Goldman bets on Biogen's potential 'blockbuster' Alzheimer's drug
On Wednesday, Goldman Sachs (NYSE:GS) released its Americas Conviction List, adding biotech stock Biogen (NASDAQ:BIIB) to its list of companies with serious upside potential due to its pipeline of Alzheimer’s drugs.
“It is difficult to overstate the growing societal burden of [Alzheimer’s Disease], which should make the disease a key public health focus,” said Goldman analyst Terence Flynn.
“Approximately one-third of people aged 85 and older develop AD. By 2050, one new case of AD is expected to develop every 33 seconds in the United States, or nearly a million new cases per year.”
Goldman cites Biogen’s lead pipeline Alzheimer’s drug – Aducanumab – as a major catalyst for the stock moving forward. The drug, which is in phase 3 trials, could be the first disease modifying drug on the market, according to Goldman. The Wall Street giant predicts sales of the drug, if approved, could reach $12 billion.
Goldman sees 17% upside for Biogen over the next year, with a price target of $338 per share. On Wednesday, shares of Biogen rose nearly 2% during the trading session after Goldman issued its highest rating to Biogen in the form of the “conviction buy.”