Biogen Inc. (BIIB) Taps RNAi Therapy in City Therapeutics Deal

Biogen Inc. (NASDAQ:BIIB)’s recent partnership with City Therapeutics, Inc. to develop RNAi therapies for central nervous system diseases has fueled a 6% rise in its share price over the past month, reflecting renewed investor optimism. This move comes amid a broader rally in the tech sector driven by favorable policy shifts and positive market sentiment, as major indices have also trended upward.

Biogen Inc. (NASDAQ:BIIB) Taps RNAi Therapy in City Therapeutics Deal, Stock Up 6%

A scientist studying a petri dish with magnifying glass in a laboratory setting.

The collaboration underscores Biogen Inc. (NASDAQ:BIIB)’s strategic pivot toward innovative treatments, expanding its pipeline beyond established Alzheimer’s therapies like LEQEMBI. Analysts suggest this could strengthen BIIB’s long-term growth prospects and help offset challenges such as declining multiple sclerosis revenues and mounting competition from generics and biosimilars.

Despite the recent uptick, Biogen Inc. (NASDAQ:BIIB)’s three-year total shareholder return remains down 37.09%, significantly underperforming the broader US biotech industry, which gained 12.9% over the past year. The company’s current share price still trades at a 36.67% discount to the analyst consensus target of $171.95, highlighting persistent investor caution regarding future earnings and revenue growth. While the RNAi collaboration may gradually shift market perceptions, BIIB faces ongoing pressure to deliver on its innovation-driven strategy and regain industry momentum.

While we acknowledge the potential of BIIB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than BIIB and that has 100x upside potential, check out our report about this cheapest AI stock.

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