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Analysts’ Recommendations for Biogen in October 2017

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Recent developments

In October 2017, Biogen (BIIB) and Eisai expanded their existing agreement on the joint development and commercialization of Alzheimer’s disease therapies under investigation. According to the terms of the agreement, Eisai has the option to co-develop and co-commercialize Biogen’s aducanumab for the treatment of Alzheimer’s disease patients. The present expansion of the agreement allows both companies to use their respective geographic strength for commercialization and then share the respective profits generated from the sales of aducanumab. Biogen is subject to receive 55% and 68.5% of potential profits from the sales of the drug in the United States and Europe, respectively. Also, Eisai will receive 80% of the potential profits in Asian (excluding China and South Korea) markets.

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Analysts’ recommendations

Of the 30 analysts tracking Biogen in October 2017, seven recommended “strong buy,” 14 recommended “buy,” and nine of them recommended “hold.” There were no “sell” ratings.

Around ~70% of the analysts recommended some form of “buy” rating to Biogen in October 2017. On October 25, 2017, Biogen had a consensus 12-month target price of $357.38, which represents a 13.6% return on the investment over the next 12 months. The iShares Russell 1000 Growth ETF (IWF) invests ~0.52% of its portfolio in Biogen.

Competitors’ ratings

Of the 24 analysts tracking BioMarin Pharmaceutical (BMRN) in October 2017, around ~79% recommended some form of “buy” rating. On October 24, 2017, BioMarin Pharmaceuticals had a consensus 12-month target price of $113.14, which represents a 31.1% return over the next 12 months.

Of the 21 analysts tracking Alexion Pharmaceuticals (ALXN) in October 2017, around ~86% recommended some form of “buy” rating. On October 24, 2017, Alexion Pharmaceuticals had a consensus 12-month target price of $164.10, which represents a 20.1% return over the next 12 months.

Of the 21 analysts tracking Pfizer (PFE) in October 2017, around ~57% of the analysts recommended some form of “buy” rating. On October 24, 2017, Pfizer had a consensus 12-month target price of $38.35, which represents a 6.1% return over the next 12 months.

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