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Biogen stock falls on Alzheimer's drug trial death reports

Published 11/28/2022, 10:05 AM
Updated 11/28/2022, 10:13 AM
© Reuters Biogen (BIIB) Stock Falls on Alzheimer's Drug Trial Death Reports
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By Sam Boughedda

Biogen (NASDAQ:BIIB) shares dipped Monday after a report by Science.org stated that a woman participating in a trial of experimental Alzheimer's treatment lecanemab had recently died from a brain hemorrhage.

According to the report, some researchers linked the brain hemorrhage to the drug. It is said to be the second death thought to be associated with lecanemab, intensifying questions about its safety.

Eisai Co (OTC:ESALY) is a Japanese company that initially developed lecanemab with Swedish firm BioArctic. Biogen sponsored the trial with its U.S. biotech partner Biogen.

Following the report, RBC Capital analysts sent out a research note stating that the reported death reinforces DDI risk and the need for careful Pt selection, but it "should not substantially change opportunity."

"Additional reported pt death highlights importance of careful pt selection for real-world leca use but is consistent with our, and we believe physician, views of the drug's benefit/risk and should not change ultimate revenue opportunity over time. Would be buyers on any weakness," wrote the analysts.

Meanwhile, Truist analysts told investors in a note that "there are questions around the use of blood thinners and lecanemab and potentially other anti-amyloid drugs."

"The recent news and AEs of the drug raise lots of questions whether this could be a class effect," the analysts stated. "With the recent case associated with tPA, which is used to treat blood clots in stroke, there could be additional newsflow and datapoints around the use of blood thinners with lecanemab that could be a key risk to owning the story."

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