Biogen scraps two Alzheimer drug trials, wipes $18 billion from market value

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Biogen Inc and partner Eisai Co Ltd are ending two late-stage trials of their ex...

CHICAGO/TOKYO - Biogen Inc and partner Eisai Co Ltd are ending two late-stage trials of their experimental Alzheimer’s disease drug aducanumab, a major setback in the quest to find a treatment for the mind-wasting disease and a blow to Biogen, which lost more than $18 billion of its value on Thursday.

Markets in Japan were closed for a national holiday so the impact of the news on Eisai will be delayed. Any successful treatment for Alzheimer’s, which affects about 5.7 million Americans, is virtually guaranteed to become one of the world’s top-selling drugs. But efforts so far have had a dismal track record, with more than 100 failures.

Guggenheim analyst Yatin Suneja said Biogen instead should be looking to build its pipeline through acquisitions.Suneja said Biogen has about $42 billion in financing capacity and identified potential acquisition targets such as Sage Therapeutics Inc , GW Pharmaceuticals and Zogenix Inc that are “very interesting companies that should be considered now, more seriously.

Many companies including Biogen, Eisai, Lilly and AbbVie, are pursuing alternative approaches, such as focusing on tau, another Alzheimer’s protein that is more closely linked with the onset of symptoms.

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I take issue with the quote attributed to Guggenheim analyst, Yaris Suneja. You would not consider investment in Alzheimer ‘s research a “waste” if a loved one were so afflicted. This is a devastating disease. It takes a brave company to find an answer.

Why don’t they learn how to use CBDa?

I'll remember this.

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