Could Biogen Be a Millionaire-Maker Stock?
On June 7, the U.S. Food and Drug Administration (FDA) approved Biogen's (NASDAQ: BIIB) Aduhelm (aducanumab) for the treatment of Alzheimer's disease. Shares were briefly halted pending the FDA's announcement, then soared over 60% intraday after trading resumed.
This was a major milestone for lots of reasons, including that the drug's mechanism of action largely relies on the beta-amyloid hypothesis. The theory suggests the buildup of such protein fragments in the brain is responsible for the onset of Alzheimer's disease. Many big-name biotechs have tried their hand at developing a drug targeting beta-amyloids over the past two decades. They have all failed -- until now.
The agency's decision was also unprecedented. Aduhelm previously failed two phase 3 clinical studies evaluating its efficacy and only demonstrated a therapeutic signal through a post-hoc analysis. Moreover, the FDA contradicted the advice of its own panelists, who voted unanimously that the drug did not show any clinical benefits last November. With all of this in mind, does the commercialization of Aduhelm have the potential to turn Biogen into a millionaire-maker stock?
Source Fool.com
