Barclays bails on Biogen after court ruling

The West Virginia court decision on Tecfidera threatens perhaps one-third Biogen’s (NASDAQ:BIIB) free cash flow, says analyst Carter Gould, downgrading to Equalweight from Overweight. He slashes his price target to $280 from $370. The stock closed at $271 on Friday.

While Biogen will surely appeal the West Virginia ruling, Gould says last week’s decision raises the odds of another unfavorable ruling in a pending Delaware case.

Gould then turns to Alzheimer’s treatment aducanumab: “Our conviction on aducanumab has waned in the wake of delays, a lack of clarity around points of discussion with FDA, and a seemingly less confident stance on aducanumab.”

https://seekingalpha.com/news/3584866-barclays-bails-on-biogen-after-court-ruling