Adam Feuerstein Cautious On Biogen Following Alzheimer's Study

On Friday's PreMarket Prep trading show, STAT News senior writer Adam Feuerstein weighed in on the results from Biogen Inc BIIB and Eisai's Alzheimer's therapy candidate BAN2401.

While BAN2401 failed to show a significant difference from a placebo in a 12-month Phase 2 study, the companies said an 18-month study yielded a significant effect in patients treated with the highest doses of the drug. This caused Biogen's share price to rise nearly 20 percent.

Adam F's Take

Feuerstein, a renowned biotech reporter, warned investors not to get overly excited. The details released concerning the study are surface-level; Feuerstein called the report "a sliver of positive news" that leaves "lots of unresolved questions." Still, he welcomes any glint of hope in Alzheimer's treatment, which he described as having a historical "100-percent failure rate."

He said BAN2401 is like Biogen's "back-up drug." Another Alzheimer's candidate from Biogen, aducanumab, is undergoing Phase 3 clinical trials.

Feuerstein said something like this Biogen news "could get people more interested" in larger-cap biotech stocks, but warned of cautiousness in general moving forward.

You can listen to Adam's full interview on the Benzinga YouTube page by following this link. Adam's appearance begins at the 9:05 mark.

Looking Ahead

While the July 5 report didn't provide in-depth data, which Feuerstein noted wasn't unusual, investors should be on the lookout for Alzheimer's conferences in the coming months where Biogen will likely present a more complete trial report. The Alzheimer's Association International Conference begins on July 22 and the American Neurological Association's annual meeting begins Oct. 21.

Biogen was trading around $352.56 at time of publication, up 18 percent on the day.

Related Links:

The Alzheimer's Drug Pipeline: High Failure Rates In Research On An Increasingly Common Disease

Benzinga's Top Upgrades, Downgrades For July 6, 2018