Biogen Shares Move On Analyst's Ratings

10 September 1997

After Merrill Lynch analyst Eric Hecht lowered his rating on Biogen tointermediate-term neutral from accumulate and also reduced his earnings estimates for this year and next, the company's shares closed down (see page 8) in trading that was three times the average daily volume.

Noting that on the current stable of product candidates it seems unlikely that any new sources of product revenues will appear until 2001, along with concerns over dull US and slow European sales of Avonex (interferon beta-1a), Mr Hecht also lowered his long-term rating on the company to accumulate from buy.

However, David Stone of Cowen & Co felt the market's over-reaction to the downgrade created a buying opportunity. Most issues in the Merrill report are not news, he said; the previous share price had already reflected those concerns. With few worries about the firm, Mr Stone has maintained his buy rating on the stock. The stock price will "continue to go up at a decent clip" over the next few years, he said.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK





Today's issue

Company Spotlight