The Cambridge, MA-based biopharmaceutical company is focused on therapies for neurological, autoimmune and hematologic disorders.
With recent weakness in Biogen's stock, Leerink is reviewing the company's pipeline for value and potential opportunity.
If Nusinersen, a drug for children with spinal muscular atrophy, receives regulatory approval, it offers significant upside to Biogen's top line with about $1.4 billion in global revenue possible by 2020, or $900 million when adjusted for probability of success, the firm said.
Nusinersen phase 2 studies in infants and children have yielded promising data to date, but Leerink maintains a level of caution.
"However, we are careful about using these data as proxies for the ongoing Phase III studies due to: (1) lack of control groups in the data shown so far, (2) small number of patients in each study, and (3) heterogeneity of Type II and III patient populations and the variable natural history of disease," the firm said in an analyst note.
Biogen stock closed down by 1.15% to $251.76 on Monday.
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Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on Biogen.
This is driven by a number of strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and growth in earnings per share.
The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BIIB