HSBC Downgrade of Biogen: HSBC downgraded Biogen Inc. (NASDAQ:BIIB) from Hold to Reduce, lowering its price target to $143 due to concerns over reliance on royalty streams and challenges in its core business, which may impact future earnings and growth.
Recent Developments in Alzheimer's Therapy: Biogen's Alzheimer’s therapy, LEQEMBI, was added to China's Commercial Insurance Innovative Drug List, potentially expanding market access and patient coverage starting January 1, 2026, supported by positive clinical data presented at scientific meetings.
Progress in Rare Neurological Disorders: Biogen and Stoke Therapeutics showcased long-term data for zorevunersen, an investigational treatment for Dravet syndrome, indicating durable seizure reductions and progress in addressing rare neurological disorders.
Investment Perspective: Despite Biogen's clinical advancements, HSBC suggests that these may not sufficiently offset broader structural challenges, leading to a belief that some AI stocks may offer better investment potential than BIIB.
HSBC Holdings plc (HSBC) is a banking and financial services company. Its business segments include Hong Kong, UK, Corporate and Institutional Banking (CIB), and International Wealth and Premier Banking (IWPB). Its Hong Kong business comprises retail banking and wealth and commercial banking of HSBC Hong Kong and Hang Seng Bank. Its UK business comprises UK retail banking and wealth (including first direct and M&S Bank) and UK commercial banking, including HSBC Innovation Bank. The CIB segment is formed from the integration of its commercial banking business (outside the UK and Hong Kong) with its global banking and markets business. The IWPB segment comprises premier banking outside of Hong Kong and the UK, its global private bank, and its asset management, insurance and investment distribution businesses. Its customers worldwide through a network covering 58 countries and territories. Its customers range from individual savers and investors to companies, governments and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
