Biogen rallies Alzheimer’s drug developers after full data for lecanemab
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Biogen (NASDAQ:BIIB) shares spiked Wednesday, rallying other Alzheimer's drug developers after the company and its partner Eisai (OTCPK:ESALY) (OTCPK:ESALF) announced full data from their Phase 3 trial for lecanemab, an experimental therapy for the memory-robbing disease.
The results, presented at a medical conference and simultaneously published in the New England Journal of Medicine, indicated that lecanemab moderately slowed the decline in cognition and function compared to placebo in patients with early-stage Alzheimer's disease.
However, the beta-amyloid beta (AB) antibody was also linked to higher brain swelling and bleeding rates, with six deaths reported in the lecanemab groups compared to seven in the placebo group.
Commenting on the results, JPMorgan analysts led by Chris Schott wrote that "this full should increase confidence in the likelihood of full approval and reimbursement for lecanemab (as well as the broader AB-antibody class.)."
The team expects shares of Biogen (BIIB) and those of rival Alzheimer's drug developer Eli Lilly (LLY) to react favorably to the results, which they said help validate over $20B market opportunity for AB-antibody class.
According to Bank of America, detailed Phase 3 results for lecanemab indicated no additional safety concerns and no notable efficacy difference to Aduhelm, a controversial FDA-approved Alzheimer's therapy developed by Biogen (BIIB) and Eisai (OTCPK:ESALY) (OTCPK:ESALF).
"Our takeaway is that investor sentiment is unlikely to change and debate on clinical benefit and safety will continue," BofA analysts led by Geoff Meacham wrote, maintaining the Neutral rating and $320 per share target on Biogen (BIIB).
Meanwhile, Wells Fargo analysts led by Mohit Bansal argued that results excluding data from a specific patient group called homozygous ApoE4 carriers indicated stronger efficacy for lecanemab.
"We would be buyers of BIIB here since these data help establish a large subgroup with strong benefit/risk profile and establish value of continuous use," the analysts wrote.
Other Alzheimer's drug developers are also on the rise in the morning hours Wednesday. Notable gainers include Prothena Corporation (PRTA), Alector (ALEC), and Alnylam Pharmaceuticals (ALNY).
However, Cassava Sciences (SAVA), which targets altered filamin A (FLNA) protein in the Alzheimer's brain with its experimental therapy Simufilam is in the red alongside other notable decliners Quince Therapeutics (QNCX), Anavex Life Sciences (AVXL) and AC Immune (ACIU).
Anavex (AVXL) is scheduled to present data from its Phase 2b/3 for its Alzheimer's candidate blarcamesine at the same medical event on Thursday.