Biogen Inc. ( BIIB ) stock traded higher after Novo Nordisk A/S ( NVO ) released disappointing topline results from the 2-year primary analysis of Evoke and Evoke+ phase 3 trials in early-stage symptomatic Alzheimer's disease.

BIIB is reaching significant price levels. Watch the momentum here

The trials did not confirm the superiority of semaglutide versus placebo in the reduction of progression of Alzheimer's disease, as measured by the change in Clinical Dementia Rating – Sum of Boxes (CDR-SB) score compared to baseline.

Only two Alzheimer's slowing drugs are currently approved — Eli Lilly and Co.'s ( LLY ) Kisunla and Leqembi (lecanemab) from Eisai and Biogen's — both of which require infusions or injections and carry risks of serious side effects.

Also Read: Biogen's Immunology Pipeline Has Long-Term Potential: Analyst

Background

In August, the U.S. Food and Drug Administration (FDA) stated that it is requiring an additional MRI scan for Alzheimer's patients receiving Leqembi (lecanemab), citing safety concerns over a rare but potentially fatal side effect.

Biogen's Leqembi, developed to slow the progression of Alzheimer's disease in patients with mild cognitive impairment or early-stage dementia, received FDA approval in 2023.

The antibody therapy targets beta-amyloid plaques, protein deposits in the brain linked to the disease's progression.

By reducing these plaques, the drug aims to preserve cognitive function in its earliest stages.

Why Does It Matter?

Concurrently, on Monday, Biogen and Dayra Therapeutics announced a research collaboration to discover and develop oral macrocyclic peptides for priority targets in immunological conditions.

Macrocyclic peptides have a unique profile with the potential to offer biologic-like efficacy and safety in an oral format, potentially disrupting established antibody-based treatments. 

The collaboration enhances Biogen's strategy to build a differentiated immunology portfolio.

Under the terms of the agreement, Dayra Therapeutics will receive a $50 million upfront payment, and Biogen has the option to acquire the development candidates from Dayra Therapeutics for a potential additional payment per program.

Dayra Therapeutics will also be eligible to receive preclinical and clinical development milestone payments per program.

BIIB Price Action: Biogen shares were up 3.74% at $181.85 at the time of publication on Monday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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