Biogen Gives Up On Aduhelm Efforts After Two Years Of Controversial FDA Accelerated Approval For Alzheimer's, Shifts Focus On Newer Medicines
Portfolio Pulse from Vandana Singh
Biogen Inc (NASDAQ:BIIB) is discontinuing its Aduhelm Alzheimer's drug and the ENVISION clinical study, shifting focus to other Alzheimer's treatments like Leqembi and new modalities such as BIIB080 and BIIB113. The decision is not due to safety or efficacy concerns but to reallocate resources within its Alzheimer's franchise. BIIB080 is licensed from Ionis Pharmaceuticals Inc (NASDAQ:IONS). Biogen took a $60 million charge for the program's close-out costs in Q4 2023 and terminated its license with Neurimmune, returning the rights to aducanumab to them. Biogen's shares rose 0.81% to $249.07.
January 31, 2024 | 5:10 pm
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NEUTRAL IMPACT
Biogen is halting its Aduhelm Alzheimer's program to concentrate on other treatments, including Leqembi. The company took a $60 million charge for the program's termination but expects to reallocate resources effectively within its Alzheimer's franchise.
While the termination of Aduhelm may be seen as a setback, the reallocation of resources to other promising treatments and the positive market reaction (shares up 0.81%) suggest a neutral to slightly positive short-term impact. The $60 million charge is significant but seems to be absorbed by the market.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Ionis Pharmaceuticals licensed BIIB080 to Biogen, which is now a focus area after Biogen discontinued its Aduhelm program. This could potentially impact Ionis positively if BIIB080 shows promise.
Ionis Pharmaceuticals' connection to Biogen's new focus on BIIB080 could lead to increased attention and potential upside for Ionis if the drug progresses well. However, the impact is less direct than for Biogen, hence the moderate relevance and importance scores.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50