Biogen Stocks Booming After Approval from FDA
Author: George Davis
Biogen developed a revolutionary drug to cure Alzheimer's, and now its share price is not stopping. Read this article to learn how FDA’s approval affected Biogen’s stock.
Biogen is a biotechnology company that specializes in neuroscience. The company is known for creating some of the best drugs for mental health. The company already had a strong position in the stock market. After receiving approval from the Food and Drug Administration for its Alzheimer’s disease medicine, the company’s shares skyrocketed at an all-time high. Previously, Biogen wasn’t very lucky in the stock market as its shares weren’t improving by a significant margin. The neuroscience expert company was looking for a breakthrough, and it got one with its Alzheimer's disease medicine.
The Effects of FDA Approval on Biogen Stock
After the much-awaited drug from Biogen was approved by the FDA, the share price of the company blasted $109.71, or 38% higher, to $395.85. These numbers are the highest since the company’s last spike in April 2015. As a result, the trading volume for Biogen stock also spiked up to 17.7 million shares against a full-day average over the past 30 days of 1 million shares.
Aduhel, Biogen’s drug for curing Alzheimer’s, is a breakthrough in medical science. This drug focuses on slowing down the disease rather than treating its symptoms. Biogen’s investors were treated with the biggest one-day increase in price ever since the company was launched in the stock market in September 1991. The stock price for Biogen had always been dependent on FDA, even to the point when FDA released a statement saying that there was substantial evidence in Biogen’s Aduhel drug its stock price spiked.
How Do Alzheimer's Drugs Work?
Currently available options only treat symptoms related to Alzheimer's. However, Biogen’s drug takes a unique approach that helps in recovering. The FDA described that accelerated approval pathways might depend on the drug’s effect on a particular endpoint. This is likely to predict a clinical benefit for the patients. However, Biogen still needs a post-approval trial to actually test the drug’s clinical benefits. As of now, the study, formula and other subjective aspects have determined Biogen’s drug to be useful in curing Alzheimer's disease.
The FDA confirmed that it will monitor the drug's performance when it reaches the US market. Moreover, the approval was granted because Biogen will carry out another clinical trial to make sure the drug is safe and effective. Biogen listed its drug’s price as $56,000 per year; $4312 per infusion. The CEO of Biogen said that the price was “fair” and promised not to hike it for four years.
As Biogen’s cure for Alzheimer's receives further approvals from the FDA, its share price is expected to increase beyond existing value. More and more investors are taking advantage of this opportunity and investing in Biogen to reap profits from its success. Moreover, its price receives a hike every time, FDA launches a statement in Biogen’s favour. After the drug hits the market, Biogen’s share price will most probably be higher than where it stands today.
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