Biogen buoyed by positive comments
By Ted Griffith, CBS.MarketWatch.com
Last Update: 9:14 AM ET Nov. 20, 2002
CAMBRIDGE, Mass. (CBS.MW) -- Shares of Biogen rose 4 percent in premarket dealings Wednesday following positive comments from analysts about the biotech firm's treatment for multiple sclerosis and its new drug to fight psoriasis.
Analyst Craig Parker at Lehman Bros. upgraded his rating on Biogen's stock to "overweight" from "equal weight." The analyst, in a note to clients, said Biogen's flagship multiple sclerosis treatment Avonex has not suffered as much as expected from competition. Since March, Avonex has been under increased pressure in the United States from rival Serono's MS therapy, Rebif. No.1 pharmaceutical company Pfizer (PFE: news, chart, profile) also recently began helping Serono (SRA: news, chart, profile) promote Rebif. Nonetheless, Avonex appears to be holding its own, according to the Lehman analyst.
Parker also sees promise in Biogen's Amevive drug for psoriasis. The analyst predicted the drug will win Food and Drug Administration approval in two to three months.
"We believe Wall Street is underestimating the size of the moderate to severe psoriasis market, and that Amevive as the first to market would be the initial beneficiary of dermatologists' enthusiasm for [new biotech drugs]," Parker wrote.
Goldman Sachs also issued positive comments about the Cambridge, Mass.-based company.
"We continue to rate the shares 'outperformer' based on the sales momentum from the potential launch of Amevive in early 2003, and relatively attractive valuation for long-term investors," Goldman said in a note to clients.
Biogen's shares had slumped Tuesday following a downgrade from US Bancorp Piper Jaffray, which cited concerns about the valuation of Biogen's stock and the increased competition for Avonex, the company's primary source of revenue.
Ted Griffith is a reporter for CBS.MarketWatch.com |
