Biogen shares soar on Alzheimer's drug developments

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Shares of Biogen surged Wednesday's following news that its drug lecanemab showed promising signs of potentially slowing down the progression of Alzheimer's disease. The stock opened at $282.96 per share, up 43% over Tuesday's closing price.

A Phase 3 study involving 1,795 participants with early stage Alzheimer's found that lecanemab reduced cognitive and functional decline by 27% compared to a placebo over an 18-month period. 

"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. "Importantly, the study shows that removal of aggregated amyloid beta in the brain is associated with a slowing of disease in patients at the early stage of the disease."

Though some participants in the study experienced brain swelling or brain bleeding, Biogen said that the incidence was "within expectations."

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Eisai, which is serving as the lead of lecanemab development and regulatory submissions globally, will discuss the findings with regulatory authorities in the U.S., Japan and Europe. 

In March, the Japanese pharmaceutical giant submitted application data, with the exception of the latest study, to Japan's Pharmaceuticals and Medical Devices Agency with the goal of obtaining early approval for lecanemab. In July, the U.S. Food and Drug Administration accepted Eisai’s Biologics License Application under an accelerated approval pathway and granted priority review. 

The company is planning to file for traditional approval in the U.S. and marketing authorization applications in Japan and Europe by the end of its 2022 fiscal year, which ends March 31, 2023. Additionally, Esai will present the study results on Nov. 29, 2022 at the Clinical Trials on Alzheimer's Congress and publish the findings in a peer-reviewed medical journal.

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The results come after another of Biogen's Alzheimer's drugs, Aduhelm, has faced a series of setbacks. In January, Medicare said it would limit coverage of Aduhelm after its benefits had been widely questioned. 

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Biogen Inc., headquarters is shown March 11, 2020, in Cambridge, Mass. (AP Photo/Steven Senne, File) | AP Newsroom

An estimated 6.5 million Americans age 65 and older are living with Alzheimer's in 2022, according to the Alzheimer's Association. About 73% are age 75 and older. By 2050, the number of people age 65 and older with Alzheimer's could grow to a projected 12.7 million, barring the development of medical breakthroughs to prevent, slow or cure Alzheimer’s disease.

Other stocks that rose in sympathy with Biogen on Wednesday include Eli Lilly, Acumen Pharmaceuticals, Prothena Corporation and Longeveron Inc.