Biogen Just Lost $18 Billion In Value

Alzheimer’s disease is a progressive and irreversible brain disorder that is characterized by a steady decline in cognitive, behavioral and physical abilities severe enough to interfere with everyday life and necessitate full time care.

Individuals with Alzheimer’s disease may have trouble finding the right words to use, recognizing objects (such as a pencil), recognizing family and friends, and may become frustrated, irritable, and agitated. As the disease progresses, physical problems may include loss of strength and balance, and diminishing bladder and bowel control.

As more and more of the brain is affected, areas that control basic life functions, like swallowing and breathing, become irreversibly damaged, resulting eventually in death.

The Alzheimer’s Association estimates that 5.5 million people age 65 and older have Alzheimer’s disease in the United States. 

Source

NOTE: that would mean about 115 million people in the world have Alzheimer’s disease.

Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide. Yesterday, shares of Biogen sank 30% and destroying $18 billion of market value, after the company and Japanese partner Eisai announced they were discontinuing late-stage clinical trials of aducanumab, a drug candidate for treating Alzheimer’s disease.

Aducanumab was designed to reduce abnormal protein deposits called amyloid plaques in the brains of Alzheimer’s patients, but the endpoint wasn’t being met during the trials.

Source

Biogen also had two other drug candidates to tackle Alzheimer’s, but those drugs are in jeopardy based on the Aducanumab’s failure.

Biogen has collaboration agreements with around a dozen drugmakers and based on a free cash flow valuation, the stock is cheap.  So is it time to by Biogen, lets go to the charts?

Monthly Chart (Curve Timeframe) – the monthly demand is at $190 and monthly supply is at $380.

Weekly Chart (Trend Timeframe) – the trend is sideways .

Daily Chart (Entry Timeframe) – the chart suggests to go long if price goes down to the daily demand at $198.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.