes of the increases are consistent with Biogen’s established pattern, adds the analyst. Raymond, however, finds the company’s increases this year notable, “especially in an environment of increasing drug pricing scrutiny on both the political and policy front.” Biogen took a price increase of 6% for Tecfidera, 3.5% for Tysabri and 2% each for Avonex and Plegridy, he explains. Given President Trump’s Drug Pricing Blueprint and his willingness to call out individual companies for price increases, the analyst thinks some investors will be surprised by Biogen’s 2019 increases. He remains a buyer of Biogen shares with an Overweight rating and $400 price target. The stock closed Monday up $7.40 to $300.92.