Company

Bank

Analyst

Coverage

Opinion

Wk chg

2/8 cls

Biogen Idec Inc. (NASDAQ:BIIB)

BMO Capital Markets

Jim Birchenough

Price target

Market perform

5%

$164.44

Canaccord

Ritu Baral

Price target

Hold

Jefferies

Thomas Wei

Price target

Buy

Stifel, Nicolaus

Joel Sendek

Price target

Buy

Birchenough raised his target to $158 from $147 after Biogen Idec said it will acquire full rights and IP for multiple sclerosis drug Tysabri natalizumab from partner Elan Corp. plc (NYSE:ELN). Biogen Idec will pay $3.3B in cash up front, terminating the partners' current 50/50 profit split. Birchenough said the deal is "clearly favorable" to Biogen Idec in the near term, with an improvement in gross margins of 80-90% over the next five years, potential for operational and tax synergies, more streamlined control of Tysabri and greater economic interest in potential expanded indications. Overall, Biogen Idec expects the transaction to be accretive to non-GAAP EPS by $0.50-$0.60 in 2013 and by $0.65 to $0.80 in 2014. Birchenough raised his 2013 non-GAAP EPS estimate to $7.90 from $7.35 (see "Rethinking Elan, Again, A13).

Baral raised her target to $163 from $139 on the Tysabri deal. She raised her Tysabri revenue estimates to $1.64B from $1.24B in 2013 and to $2.2B from $1.87B in 2014.

Wei raised his target to $201 from $187 on the Tysabri deal. He raised his EPS estimates to $6.75 from $6.49 in 2013 and to $9.64 from $9.43 in 2014.