Goldman Sachs Group, Inc.: Leqembi and R&D pipeline support revenue and profit growth structural changes, giving Biogen (BIIB.US) a "buy" rating.

Goldman Sachs Group, Inc. has given a "buy" rating to Biogen Inc. (BIIB.US) with a target price of $225 after meeting with the management team. Goldman Sachs Group, Inc. stated that Biogen's management emphasized the company's shift in culture towards a focus on research and development and cost control, which is part of their strategy to offset the decline in the multiple sclerosis business and drive growth. Key catalysts include: (1) Leqembi, their subcutaneous induction therapy expected to be approved in the first half of 2028, which could weaken Eli Lilly's Kisunla in terms of dosing frequency competition as the market shifts towards earlier treatments (with phase III clinical trials for Alzheimer's disease starting in 2028) and using blood diagnostics as a triage tool and eventually for diagnosis; (2) the pipeline, particularly the drug targeting tau BllB080 (with phase II data to be announced in mid-2026 to show its impact on cognitive function), Biogen's advantageous position in the treatment of lupus with multiple mechanisms (the company will focus on litifilimab's phase III data in systemic lupus erythematosus, to be announced in the second half of the year), and the CD38 monoclonal antibody felzartamab, which management sees as an underestimated opportunity with phase III data to be announced starting in 2027. Management also mentioned the phase III drug salanersen for treating spinal muscular atrophy, a new generation Spinraza that is effective in post-gene therapy patients and can be dosed annually. In summary, Goldman Sachs Group, Inc. believes that Biogen is poised for a turning point this year, thanks to the catalytic effect of their pipeline and Leqembi, as well as strict cost control and a rational business development strategy prioritizing early rare disease and/or immunology assets.