Biogen [BIIB] - Last Close: $197.79
New drug data is skyrocketing shares of this mid-cap biotech stock.
The company said late Tuesday that the experimental Alzheimer's treatment it co-developed with Eisai Co. met all of its primary and secondary endpoints in a Phase 3 trial.
Lecanemab reduced clinical decline on the global cognitive and functional scale compared with placebo by 27% at 18 months.
Eisai, Biogen's clinical partner, says it will file for traditional approval in the US, along with marketing applications in Japan and Europe before Mar. 2023.
Eisai and Biogen are co-commercializing and co-promoting the product, with Eisai having final decision-making authority.
BIIB is today's #1 S&P 500 stock, with an incredible 45.6% premarket gain on active trading volume.
My Take: It's not everyday you see a $29 billion company add $13 billion to its market-cap overnight, but an effective Alzheimer's treatment is the biotech industry's Holy Grail. This rally could put BIIB past a key resistance point at $275, so it'll be interesting to see where things go from here.
Prothena Corporation [PRTA] - Last Close: $30.93
Prothena is also rallying on the upbeat drug data from Biogen and Eisai.
The late-stage clinical biotech firm is moving higher in the premarket without any noteworthy news, and it's likely because Biogen's progress bodes well for Prothena's own Alzheimer's therapy.
Prothena currently has several potential Alzheimer's treatment in development, including its PRX012 treatment and a dual Ass-Tau vaccine for the treatment and prevention of the disease.
PRTA is one of this morning's top performers with a 61.9% gain on the Biogen news.
My Take: I don't have a PhD in chemistry, so I am not sure exactly what the chemical similarities between these drugs are. However, the market clearly seems to think the BIIB news is a good sign for PRTA's similar therapies.
