Biogen stock downgraded to neutral from buy at UBS

Analysts at UBS on Friday downgraded shares of Biogen Inc. to neutral from buy, while cutting their price target on the stock to $242 from $395. "The failure of aducanumab leaves Biogen with a lack of visibility around a path back to top-line growth, and increasingly present threats to the base-business that investors had been willing to look past given the promise of Alzheimer's," analysts led by Carter Gould wrote. He cited competition to spinal muscular atrophy drug Spinraza from Roche Holding's ridiplam and threats to a 2028 patent on the company's multiple sclerosis drug Tecfidera, which is under review by trademark officials after competitor Mylan N.V. filed a patent challenge in July. Biogen's stock, which fell 1.5% in premarket trade Friday, plunged 29% on Thursday after the company announced it would be discontinuing Phase 3 trials for aducanumab, its much-hyped Alzheimer's drug. Shares of the drugmaker have fallen 25% in the year to date, while the S&P 500 has gained 13.9%.

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