Biogen Inc (NASDAQ: BIIB) is falling hard early on in the pre-market this morning, and the declines may be confusing to some. That’s because the comapny released clinical results this morning that seemed to be overwhelmingly positive. With positive results in mind, stocks usually head up. So, what’s the deal here? Today, we’ll talk about:
- The results that were released;
- what we’re seeing from BIIB as a result; and
- what we’ll be watching for ahead.
BIIB Releases Clinical Results
As mentioned above, Biogen is having what is likely a surprisingly rough day in the market to many. That’s because the stock is falling after releasing what seemed to be positive clinical data. In a press release, BIIB and its partner Eisai announced the results from a Phase 2 clinical trial of BAN2401. BAN2401 is a treatment that’s being designed for Alzheimer’s diseas. At first glance, the news seemed to be overwhelmingly positive.
In fact, in the announcement, BIIB said that BAN2401 demonstrated a dose-dependent reduction in amyloid plaques as measured by amyloid PET and that the reduction was statistically significant at all doses. The company also saw that it saw significance in the treatment led to significant slowing in cognitive decline. In fact, in the highest does arm, cognitive decline slowed by up to 30%.
Where’s The Bad News In This?
While the data seems to be overwhelmingly positive, the truth of the matter is that there is some concern surrounding how this data was presented and whether or not the company really has enough of it. Ultimately, the trial had an imbalance in a certain category of patients that may have affected results. Interestingly, the best performing dose was only given to 161 patients in a clinical study that enrolled 856.
To make matters worse, the misproportion in amount of dose arm patients was unorthodox to say the least. As mentioned above, the best performing dose was given to 161 patients. However, the placebo was given to more patients than four out of five of the dosing arms, and a good majority showed statistical significance in some measures, and the exact oposite in others. At the end of the day, while the press release parsed the story as a good one, in reality, BIIB produced mixed results through an unorthodox study design. That’s going to lead to questions.
What We’re Seeing From The Stock
As investors, we know that the news moves the market. In the case of Biogen, the news seemed positive, but after digging in proved to be somewhat mixed, leading to concerns. So, while it may be surprising to see, the stock is falling for a reason. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:01), BIIB is trading at $341.78 per share after a loss of $42.78 per share or 11.15% 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 to bring BAN2401 to market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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