Biogen Stock Rises Following Encouraging Lupus Data

Biogen Inc. opened higher this morning at $199.99, buoyed by encouraging news regarding its lupus drug development. The initial excitement stemmed from the announcement of favorable results from the Phase 3 PHOENYCS GO study.

Despite this positive update, Biogen’s stock has since dipped 0.6%, currently trading at $194.66 per share.

The trial, conducted in collaboration with UCB, centered on dapirolizumab pegol, an anti-CD40L compound with a distinct mechanism for treating systemic lupus erythematosus (SLE).

The PHOENYCS GO study successfully achieved its primary endpoint, showing improvements over placebo. Analysts from RBC Capital noted that the trial also indicated clinical benefits in key secondary endpoints related to disease activity and flare-ups.

While detailed results will be shared at an upcoming medical conference, the success of the study represents a significant advancement for Biogen’s development pipeline.

RBC Capital acknowledges the positive data but cautions that the timeline for substantial revenue impact is still a few years away. They forecast that dapirolizumab pegol could potentially be available in the market by 2029 or 2030, subject to further Phase 3 studies and regulatory reviews.

A second Phase 3 study, known as PHOENICS FLY, is set to take place in 2024, with results expected in subsequent years.

The analysts at RBC express optimism, suggesting that today’s announcement “should generate some excitement” around Biogen’s pipeline. However, they also recognize that the company’s short-term stock performance is still heavily influenced by the uptake of Leqembi.

RBC has maintained an Outperform rating for Biogen, setting a price target of $292.00, indicating their confidence in the company’s long-term prospects despite current market fluctuations.