Deutsche Bank reiterates sell on Biogen Idec (BIIB ) and cuts target.
Analyst Jennifer Chao estimates it could take several months just to compile and sift through patient data, complete challenging technical/statistical analysis, all of which are subject to careful regulatory review.
Given the complex nature of the review, she doesn't expect meaningful updates in the near- to medium-term. She recommends investors stay on sidelines until visibility on Tysabri justifies signficant risks.
Chao cuts her $38 target to $33, 19 times $1.73 2006 earnings per share. She believes her 19 multiple is justified as uncertainty related to Tysabri could cause Biogen Idec shares to languish.