Biogen's (BIIB) new Alzheimer's drug, BIIB080, has mid-year results coming up and its success is uncertain, but even if it underperforms, the company has other programs and treatments that could drive growth, RBC said in a note Thursday.

The analysts said they remain cautious about BIIB080's chances of success after reviewing earlier data and trial details. Prior results were mixed, and the drug's intrathecal delivery method could limit how easily it can be used at scale.

However, Biogen does not believe general expectations are high and it considers the program high risk, suggesting negative results may not hurt the stock much. Positive data, on the other hand, could offer upside. The company also has growth drivers like monoclonal antibody felzartamab, lupus progress, the early Alzheimer's medication Leqembi, and Eli Lilly's TB3 trial, which could benefit Biogen's Alzheimer's portfolio, the analysts added.

"We believe downside on negative data would be relatively capped (-3%-5%) given low expectations, whereas upside on favorable results may also be somewhat limited (+7%-8%)" because there are still questions about how easily the drug can be delivered and scaled, the analysts said.

RBC has an outperform rating and a $233 price target on Biogen.

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