Biogen Inc (NASDAQ: BIIB) is falling hard in the pre-market hours this morning, and for good reason. The company announced that it would be putting an end to a Phase 3 development program, upsetting investors and sending the stock tumbling down. Today, we’ll talk about:
- The scrapped development program;
- what we’re seeing from BIIB stock as a result; and
- what we’ll be watching for ahead.
BIIB Scraps Phase 3 Development Program
As mentioned above, Biogen is having an incredibly rough start to the trading session this morning after scrapping a development program. The news came via press release early this morning.
In the press release, the company said that it would discontinue the Phase 3 ENGAGE and EMERGE clinical trials. These trials were designed to assess the safety and efficacy of aducanumab.
BIIB designed aducanumab as a potential treatment for patients with milde cognitive impairment due to Alzheimer’s disease and mild Alzheimer’s disease dementia. Unfortunately however, the company will cease the development of the asset.
The company said that the decision to stop the trials was based on a futility analysis that was conducted by an independent data monitoring committee. This analysis showed now major safety concerns. However, the analysis indicated that the trials were unlikely to meet their primary endpoints upon completion.
In a statement, Michel Vounatsos, CEO at BIIB, had the following to offer:
This disappointing news confirms the complexity of treating Alzheimer’s disease and the need to further advance knowledge in neuroscience. We are incredibly grateful to all the Alzheimer’s disease patients, their families and the investigators who participated in the trials and contributed greatly to this research. Biogen’s history has been based on pioneering innovation, learning from successes and setbacks. Driven by our steadfast commitment to patients and our strong business foundation, we will continue advancing our pipeline of potential therapies in Alzheimer’s disease and innovative medicines for patients suffering from diseases of high unmet need.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news leads to moves. When it comes to Biogen, the news proved to be overwhelmingly negative.
After all, the company has spent a boat load of time and money to develop this asset. Unfortunately, that time and money looks like it will be wasted as it will not lead to a marketable product.
So, it’s not a surprise to see that upset investors are pushing the stock on a run for the bottom. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (8:38), BIIB is trading at $235.99 per share after a loss of $84.60 per share or 26.39% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BIIB. In particular, we’re interested in following the story surrounding the company’s continued work with other assets in its pipeline as well as its work to expand sales of already approved treatments. Nonetheless, we’ll continue to keep an eye on the story and bring the news to you as it breaks!
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