Biogen falls as Needham cuts to 'hold' on slow adoption of Alzheimer's drug
** Shares of Biogen BIIB.O fall ~1% to $158.41 before the bell
** Brokerage Needham cuts rating on BIIB to "hold" from "buy" citing no "meaningful source of upside" for the stock in the next year and a slow ramp of sales for its Alzheimer's drug Leqembi
** Needham says its checks with doctors and healthcare experts show Leqembi sales growth will "remain a slow grind", lowers estimates by 16% to about $205 mln for 2024
** Adds that it will likely take about 3 to 4 years before amyloid beta targeting therapies - like Leqembi and rival drug Kisunla from Lilly LLY.N - are widely adopted
** Use of these therapies requires regular brain scans and additional testing which has contributed to a slow adoption
** Brokerage says BIIB revenue should decline in low single digits in 2024, and are unlikely to return to growth until 2026, as new product launches take time to ramp up enough to offset the declining base business
** As of last close, BIIB down ~38% this year
Reporting by Bhanvi Satija in Bengaluru
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