Eisai (ESALY) and Biogen Inc. (BIIB) announced that their experimental Alzheimer’s drug slowed the progression of the disease in the latest Phase 3 trial of 1795 patients.
Trial results showed that lecanemab Alzheimer’s Drug slowed by 27% the expansion of the disease compared to the placebo. The Phase 3 trial is based on the three-decade-old assumption that the elimination of deposits of the amyloid beta protein from the brains of patients can delay the growth of the disease. Side effects were detected in the brain but didn’t cause any symptoms. ESALY would present the Phase 3 trial results on November 29 at a conference and plans to publish the results in respected medical journals.
Eisai, (ESALY) is based in Japan and is the leader of lecanemab drug program, and is seeking accelerated FDA approval by January 2023. The company will also seek approval in Europe and Japan.
Mizuho Securities upgraded Biogen
Mizuho Securities, upgraded Biogen stock (BIIB) to buy from neutral after the pharmaceutical group and its Japanese partner Eisai announced the positive trial results. I expect more analysts to follow with upgrades to the two pharmaceutical companies
Eisai and Biogen have disappointed investors after the failed launch of Aduhelm another Alzheimer’s treatment. Morgan Stanley estimates the market for Alzheimer’s drugs to be more than $20 billion in the U.S.
Eisai in August reported a 36.1% drop in profit for the first fiscal quarter due to a sharp depreciation of the yen and higher general and administrative expenses.
Strong Rally for ESALY and BIIB Expected Today
Eisai stocks ended yesterday’s session at $39.79. The stock is down 29% since the beginning of the year. Today the stock in the Japanese market finished 17%.
Biogen (BIIB) stock finished 1.04% higher yesterday’s trading session at $197.79. The stock lost 17% of its market capitalization in 2022. In premarket trading, BIIB shares are trading 46% higher at $290.06.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).