BIIB stock is having one of its biggest one-day gains in the past few years as Biogen Inc (NASDAQ:BIIB) plans on pursuing a regulatory application for the Alzheimer’s disease candidate aducanumab in the United States.
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In a new development that should come as a pleasant surprise for investors in BIIB stock, Biogen announced that it is going to ask for regulatory approval in the United States for its Alzheimer’s therapy product. The product in question had almost been abandoned by the company after the clinical trial failed twice.
However, further evaluation of the data from those trials convinced the company to revive the project. The failed trials proved to be a major blow for the company; however, the revival is a significant event. It could count among the biggest turnarounds in the pharmaceutical industry if Biogen is successful in getting permission for the product.
In addition to that, an eventual approval for the product is also expected to send BIIB stock price soaring. The company revealed that it reviewed the data from the two failed clinical trials of the product. In addition to that, Biogen spoke to the United States Food and Drug Administration and decided to revive the project.
BIIB stock is up a whopping 28% at $286.20, off the session’s high of $318.
The data from the failed clinical studies showed that medicine did, in fact, help Alzheimer’s patients with the ability to perform rudimentary tasks and also improved cognitive functions.
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It was back in March this year when the company announced that the studies had ended in failure, and soon after, BIIB stock tanked by as much as 25%. As a matter of fact, questions had also been raised about the actual future of the company, which is why this particular development has come as a major boost.
Despite today’s big jump. BIIB stock is still down 5% so far in 2019.
Featured image: DepositPhotos © scanrail
