travellinglight/iStock via Getty Images RBC Capital Markets on Wednesday said Biogen ( NASDAQ: BIIB ) shares remain attractive, even as Eli Lilly ( NYSE: LLY ) waits for a key FDA decision over the approvability of its marketing application for its Alzheimer’s therapy donanemab. Its bullish view comes despite a 12-month selloff of Biogen ( BIIB ), which won FDA approval for its Alzheimer’s therapy Leqembi developed with Eisai ( OTCPK:ESAIY ) about a year ago. In May, Lilly ( LLY ) said the FDA had scheduled an advisory committee meeting for June 10 to discuss its biologics license application for donanemab, which the regulator declined to approve under its accelerated pathway last year.
While the FDA’s advisory panels issue non-binding recommendations, with briefing documents for the meeting expected on Thursday, RBC predicted a potential FDA approval of the anti-amyloid therapy with a slightly less favorable label. Reaffirming its Outperform rating and $317 target on BIIB, RBC argued that such a scenario, which it cited as the most likely outcome, would be positive for Biogen ( BIIB ) and prompt Eli Lilly ( LLY ) to help grow the Alzheimer’s drug market. However, a negative recommendation or an outright rejection will place more burden on Biogen ( BIIB ) and Eisai ( OTCPK:ESALF ) to build the market single-handedly.
The brokerage also argued that a potential approval with a favorable label would initially put the duo at a disadvantage, which they could overcome with .
