|Bid||217.07 x 800|
|Ask||217.18 x 900|
|Day's Range||216.49 - 226.80|
|52 Week Range||216.49 - 388.67|
|Beta (3Y Monthly)||1.69|
|PE Ratio (TTM)||10.04|
|Earnings Date||Apr 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||380.14|
Former Aetna CEO Mark Bertolini joins "Squawk Box" to talk about the state of the health care industry. The discussion touches on how the U.S. can improve its system, socialized medicine, and the recent Biogen Alzheimer's trial cancellation.
Shares of pharmaceutical giant Biogen Inc. plunged 28% on Thursday morning after the drugmaker said it would discontinue its Phase 3 trials of aducanumab, an investigational drug designed to treat symptoms of early Alzheimer’s disease.
Biogen's BIIB March 21, 2019, share price drop of 29.2% on news that it has discontinued late-stage trials of an Alzheimer's treatment hurt few asset managers more than Pasadena-based PRIMECAP Management Company.
Biogen and Japanese pharma Eisai announced a new study in Alzheimer's disease treatment Friday following a high-profile failure on Thursday that sent Biogen stock into a tailspin.
The stock market rallied as Apple, Amazon and other big techs soared. The Boeing 737 Max faces a criminal probe. Biogen gave up on an Alzheimer's drug.
Mizuho Securities analyst Salim Syed downgraded Biogen from Buy to Neutral and slashed the price target from $416 to $235. UBS analyst Carter Gould downgraded Biogen from Buy to Neutral and reduced the price target from $395 to $242. Morgan Stanley analyst Matthew Harrison downgraded shares from Overweight to Underweight and slashed the price target from $401 to $210.
Biogen stock was falling again, as more analysts downgraded the shares a day after the failure of its Alzheimer’s treatment led to a bitter 29% plunge.
Biogen (BIIB) and its Japanese partner, Eisai discontinue two late-stage studies evaluating aducanumab, in patients with Alzheimer's disease.
Investing in biotech stocks has its up days and its down days. For investors in Biogen (NASDAQ:BIIB) -- and more importantly millions of Alzheimer's patients around the world -- yesterday was a down day. On Thursday, Biogen stock plunged more than 30% on the cancelation of stage 3 clinical trials for a blockbuster Alzheimer's medication.Source: Shutterstock The massive drop was truly an unsettling surprise for BIIB shareholders as the drug was seen as a multi-billion blockbuster and game-changing medication for treating the disease. It really did come out of nowhere. The question now is whether to cut bait or fish. Was the drop enough to get investors excited about Biogen stock again?Given its huge revenue drivers, now cheaper price and still large pipeline, the answer is a resounding yes.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Happened at Biogen?Biotech stocks trade based on expectations. Something positive happens and then investors send the stock skyward and wait for the next big event to occur. It's all about what's coming down the runway. Expectations build upon that. This is true for large biotech stocks as well.For Biogen, the expectation build-up had to do with its Alzheimer's drug candidate aducanumab. The drug was in the class of monoclonal antibody medications. Basically, aducanumab was designed to break down the beta-amyloid plaques that can build up in the brain. These amyloids interfere with communication between brain cells and cause Alzheimer's and mild dementia. Back in 2014, BIIB saw some serious success with aducanumab during an early-stage study. It actually seemed to reduce the build-ups. * 7 Retail Stocks That Will Continue to Rebound in 2019 Thanks to this very positive early trial, Biogen decided to skip over smaller phase 2 studies and move the medication into larger and more advanced stage 3 testing. The idea was that Biogen could skip through the process and land a Food and Drug Administration (FDA) approval much faster. And there was a good chance for that considering how well it did early on.For Biogen stock, this would have been a major win on several fronts.For starters, there have not been any new Alzheimer's therapies approved in more than 15 years. meanwhile, the Alzheimer's Association pegs more than 5.8 million Americans currently living with the disease. Biogen was looking at a potential blockbuster with huge revenue implications. And it potentially needs that revenue to fill the coming declines in its multiple sclerosis portfolio.Unfortunately for BIIB and Alzheimer's patients, they'll have to wait a bit longer.Biogen and its partner Eisai reported that they would discontinue two late-stage trials for the drug after doing a futility analysis. An independent data-monitoring committee came to the conclusion that aducanumab was "unlikely to meet the primary endpoints" in either study.With expectations for the company to score a major blockbuster, investors abandoned Biogen stock. BIIB fell 30% -- or $90 per share -- and had its worst day of trading in nearly 2 decades. Biogen Stock May Be Worth SnaggingBiogen stock's loss was tremendous and goes to show just how much investors were valuing the drug as part of BIIB's future prospects. But perhaps, investors have taken Biogen down too much on the news.For starters, Biogen isn't a fly by night clinical-stage biotech stock. It's just the opposite. The firm has a portfolio of some pretty big blockbusters already. Thanks to winners like Spinraza and Tysabri, BIIB's portfolio managed to see a 10% jump in sales last year to more than $13.45 billion. Moreover, that portfolio managed to generate more than $5.3 billion in free cash flows and impressive earnings.And it's using those profits in a smart way. The key is that Biogen has been building a full pipeline to create a multi-franchise neurology portfolio. This includes its recent buyout of retinal degeneration specialist Nightstar Therapeutics (NASDAQ:NITE). So yes, losing Alzheimer's does stink, but the biotech's rich pipeline and cash flows give it plenty of wiggle room to buy or develop a pipeline. According to CFO Jeff Capello, adding up cash flows, cash on hand and its ability to leverage up and "you get a $37 billion number, which gives us a lot of capacity to add to the business."It's a song and dance we've heard plenty of times before. But Biogen has the firepower to make it work. It can buy a pipeline successfully.For that pipeline potential and drugs already producing revenues, Biogen stock is going for dirt cheap. After yesterday's 30% haircut, you can now snag the biotech firm at just 8.7x free cash flows and a trailing P/E of just 10.50. That's bargain-basement pricing for a biotech leader. For example, Amgen (NASDAQ:AMGN) can be had for a P/E of 14, while Gilead Sciences (NASDAQ:GILD) is closer to 16. Nibbling at Biogen StockGiven the steep drop and perhaps overreaction that sent Biogen stock into extreme value territory, investors with a longer-term timeline may want to consider snagging some of the firm's shares. * 7 Beaten-Up Stocks to Buy as They Reverse Course The lost of the Alzheimer's drug does hurt, but BIIB still has plenty in the tank to get it through. And with today's valuations, there's a decent margin of safety associated with shares. The time to start buying could be now.Disclosure: At the time of writing, Aaron Levitt held a long position in the iShares NASDAQ Biotechnology Index (IBB) -which holds GILD, BIIB and AMGN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Biogen Stock Fell Too Far on Unfortunate News appeared first on InvestorPlace.
On Thursday, Biogen (BIIB) announced that it will discontinue its Phase 3 ENGAGE and EMERGE trials for Alzheimer’s Disease (AD) drug aducanumab. Biogen’s ENGAGE and EMERGE trials were launched in 2015 and since that time there have been substantial advancements in the understanding of what causes AD. Understanding of what is damaging neurons has evolved and a consensus has emerged that it is toxic oligomers rather than plaques and monomers that cause the disease.
Eisai, which is partnering with Biogen Inc (NASDAQ: BIIB) on Alzheimer's research, announced the initiation of a global Phase 3 clinical study Thursday, dubbed Clarity AD/Study 301, of BAN2401, which is being evaluated in patients with early Alzheimer's disease. BAN2401 is a monoclonal antibody that acts against beta-amyloid protein that forms clumps called plaques in the brain, impairing connections between brain cells and triggering inflammation, leading to cell death, both of which are responsible for the onset of Alzheimer's.
SVB Leerink analysts cut their price target on shares of Biogen Inc. to $247 from $341 on Friday. "The uncertainties about the outlook for their MS and SMA franchises are significant," wrote analysts led by Geoffrey Porges, who maintained their market perform rating on the stock. Porges said he and his team "assume that the company takes the responsible decision to terminate all further investments in beta amyloid-directed medicines (which has not occurred), and saves their investors the cash and saves patients and investigators from the burden of such studies. If Biogen does not make this decision, then our adjusted expense forecast could be too low, with further negative effects on our valuation even compared to our new PT." However, despite doubts about the efficacy of drugs based on the amyloid hypothesis, Biogen is forging ahead with its next amyloid-based trial; drug development partner Eisai Co. Ltd. announced on Friday the initiation of another Phase 3 trial, this time evaluating BAN2401, a monoclonal antibody that binds to neutralize and eliminate toxic beta amyloid aggregates. Biogen's stock, which fell 1.1% in premarket trade Friday, plunged 29% on Thursday after the company announced it was discontinuing trials for Alzheimer's drug aducanumab. Shares of the drugmaker have fallen 25% in the year to date, while the S&P 500 has gained 13.9%.
Former Aetna Chairman and CEO Mark Bertolini says investors currently are trading "on a basis that says, 'does this drug work today? Did this trial pass today?''"
Analysts at UBS on Friday downgraded shares of Biogen Inc. to neutral from buy, while cutting their price target on the stock to $242 from $395. "The failure of aducanumab leaves Biogen with a lack of visibility around a path back to top-line growth, and increasingly present threats to the base-business that investors had been willing to look past given the promise of Alzheimer's," analysts led by Carter Gould wrote. He cited competition to spinal muscular atrophy drug Spinraza from Roche Holding's ridiplam and threats to a 2028 patent on the company's multiple sclerosis drug Tecfidera, which is under review by trademark officials after competitor Mylan N.V. filed a patent challenge in July. Biogen's stock, which fell 1.5% in premarket trade Friday, plunged 29% on Thursday after the company announced it would be discontinuing Phase 3 trials for aducanumab, its much-hyped Alzheimer's drug. Shares of the drugmaker have fallen 25% in the year to date, while the S&P 500 has gained 13.9%.
Yes, the acquisition was ambitious by the firm’s recent standards, but Biogen needs more than that to move the dial, ideally in the form of both a near-term sales boost and long-term potential. That won’t come cheap in a buoyant market, and Biogen isn’t exactly in a strong negotiating position. SAREPTA THERAPEUTICS INC.: Syed also suggested Sarepta, which has a marketed drug for a rare muscle-wasting condition and other treatments on the way.
Exactly a month later, that call looks prescient as Biogen lost more than a quarter of its market value Thursday after saying the drug was unlikely to be effective and research will be halted. The last event that prompted an equally pronounced response was Apple’s 52% plunge in September 2000 after it warned that its quarterly profit would fall well short of estimates. There still may be more negative news to come for Biogen as we’ve already seen three additional downgrades overnight, including Morgan Stanley cutting the stock to sell.
Though some Massachusetts startups and researchers are maintaining a dogged determinedness in targeting a protein called amyloid beta, many are calling Biogen's aducanumab failure the last nail in the coffin.
STOCKSTOWATCHTODAY BLOG Numbers By Barron’s is a two-minute financial podcast with three vital numbers to start your morning. Available on iTunes, Apple Podcast, Stitcher, and wherever you get your podcasts—as well as on your Amazon Alexa smart speaker Three numbers to start your day: 30% is how much biotech company (BIIB)’s stock fell on Thursday The company said it would stop tests of a drug meant to treat Alzheimer’s disease.
Eisai Co Ltd on Friday said it has begun phase 3 clinical trials of Alzheimer's treatment BAN2401, a day after the Japanese drugmaker and U.S. partner Biogen Inc scrapped trials for another Alzheimer's drug, aducanumab. On Friday, Eisai was untraded, flooded with sell orders at 7,565 yen, almost 17 percent lower than its previous close. The demise of aducanumab came after independent experts determined the trials had little hope of succeeding, marking the latest setback in the quest to treat a mind-wasting disease that affects 5.7 million people in the United States alone.
Japan's Nikkei fell in choppy trade on Friday as financial stocks languished, reflecting more cautious U.S. monetary policy, while the drug sector tumbled after Eisai and Biogen said they will end their Alzheimer's drug trials. Financial stocks faced a sell-off after the spread between the three-month Treasury bill yield and the 10-year note yield shrank to its narrowest level since August 2007 on Thursday in the wake of the U.S. Federal Reserve's decision to cease tightening monetary policy.