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

GameStop Reports Revenue Decline Amid Broader Gaming Slump
GameStop Reports Revenue Decline Amid Broader Gaming Slump

(Bloomberg) -- GameStop Corp. posted the biggest quarterly drop in revenue in two years, showing the struggling video game retailer's efforts to boost...

Peru Swears In Boluarte as New President After Castillo
Peru Swears In Boluarte as New President After Castillo's 'Coup' Attempt Fails

(Bloomberg) -- Peru's Vice President Dina Boluarte took over as head of state after President Pedro Castillo triggered a crisis by attempting to dissolve...

Biden Seeks Fossil Fuel-Free Federal Buildings in Hit to Gas
Biden Seeks Fossil Fuel-Free Federal Buildings in Hit to Gas

(Bloomberg) -- The Biden administration is poised to ban federal buildings from using fossil fuels, adding the government's heft to a growing electrification...

Bruising Stock Reversal Shows How Fed
Bruising Stock Reversal Shows How Fed's Pivot May Come Too Late

(Bloomberg) -- For many investors, December has been a shocker in the stock market. After getting sucked in by a rousing seven-week rally, they've now had to...

Apollo, Franklin Among Buyers of $750 Million Citrix Debt
Apollo, Franklin Among Buyers of $750 Million Citrix Debt

(Bloomberg) -- Apollo Global Management Inc. and Franklin Templeton are among investors that bought $750 million of debt backing the buyout of Citrix Systems...

Leave a Comment

Your email address will not be published.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

Cancel reply

Comments

Top News: Business