HSBC Downgrades Biogen Inc. (BIIB) to Reduce Despite Pipeline Progress

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On December 10, TheFly reported that HSBC downgraded BIIB from Hold to Reduce, and lowered its price target to $143, citing concerns that BIIB’s reliance on royalty streams and challenges in its core business could weigh on future earnings and growth. HSBC’s analysis highlighted margin pressure from declining royalty revenue and limited near-term earnings improvement potential, despite other progress at the company.

Despite this downgrade, Biogen Inc. (NASDAQ:BIIB) has reported a series of recent operational and clinical developments: LEQEMBI (lecanemab), the company’s Alzheimer’s disease therapy developed with Eisai, was included in China’s new Commercial Insurance Innovative Drug List on December 8, which is expected to expand market access and potential patient coverage starting January 1, 2026.

Eisai and BIIB have presented data at scientific meetings such as CTAD 2025 on December 3, demonstrating continued benefits of LEQEMBI maintenance treatment in early Alzheimer’s disease, supporting its clinical value.

Biogen Inc. (NASDAQ:BIIB) and Stoke Therapeutics presented long-term data for zorevunersen on December 5, an investigational treatment for Dravet syndrome, showing durable seizure reductions, highlighting the business’s progress in rare neurological disorders.

According to HSBC, while BIIB has reported clinical and market access progress on several therapies, these advances may not be sufficient on their own to fully counteract broader structural challenges, particularly expected declines in royalty streams and pressure on legacy revenue drivers, which could constrain earnings growth and margin expansion relative to expectations.

Biogen Inc. (NASDAQ:BIIB) is a leading American multinational biotechnology company with a foundational focus on pioneering treatments for complex and devastating neurological and neurodegenerative diseases.

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