Why Biogen Stock Is On Fire Today
Biotech heavyweight Biogen (NASDAQ: BIIB) is poised for a sizable jump in its share price later today once the trading halt on its stock is lifted following the surprise Food and Drug Administration approval of its controversial Alzheimer's disease drug aducanumab. The biotech's partner on this project, Eisai (OTC: ESALY), is enjoying a banner day in the market in the wake of this news, with the Japanese biopharma's shares rising by an astounding 45% as of 11:24 a.m. EDT Monday morning.
Aducanumab is the first drug ever approved to treat the underlying cause of this deadly mind-wasting disease, although the drug failed one of its two pivotal trials, leading to controversy surrounding the FDA's approval.
But with over 5.8 million American adults currently afflicted with this neurodegenerative disease, according to estimates from the Centers for Disease Control and Prevention, Wall Street expects the drug to generate over $5.7 billion in revenue by 2027.
Source Fool.com
