Why Shares Of Eli Lilly And Biogen Are Rallying Today

Shares of Biogen Inc. BIIB and Eli Lilly & Co. LLY are rallying in premarket trading on Monday despite the negative broader market sentiment.

Swiss pharma giant Roche Holding AG RHHBY announced that the two Phase 2 studies evaluating its gantenerumab in patients with mild cognitive impairment due to Alzheimer’s and mild Alzheimer’s dementia failed to meet the endpoint of slowing clinical decline.

Lilly and Biogen, which have separate Alzheimer’s pipelines, are moving in sympathy. Lilly’s regulatory application for its Alzheimer’s candidate donanemab was accepted for review under the accelerated approval pathway, the company said in early August.

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After a not-so-successful outcome of the launch of its FDA-approved Alzheimer's drug Aduhelm, Biogen is developing a late-stage asset named lecanemab for Alzheimer’s and two Phase 1 compounds for the same.

In July, the FDA accepted Biogen’s partner Eisai's ESALY biologic license application for lecanemab for an accelerated review and set a PDUFA date of Jan. 6, 2023.

Price Action: Lilly was rising 1.82% to $357.70 in premarket trading on Monday, according to Benzinga Pro data. Biogen shares jumped 5.22% to $304.56.