Biogen Makes Gene Therapy Splash as Street Wonders What's Next

  • Acquisition seen as diversifying ahead of Alzheimer’s data
  • Other moves necessary to ‘move the needle,’ Jefferies says
A technician prepares a sample inside a laboratory in Hong Kong.Photographer: Anthony Kwan/Bloomberg
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Biogen Inc.’s plan to buy gene therapy developer Nightstar Therapeutics Plc brings a much needed deal to help diversify away from its high-risk Alzheimer’s drugs, but the pact left some on Wall Street craving more.

The $877 million dealBloomberg Terminal is in-line with management’s promiseBloomberg Terminal to diversify its drug portfolio with later-stage assets and take some of the risk off next year’s closely watched catalyst -- late-stage data for the Alzheimer’s treatment aducanumab. Analysts including Jefferies’s Michael Yee said Biogen still needs to do more to move the needle.