Biogen stock. (NASDAQ:BIIB) was all but forgotten by growth investors after falling to its lowest level since 2013. That changed dramatically late last month when the biotech’s pipeline received a significant boost.
Why Did Biogen’s Stock Increase?
Biogen, co-development partner and Japanese pharmaceutical major Eisai, published good top-line findings from their Phase 3 study of lecanemab on September 27th. The experimental therapy for early-stage Alzheimer’s disease achieved its main goal: a 27% reduction in cognitive and functional impairment.
The revelation sparked a rush of purchasing for a stock (NASDAQ:BIIB) that had dropped 58% from its high in the summer of 2021. Biogen stock (NASDAQ:BIIB) surged 40% on the day of the release, trading at 15 times the 90-day average volume. The astonishing gapper wiped ten months of losses in a single day, giving biotech investors fresh optimism.
The Biogen/Eisai experiment will be used as a confirmatory study by the FDA. This implies that it will be utilized to validate the Alzheimer’s candidate’s clinical benefit when it analyzes the pair’s Biologic License Application (BLA). The regulatory authority granted the BLA priority evaluation and set a January 6th action date.
While the market waits for the critical FDA decision, further data from the lecanemab research is likely to be revealed at the Clinical Trials on Alzheimer’s Congress (CTAC) conference, which will be in San Francisco from November 29th to December 2nd.
Is Now a Good Time to Buy Biogen Stock?
Unfortunately for Biogen (NASDAQ:BIIB) stockholders, the large rise was short-lived, although this was not due to the company’s negligence. Because of the overall market collapse, selling pressure came in, forcing the stock to drop back to the mid-$200s.
However, a second explosion occurred on Thursday, when Biogen stock (NASDAQ:BIIB) benefited from a solid day in the market and returned to the $270 level. However, it is still trading below where it rocketed after the Phase 3 lecanemab update, providing investors with a chance to pounce on a company with momentum and a possible catalyst in January’s expected FDA decision.
While some sell-side research firms are wary after the significant surge (and because of FDA uncertainty), others predict additional gains coming. Since the huge announcement, more than a dozen analysts have recommended Biogen stock (NASDAQ:BIIB) a buy, anticipating the strong trial results to pave the road for FDA clearance. Several of the updated price estimates are in the $300 range.
Featured Image – Megapixl © Avictorero
Author Okoro Chinedu 
