The stock of the Cambridge, Mass., company recently traded at $385.81, down 2.5%. The shares leaped 38% on the Food and Drug Administration approval, reported Monday.
Bank of America analyst Geoff Meacham lifted his rating from underperform and lifted his price target to $400 from $235.
“Our prior view was not correct: The accelerated approval of aducanumab [the Alzheimer’s drug] was a surprise to us, not the least of which reflects the generally open label, which doesn’t restrict access to patient subtypes,” he wrote in a commentary.
To be sure, Aduhelm -- the brand name of the treatment -- "is likely to disappoint commercially given confusion over the benefit and payer pushback,” Meacham said.
Bloomberg News reports that Biogen has priced the drug at $56,000 a year.
Baird analyst Brian Skorney raised his rating from underperform and raised his price target to $382 from $216.
“Although we certainly disagree with the decision, FDA approval of Aduhelm deals a fatal blow to our bear thesis,” he wrote.
Lilly shares were recently off 1.9% at $218.22. They had jumped 10% on Monday.
In other recent drug news, the U.S. Supreme Court last week declined to hear Johnson & Johnson’s (JNJ) - Get Free Report appeal of a $2.1 billion penalty from a Missouri court that linked ovarian cancer to its talc products.
The decision leaves Johnson & Johnson liable for at least $2.1 billion in payments to 22 women.