: One Alzheimer’s drug has failed, but investors are still betting on Biogen and Lilly treatments

by | Nov 14, 2022 | Stock Market

Biogen’s
BIIB,
+5.19%
stock is rising again as investors double down on the company’s promising yet still experimental treatment for Alzheimer’s disease.  The company’s stock soared Monday morning after Roche Holding
ROG,
-3.98%
and MorphoSys
MOR,
-27.47%
said their own Alzheimer’s drug failed to meet the primary endpoints in two late-stage clinical trials. The drug, gantenerumab, neither reduced cognitive decline in a statistically significant way nor cleared the amyloid plaques commonly found in the brains of people diagnosed with the disease.

lecanemab, the drug being tested by Biogen and Eisai Co. Ltd.
4523,
-1.18%,
also aims to reduce amyloid plaques, an unproven but still compelling method of treating Alzheimer’s disease. However, Monday’s news didn’t dissuade investors. Some Wall Street analysts say that gantenerumab’s failure isn’t indicative of all amyloid-plaque-clearing treatments. And even though the drug failed within the parameters of the clinical trials, it did demonstrate some amyloid activity, which further bolsters the case for lecanemab and for Eli Lilly & Co.’s
LLY,
+2.17%
donanemab. “The fact that [gantenerumab] showing any directional signals of activity reaffirms that beta-amyloid antibodies are active and should eliminate any residual concerns that [lecanemab]’s success was a fluke,” RBC Capital Markets analyst Brian Abrahams told investors on Monday. “Rather, [lecanemab] just looks to be a better antibody.” Other companies developing anti-amyloid treatments for Alzheimer’s also saw their stock prices jump on Monday. Lilly’s stock was up 0.7% in trading on Monday morning, as were shares of Prothena Corp.
PRTA,
+7.26%,
w …

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