Needham analysts downgraded Biogen (NASDAQ:BIIB) from Buy to Hold, citing limited upside potential for the stock over the next year. The decision was based on slower-than-expected growth from new products and a lack of significant pipeline developments in the near term.
Leqembi, a key Alzheimer’s treatment in Biogen’s portfolio, was projected to grow at a slower pace, with physician feedback indicating a gradual adoption. As a result, the analysts lowered 2025 and 2026 Leqembi sales estimates, placing them significantly below consensus forecasts. Revenue was not expected to return to growth until 2026, with the company likely experiencing a decline of 1.6% in 2024 and flat performance in 2025. This was attributed to the ramp-up of new product launches—Leqembi, Skyclarys, and Zurzuvae—struggling to fully offset declines in the base business.
Biogen’s near-term pipeline also offered limited catalysts, with only Litifilimab’s two Phase 3 studies in systemic lupus erythematosus (SLE) expected to deliver results within the next year. Even positive outcomes from these trials were estimated to have a modest impact on the stock. While longer-term growth potential remained intact, supported by promising pipeline developments and further advancements in key product launches beyond 2026, the lack of short-term drivers prompted a more cautious outlook.