Biogen Stock And The Limitation Of The Tau Approach To Alzheimer's Disease
Biogen received FDA approval for an injectable form of Leqembi, but its injectable form is less expensive than infusions but still costly and associated with brain bleeds and swelling, especially in APOE4 carriers. Diranersen shows slightly less efficacy than Leqembi, wit…
Intelligence analysis by Llama
Biogen's stock price rose after the FDA approved an injectable form of Leqembi, but the drug's limitations, including its cost and side effects, may limit its impact on the company's valuation.
Imagine you have a big puzzle with many pieces. Alzheimer's disease is like a puzzle where some of the pieces are missing or don't fit together right. The brain is like a computer that needs all the pieces to work properly. When the pieces are missing or don't fit, the computer gets confused and can't work right. That's what happens in Alzheimer's disease. The brain gets confused and can't work right. The medicine Leqembi is like a tool that helps put some of the pieces back together. It's not a perfect tool, but it can help a little bit. The problem is that the brain is very complex, and it's hard to find the right pieces to put back together. That's why Alzheimer's disease is so hard to treat.
Analysis
A $60B Vote of Confidence
Biogen's stock price rose modestly after the U.S. Food and Drug Administration announced the approval of an injectable form of its anti-amyloid drug Leqembi. Shortly after this, Biogen's stock price fell back down. This reaction is not surprising, given the limitations of Leqembi and the fact that it is not a blockbuster drug. Leqembi's injectable form is less expensive than infusions but still costly and associated with brain bleeds and swelling, especially in APOE4 carriers. Diranersen shows slightly less efficacy than Leqembi, without brain bleeds and swelling. Phase 3 results are not expected until 2030, and it is not likely to be a blockbuster drug. Leqembi and diranersen only slightly slow down the progression of mild cognitive impairment and mild Alzheimer's disease. Combination therapy may benefit certain groups, yet neither asset is likely to drive Biogen's valuation over time.
Why the Tau Approach Is Limited
The tau approach to Alzheimer's disease is limited because it only addresses factors that can contribute to oxidation and nitration, such as misfolded amyloid and tau proteins and neuroinflammation. Very few treatments for Alzheimer's disease direct scavenge compounds that cause oxidation and nitration, nor do they reverse any of the damage already present. Thus, most treatments for Alzheimer's disease only slow down the early progression of the disease for awhile. Certain natural products such as panax ginseng and various essential oils via aromatherapy inhibit oxidation and nitration, scavenge agents that cause oxidative and nitrostative stress, and reverse part of their damage. Such treatments have the potential to stabilize Alzheimer's disease.
The Road Ahead
Biogen's stock price may continue to be impacted by the limitations of Leqembi and the development of diranersen. The company's valuation may not be driven by these assets over time, and investors may need to look elsewhere for growth opportunities. However, the approval of Leqembi and the development of diranersen are significant events in the treatment of Alzheimer's disease, and they may have a positive impact on the company's stock price in the long term.
Key points
- Biogen received FDA approval for an injectable form of Leqembi.
- Leqembi's injectable form is less expensive than infusions but still costly and associated with brain bleeds and swelling, especially in APOE4 carriers.
- Diranersen shows slightly less efficacy than Leqembi, without brain bleeds and swelling.
- Phase 3 results for diranersen are not expected until 2030.
- Leqembi and diranersen only slightly slow down the progression of mild cognitive impairment and mild Alzheimer's disease.
If the development of diranersen continues to show promise, it may become a viable treatment option for Alzheimer's disease. Additionally, the approval of Leqembi may lead to increased investment in the development of other anti-amyloid drugs, which could ultimately lead to a breakthrough in the treatment of Alzheimer's disease.
The limitations of Leqembi and the development of diranersen may impact Biogen's stock price and the company's ability to drive its valuation over time. Additionally, the complexity of Alzheimer's disease may make it difficult to find effective treatments, which could lead to continued challenges for Biogen and other companies working on Alzheimer's disease.
