Biogen stock (BIIB) is booming amid as Wall Street speculates about a potential profit boom after a promising study detailed the company’s new Alzheimer’s drug in partnership with Japan’s Eisai.
“We think that lecanemab holds mega blockbuster potential, likely in the $6-8 billion range,” Guggenheim analyst Yatin Suneja wrote in a note to clients on Wednesday.
The two pharma companies said their drug lecanemab reduced cognitive and functional decline by 27% relative to a placebo. The findings come over an 18 month stretch in a Phase 3 study of 1,800 patients with early-stage Alzheimers.
Shares of Biogen surged nearly 50% in pre-market trading Wednesday on the development. The company’s ticker page was the most active on Yahoo Finance ahead of the opening bell.
“Today’s announcement gives patients and their families hope that lecanemab, if approved, can potentially slow the progression of Alzheimer’s disease, and provide a clinically meaningful impact on cognition and function,” Biogen CEO Michel Vounatsos said in a statement.
The FDA is currently reviewing whether to grant lecanemab conditional early approval.
An estimated 6.5 million people in the U.S. age 65 and older are currently living with Alzheimer’s, underscoring the sales potential for Biogen domestically alone.
Bill McKay, 69, who has Alzheimer?s disease, and his wife Jill, 66, are interviewed using Zoom at their home in Haslett, Michigan, U.S. June 8, 2021. Reuters TV via REUTERS
Guggenheim’s Suneja thinks Biogen is primed to benefit from an approval of lecanemab, and the stock may have further room to run, though there is a caveat for investors: Biogen didn’t create the drug alone.
“With robust function data, approval of lecanemab as the first approved treatment for AD has the potential to reach the >1M eligible patients,” Suneja explained. “If the company can secure rapid CMS reimbursement upon potential approval (this is likely based on the NCD coverage with evidence development memo), we estimate peak sales could be in the $6-8 billion. One caveat to this program vs. Aduhelm is that Eisai owns the asset and will record revenues globally (Biogen gets 45% profit split). … Biogen and Eisai will co-promote lecanemab and share profits equally, which limits the peak opportunity to Biogen. Despite this, we believe lecanemab is worth ~$100-125/share toward our net present value for Biogen.”
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Dollar Climbs; UK Bonds Jump on BOE Purchase Plan: Markets Wrap
(Bloomberg) — The dollar rose to another record after the White House talked down the prospect of weakening the currency, while UK bonds surged after the Bank of England said it would buy long-dated government bonds in whatever quantities were needed to restore order to the market.Most Read from BloombergGermany Suspects Sabotage Hit Russia’s Nord Stream PipelinesApple Ditches iPhone Production Increase After Demand FaltersAlzheimer’s Progression Slowed by Drug in Major TrialPutin’s Mobilizatio
Warren Buffett’s Berkshire Makes List of Undervalued, Stocks
The CBOE Volatility Index has skyrocketed 89% so far this year. Morningstar put together a list of stocks with one- and three-year betas of 0.8 or lower. Then it screened for stocks that are undervalued, according to Morningstar analysts’ fair value estimates.
Apple worsens selloff in beleaguered growth stocks
Bloomberg earlier reported that Apple had told its suppliers to curtail efforts to increase the assembly of its iPhone 14 lineup by as many as 6 million units in the second half of the year on disappointing demand. Other growth stocks including Microsoft Corp, Amazon.com, Google-parent Alphabet and Tesla Inc fell between 1.5% and 3% on the news. “Weaker consumer demand is to be expected when utility bills are going up, interest rates are going up, mortgage costs are going higher … discretionary spending is going to be curtailed by that,” said Patrick Armstrong, chief investment officer at Plurimi Wealth in London.
Biogen, Eisai stocks soar on landmark Alzheimer’s data, lift rivals
(Reuters) -Shares in Biogen Inc and Japanese partner Eisai skyrocketed on Wednesday, as a surprise trial success of their experimental Alzheimer’s drug was hailed as an unequivocal win by Wall Street analysts. The trial results released on late Tuesday could mark a rare victory in the search for a treatment for the memory-robbing disease after years of clinical failures. Biogen’s stock surged 46.6% to $290.99 in premarket trading, putting it on track to add over $13.5 billion in market capitalization.
NFT Trading Volumes Collapse 97% From January Peak
(Bloomberg) — Trading volumes in nonfungible tokens — digital art and collectibles recorded on blockchains — have tumbled 97% from a record high in January this year. They slid to just $466 million in September from $17 billion at the start of 2022, according to data from Dune Analytics. The fading NFT mania is part of a wider, $2 trillion wipeout in the crypto sector as rapidly tightening monetary policy starves speculative assets of investment flows.Most Read from BloombergGermany Suspects
These 2 Stock Giants Are Flirting With a Bottom; Analysts Say ‘Buy’
Anyone following stock market trends in 2022 will be well aware of the widespread drawbacks; apart from some outliers such as energy, most corners of the market have been beaten to a pulp. The main culprits are easily identified by now; a combination of a slowing economy, rampant inflation, rates hikes to halt it, and Russia’s invasion of Ukraine and the global implications are all responsible factors. Stock market giants have not been immune either and many have seen huge chunks of their valuat
Tesla bear sees a 50% plunge in the stock
One of the biggest Tesla bears on Wall Street is sticking with his views as rising global recession risks place potential pressure on the EV maker’s top and bottom lines.
These 2 Stocks Are ‘Oversold Gems’ With Over 100% Upside Potential, Says Roth Capital
Barring selected periods of relief, the inherent trend of the stock market has been resolutely negative in 2022. For investors searching for ways to boost the portfolio’s performance, there have generally been slim pickings. But if you look on the bright side of a market situation where stocks are continuously pushed further down, what you get are some low and enticing entry points. Roth Capital’s tech and communications expert Scott Searle certainly thinks that with a bit of digging, investors
You’ll Earn This Much Annually On $1.5 Million
Whether you’re saving to retire, or have just come into a nice windfall, knowing where to put your money to grow it is essential. There are multiple ways money can build interest, but how much interest does $1.5 million earn per … Continue reading → The post How Much Interest Can $1.5 Million Earn Per Year? appeared first on SmartAsset Blog.
New home sales unexpectedly jump in August
Sales of newly constructed homes came at seasonally adjusted annual rate of 685,000, up 28.8% from July’s revised pace of 532,000.
Medicare premiums are decreasing in 2023 – this is how much older Americans will save if they’re on Part B
Medicare beneficiaries will see their Part B premiums go down for the first time in more than a decade, President Biden said during a press conference on Tuesday. Monthly Part B premiums, which are currently set at $170.10 in 2022, will decline to $164.90 in 2023 – a $5.20 a month savings, or about $64 a year, according to the Centers for Medicare and Medicaid Services. The annual deductible for Part B will be $226, down $7 from $233 in 2022.