Friday, March 22, 2019
Shares of Biogen plummeted last week after the company halted the trial of Alzheimer's disease drug aducanumab, a medication that the company was developing in partnership with Japanese pharmaceutical company Eisai. The stock drop 29%, the lowest it has been since February of 2005.
Biogen, one of the largest biotech in the world with a market value of $36 billion, said in a statement that the decision to stop the phase 3 trial of the drug was based on the independent analysis that it would not "meet their primary endpoint." The company pointedly explained that it was not based on safety concerns.
Michel Vounatsos, chief executive officer of Biogen, said that the end of the trial is "disappointing news confirms the complexity of treating Alzheimer's disease" but also highlights, "the need to further advance knowledge in neuroscience."
Expectations had been high for aducanumab as Goldman Sachs analysts had projected at one time that sales of the drug could reach $12 billion, so the news of the termination of the trial shocked investors and Wall Street.
See Yun Li, Biogen Posts its the Worst Day in 14 Years After Ending Trial for Blockbuster Alzheimer's Drug, CNBC, March 21, 2019.
Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.