If you follow the biotech sector (or just the news in general, tbh) you’ve probably heard about the drama related to Biogen’s Alzheimer’s drug, Aduhelm — basically, after Biogen fumbled news about the efficacy of Aduhelm to the public, Medicare refused to pay for the drug. Now, Biogen’s CEO is resigning. That’s the tea. ☕
Michel Vounatsos, CEO of Biogen, is resigning and leaving behind his Aduhelm project, and with it, the potential for a blockbuster breakthrough in the biotech world. Vounatsos said that he will stay on the company’s board and assist in the search for a new CEO, but Biogen’s marketing of Aduhelm will end with Vountasos’ departure. Cutting marketing for Aduhelm is saving the company a whopping $500 million.
For patients interested in the drug, one of three things will happen:
1. You’ll have to pay $28K/yr for Aduhelm access because insurance won’t cover it…
2. You may have to enroll in clinical trials for insurance to consider coverage…
3. If you’re already taking the drug, Biogen will continue to provide it to you free of charge.
$BIIB fell just 0.78% today, but is up 1.4% after hours. The chart from today doesn’t do it justice, so we decided to zoom out. These are trying times for Biogen longs.
Outside of Biogen, the tried and true biotech and pharma giants have actually been looking up lately. Covid was good to bio, the economy’s reopening was bad for it, but Big Pharma is showing its propensity for success in challenging market conditions. 💪
You don’t have to take it from us. We can just refer you to today’s two other big pharma earnings calls:
Take Pfizer, for example. The company reported earnings and gained 2%. Pfizer lowered its EPS guidance for the year to $6.25 to $6.45 from the previous $6.35 to $6.55. Nonetheless, $PFE revenue soared +77% in the first quarter thanks to demand for Covid vaccines and the company’s antiviral pill, Paxlovid.
Here’s all of Q1, plus some of late Q4 to give you a taste of recent action:
And Teva Pharmaceuticals, which not that long ago was considered on bankruptcy watch, was another biopharma name that gained thanks to successful earnings. The company posted a fat increase in revenue — $955 million in Q1 2022 compared to $77 million in Q1 2021, to be exact — and $TEVA gained 1.5% after hours.
This one deserves even more zooming out. Check out this chart from May 2011 to present. Maybe they’ve got a plan to get back to those higher highs? 🚀
