Biogen Inc.’s recent price increases on multiple sclerosis drugs “could provide lift into ’18,” according to RBC Capital Markets analyst Brian Abrahams, who maintained a sector perform rating for the company on Tuesday. Biogen shares rose 2.5% in Tuesday morning trade. The price changes included an 8% increase on the MS therapies Tecfidera, Avonex and Plegridy and a 3% increase on Tysabri, and “while the moves are largely consistent with the price hikes seen in 2017, they could provide potential upside to our price growth estimates, which are conservatively modeled, if net pricing pull through is fully realized,” Abrahams said. RBC had previously expected price increases of 4% on those drugs. Even so, the changes were made to the drugs’ Wholesale Acquisition Cost, or the price a drugmaker offers middleman wholesalers. Because significant rebates and discounts are typically taken off the WAC price, it’s unclear to what degree the increases will translate to Biogen’s bottom line. Last year, Biogen took one price increase for its multiple sclerosis drugs in January, Abrahams noted, and the company is likely to do the same this year, given the scrutiny on drug prices in this area. “We continue to believe BIIB will be viewed as a ‘safe’ large-cap biotech in 2018, with no major dramatic headwinds to existing franchise revenues,” Abrahams said, adding, “we also see fewer potential major upside catalysts.” Biogen shares have risen 3.4% over the last three months, compared with a 6.4% rise in the S&P 500 and a 9.6% rise in the Dow Jones Industrial Average .
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