Biogen and partners target Alzheimer’s diagnostics

CAMBRIDGE, Mass. – Biogen Inc. (NASDAQ:), Beckman Coulter, Inc., and Fujirebio have announced a collaboration to develop blood-based biomarkers for tau pathology in Alzheimer’s disease (AD), potentially advancing the diagnosis and treatment of the neurodegenerative disorder. The partnership, revealed on July 30, 2024, aims to create and commercialize new tests that could stratify patients and monitor treatment responses in clinical trials and practice.

The collaboration seeks to address the challenge of measuring tau, a protein that forms tangles in the brains of AD patients, through accessible, minimally invasive blood tests. These biomarkers could provide insights into the disease’s progression and assist in the development of therapies targeting tau pathology.

Jane Grogan, Ph.D., Head of Research at Biogen, emphasized the potential benefits of the collaboration, stating that the combination of Biogen’s biomarker expertise and its partners’ diagnostic capabilities could accelerate the development of blood-based diagnostics for AD.

Kathleen Orland, Senior Vice President at Beckman Coulter Diagnostics, highlighted the commitment to making high-quality neurological tests widely available, while Monte Wiltse, President & CEO of Fujirebio Diagnostics, Inc., pointed to the urgent medical need for such biomarkers.

Under the terms of the collaboration, Biogen will contribute clinical study data and biomarker research expertise, while Fujirebio and Beckman Coulter will handle diagnostic development, manufacturing, and commercialization.

Biogen, established in 1978, is known for pioneering innovative treatments in biotechnology. Beckman Coulter has been a leader in diagnostics for over 80 years, and Fujirebio is recognized for its extensive experience in in vitro diagnostics.

This news is based on a press release statement and reflects the companies’ current plans for developing diagnostic tools for Alzheimer’s disease.

In other recent news, Biogen’s Alzheimer’s drug, Leqembi, faced a setback as the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) gave a negative recommendation due to safety concerns.

This decision prompted Baird to adjust its price target for Biogen shares from $316.00 to $294.00 while maintaining an Outperform rating. Similarly, Piper Sandler and RBC Capital also revised their price targets to $307 and $282 respectively, but kept their positive ratings.

Despite these challenges, Goldman Sachs reiterated its Buy rating and $342.00 price target on Biogen. The company, in collaboration with Eisai, plans to appeal the decision and request a re-examination of the product. Eisai shares experienced a significant decline following the EU’s rejection of Leqembi, impacting sales estimates significantly.

These developments come as Biogen recently completed the acquisition of Human Immunology Biosciences, integrating its late-stage therapeutic candidate, felzartamab, into its immunology pipeline. Additionally, Biogen and Eisai launched Leqembi in China, marking a significant step for the company in the international market.

These are some of the recent developments for Biogen.

InvestingPro Insights

As Biogen Inc. (NASDAQ:BIIB) embarks on a promising collaboration to advance Alzheimer’s diagnostics, the company’s financial health and market position remain key factors for investors to consider. According to InvestingPro data, Biogen’s market capitalization stands at a robust $31.22 billion, reflecting its significant presence in the biotechnology sector—a point underscored by one of the InvestingPro Tips, which identifies Biogen as a prominent player in the industry.

The company’s P/E ratio, an indicator of what the market is willing to pay for a company’s earnings, is currently 26.61, with an adjusted P/E ratio over the last twelve months as of Q1 2024 at 18.76. This adjustment suggests a more favorable valuation when considering the company’s earnings over the past year. Additionally, Biogen has demonstrated a strong gross profit margin of 75.49% in the same period, highlighting its ability to retain a significant portion of sales revenue after accounting for the cost of goods sold.

Investors may also find reassurance in the company’s financial stability, as Biogen’s liquid assets exceed its short-term obligations, according to another InvestingPro Tip. This tip, along with the data showing Biogen’s profitability over the last twelve months, may instill confidence in the company’s ability to sustain its research and development efforts without compromising its financial health.

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