Piper Sandler analyst Christopher Raymond calls Biogen’s “lack of” communication around a “clearly a meaningful delay” of the most important aspect of the 2020 Biogen story, the submission of aducanumab’s Biologics License Application for the treatment of Alzheimer’s disease, “baffling.” Despite having numerous chances to provide color, management demurred on today’s conference call, leaving investors no choice but to speculate that FDA’s view of this drug’s clinical dataset “may not be quite as rosy as management’s view after all,” Raymond tells investors in a post-earnings research note. This “may be the wrong conclusion, but whether it is or isn’t is knowable only by management, FDA and God at this point,” the analyst adds. Raymond notes that aducanumab contributes $80 per share in his sum-of-the-parts calculation, and that removing it yields a per share valuation in the mid-$250s. The analyst remains cautious on the shares and “firmly on the sidelines” with a Neutral rating and $307 price target.
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