Biogen Rally Adds $11 Billion in Value on Alzheimer's Win




  • In Business
  • 2022-09-28 20:23:27Z
  • By Bloomberg

(Bloomberg) -- Biogen Inc. rose the most since November 2020 after a key clinical trial with its partner Eisai Co. showed the therapy lecanemab slowed the progression of Alzheimer's disease.

Most Read from Bloomberg

  • Apple Ditches iPhone Production Increase After Demand Falters

  • Germany Suspects Sabotage Hit Russia's Nord Stream Pipelines

  • S&P 500 Roars Back From Six-Day Slide; Bonds Surge: Markets Wrap

  • Putin's Mobilization Hits Russia's Economy in Its Weak Spots

  • Russia Declares Victory in Sham Ukraine 'Referendums'

The stock jumped 40%, reversing this year's decline and adding more than $11 billion in market value, after the clinical win. Other firms developing treatments for the disease are also higher Wednesday in the wake of the data, helping lift a gauge of biotechnology stocks to its best day since Aug. 4.

Biogen shares had been rocked over the past few years by developments around its controversial Alzheimer's treatment Aduhelm, which won approval from the FDA last year but was hit by limited coverage from Medicare. Now, analysts are turning more bullish on the company after its lecanemab trial met the main goal, with at least a trio of brokers upgrading the stock to buy-equivalent ratings as the data increases the likelihood of regulatory success.

"The reported data is pretty much a best-case scenario that not only should lead to approval and reimbursement but could make it challenging for competition (assuming any are successful) to match," Baird analyst Brian Skorney wrote in a note.

Biogen's partner Eisai soared 17% in Tokyo, while BioArctic AB, which the therapy was originally licensed from, surged more than 170%.

Other companies developing treatments for the neurodegenerative disease have gained. Eli Lilly and Co., which is studying donanemab for early Alzheimer's, climbed 7.5%, the most since December, to close at a record high level. Prothena Corp. surged 88% and Acumen Pharmaceuticals Inc. jumped 104%, each posting their biggest gains on record.

(Updates to market close.)

Most Read from Bloomberg Businessweek

  • As Home Prices Surge, Americans Are Moving to Cheaper Places

  • Mental Health Crisis Leads Hospitals to Create a New Type of ER

  • Google's Low-Tech Plan to Solve the Opioid Crisis

  • The Supreme Court Is About to Display Its Power Imbalance Again

  • Fighting Inflation at the Grocery Store, German Style

©2022 Bloomberg L.P.

COMMENTS

More Related News

Colombia Girds for Bond Coupon Shock to Cut Refinancing Risk
Colombia Girds for Bond Coupon Shock to Cut Refinancing Risk

(Bloomberg) -- Colombia is selling around $1.36 billion of bonds to repay existing US-dollar-denominated securities maturing in 2023 and 2024, even as it may...

Apollo-Backed Banamex Bidder Seeks $2 Billion From HSBC, BofA
Apollo-Backed Banamex Bidder Seeks $2 Billion From HSBC, BofA

(Bloomberg) -- A group of investors led by Mexico's Banca Mifel SA and backed by US private-equity giant Apollo Global Management Inc. are in talks with...

China Stocks Rise in US on Bet Protests Will Spur Covid Shift
China Stocks Rise in US on Bet Protests Will Spur Covid Shift

(Bloomberg) -- Chinese stocks listed in the US rose on Monday amid optimism that nationwide protests could hasten the government's shift away from the Covid ...

FTX Received Some Customer Deposits Via Bank Accounts Held by Alameda
FTX Received Some Customer Deposits Via Bank Accounts Held by Alameda

(Bloomberg) -- As everything was collapsing around him, Sam Bankman-Fried talked casually about the way FTX had accessed regulated banks otherwise out of...

Elon Musk Says Apple Has Mostly Stopped Advertising on Twitter
Elon Musk Says Apple Has Mostly Stopped Advertising on Twitter

(Bloomberg) -- Elon Musk said that Apple Inc. has cut back its advertising on Twitter Inc. and even threatened to withhold the social network from its app...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business