Thomas Weisel upgraded Biogen Idec (BIIB
) to peer perform from underperform, after the Food and Drug Administration on Wednesday voted unanimously to recommend reintroduction of Tysabri as a treatment for relapsing forms of multiple sclerosis.
Analyst Ian Somaiya expects the FDA to approve Tysabri by March 29, with the launch date dependent on the agency's classification of the application as accelerated or standard. The analyst expects the return of Tysabri to enable the company to trade in line with its large cap peers. Somaiya also believes the drug, despite its narrower label and restricted distribution, could generate peak sales in excess of $1 billion. The analyst sees $2.12 2006 earnings per share (EPS) and $2.33 EPS in 2007.