Biogen discontinues development of Aduhelm while focusing on advancing Leqembi

  • Biogen discontinues development of Alzheimer’s drug Aduhelm
  • Company will focus on advancing Leqembi
  • Decision not related to safety or efficacy concerns
  • Resources from Aduhelm program will be redeployed in Alzheimer’s Disease franchise
  • Biogen to record a one-time charge of $60 million for close-out costs

Biogen has announced that it will discontinue the development of its Alzheimer’s disease drug, Aduhelm. The decision comes as the drug has been deemed a commercial failure. However, the company will continue to advance another treatment for the memory-loss disease, called Leqembi. Biogen clarified that the decision to end the development of Aduhelm is not due to any safety or efficacy concerns. The resources released from the termination of the Aduhelm program will be redirected to Biogen’s Alzheimer’s Disease franchise. The company expects to record a one-time charge of approximately $60 million for close-out costs related to the program. Meanwhile, shares of Biogen were down 0.2% in premarket trading on Wednesday.

Public Companies: Biogen (BIIB)
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Factuality Level: 8
Justification: The article provides factual information about Biogen discontinuing the development of Alzheimer’s disease drug Aduhelm and continuing with Leqembi. It includes statements from Biogen and mentions the accelerated approval of Aduhelm by the FDA. The article also mentions the unsuccessful search for partners or external financing for Aduhelm and the one-time charge related to close-out costs. The information about the stock price of Biogen is also included.

Noise Level: 7
Justification: The article provides a brief overview of Biogen’s decision to discontinue the development of Alzheimer’s disease drug Aduhelm and focus on another treatment called Leqembi. It mentions that the decision is not related to safety or efficacy concerns and that resources will be redeployed in Biogen’s Alzheimer’s Disease franchise. However, the article lacks in-depth analysis, scientific rigor, and evidence to support its claims. It also does not provide any actionable insights or explore the consequences of the decision on those who bear the risks.

Financial Relevance: Yes
Financial Markets Impacted: Biogen

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the discontinuation of a drug development program by Biogen, a biotechnology company. This decision may have financial implications for Biogen and its stakeholders.

Reported publicly: www.marketwatch.com