Biogen stock surges after drug lecanemab shows signs of slowing Alzheimer's disease

The shares of Biogen surged Wednesday after it was reported that its drug lecanemab showed signs of 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% over an 18 month period.

Today s announcement gives patients and their families hope that lecanemab can potentially slow the progression of Alzheimer's disease and provide a clinically meaningful impact on cognition and function, according to Michel Vounatsos, CEO of Biogen. The study shows that the removal of aggregated amyloid beta in the brain is associated with a slowing of disease in patients at the early stage of the disease. Biogen said the incidence was within expectations, even though some participants had experienced brain swelling or brain bleeding. 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. and Europe.

In March, the Japanese pharmaceutical giant submitted application data to Japan's Pharmaceuticals and Medical Devices Agency with the aim of getting 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 the 2022 fiscal year, which ends March 31, 2023. Esai will present the results at the Clinical Trials on Alzheimer's Congress on November 29, 2022, and publish the findings in a peer-reviewed medical journal.

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

According to the Alzheimer's Association, 6.5 million Americans age 65 and older are living with Alzheimer's in the year 2022. About 73% are over 75 and older. By 2050, the number of people age 65 and older with Alzheimer's could grow to 12.7 million, with 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.