Biogen Shares Explode on Positive Results from Alzheimer’s Drug Trial

Shares of Biogen were climbing higher on Friday after the company and Eisai announced the success of an Alzheimer’s clinical drug trial.

The Phase II study had positive results with BAN2401, an anti-amyloid beta protofibril antibody, in 856 patients with early Alzheimer’s disease.

“New data provide compelling evidence to further support amyloid hypothesis as a therapeutic target for Alzheimer’s disease,” both companies said.

“We will discuss these very encouraging results with regulatory authorities to determine the best path forward,” commented Lynn Kramer, chief clinical officer and chief medical officer, neurology, at ESALY.

Biogen’s chief medical officer, Alfred Sandrock, stated, “The prospect of being able to offer meaningful disease-modifying therapies to individuals suffering from this terrible disease is both exciting and humbling. These BAN2401 18-month data offer important insights in the investigation of potential treatment options for patients with Alzheimer’s disease and underscores that neurodegenerative diseases may not be as intractable as they once seemed.”

J.P. Morgan remarked, “Bigger picture, the data today adds to our confidence that there may indeed be a correlation between amyloid beta levels and cognitive functioning which, in our view, positions BIIB nicely for a potentially substantial wave of anticipation trade well ahead of the future binary aducanumab readouts (as we believe prevailing levels reflect minimal contribution from Alzheimer’s).”

The firm reiterated an “overweight” rating with a $400 price target.

Disclaimer: We have no position in Biogen Inc. (NASDAQ: BIIB) and have not been compensated for this article.