Update-1 6/7/21 Biogen shares soar 38% to $395 handle as trading opens late in the day. Despite mixed opinions on the efficacy and cost of the drug many analysts and executives in the industry hail the FDA approval. It should boost the industry overall and provide a treatment option for Alzheimer Disease that did not exist until now. In follow up clinical trials we should learn more about the product and the mechanism of the disease.Use of the drug called ADUHELM (TM) could also could clarify the controversies regarding amyloid beta plaques a biomarker and its causation of the disease. Although the stock has had many skeptics and volatility over the past few years it did spike over $350 as recently as November 2020. There were at least 3 upgrades to the stock today with many analysts believing ADUHELM could a blockbuster drug.
As we mentioned earlier, the Biogen news boosted biotech stocks much in the same way as COVID vaccine breakthroughs . The IBB was up 3.44% to $158.28 and the XBI was up 4.62% to $132.61.
Biogen Approval Sparks Rally in Biotech Stocks
Despite mixed clinical results the FDA gave the go-ahead for Biogen Inc’s aducanumab. More details are to follow but for now the stock is on hold awaiting dissemination of the information. A few analysts have raised concern about the FDA’s posture toward approval of new drugs so this action may allay those concerns.The news is positive for biotech stocks that have lagged the market in 2021 reaching a peak in February.
As of 11:30 am EDT most biotech stocks were in a rally mode:
- XBI up 3.86%, IBB up 3.61%.
- Gene therapy stocks were strong across the screen: CRSP, NTLA, QURE, SRPT.
- Large caps were strong with Eli Lilly (LLY) up 9.81% to $221 as they have a clinical monoclonal antibody candidate for AD.
- Mid-caps were strong as in the longer term they have strong pipelines and some are likely M&A targets. COVID vaccine stocks were strong.